This is a guest post by Frank Vitetta who works as a freelance marketer for Metrilo.com.
Over the last few years, I have been increasingly involved in retention marketing and I have noticed how this new terminology is replacing the old “brand loyalty” term.
(source Google Trends)
Before we go into details for efficient customer retention, let’s ask a simple question. Imagine that you are a stamp collector, a dedicated gatherer of valuable assets. What is easier – to nurture your collection by buying protectable holders or simply search for a new set of stamps once you lose or destroy your existing ones?
Even a child would state that this is a silly question. If you cherish your collection, you will try to keep it intact. Customer retention works in a similar way. Your users are the valuable stamps. It is way cheaper to keep the ones you already acquired than to convert new ones. With the added bonus of adding revenue to your business. Because customers, unlike the stamps, generate profits for the whole lifetime of your relationship (Customer Lifetime Value).
- Even a 5% increase in retention rates may boost your profits by up to 95% (Harvard Business School)
- 4/5 of your future business comes from approximately 20% of your current, loyal customers (Gartner Group)
- The chances of selling to an existing customer are capped at 70%, while new prospective customers add up to only 20% (Marketing Metrics)
Customer Retention As a Top Priority
A core of loyal customers is the backbone of your successful business. This is why customer retention is a must. It is essential to build a lasting relationship with your customers, and this comes easier than you would think. If you care about your customer base, they will notice it – amazing customer service, high level of engagement, and also education – these are key points for an efficient customer retention platform.
A noticeable percentage of business owners approach customer retention with minimal care. They assume that retention marketing works on its own. But an existing customer base is not enough to keep your business going. You will need to invest more in keeping those customers. And it will cost you a lot less than leaving the future of your store on just a good faith.
Here are some of the most promising customer retention strategies. Some may suit your business perfectly; others may not be your type of action. In any case, you can only benefit from them.
Customer Retention Strategies For Optimal Success
Put simply, it is close to impossible to retain a customer who doesn’t notice you. They have to pay attention to your idea, to your products and deals. Like every relationship, business-to-customer also requires decent communication and engagement. An engaged and satisfied customer is a loyal customer.
A Rebel With a Cause – Customer Retention Basics
All of us embrace the idea of standing for something. Even the most rebellious people stand for their values. And a mass percentage of consumers share this ideology when it comes to picking favorite brands. Research shows that over 60% of loyal customers express “shared values” as the main reason for choosing a particular brand (Corporate Executive Board).
Retention marketing relies heavily on the personal connection between you and your customers. Although you can’t meet each of them in person, you can make it seem this way. A real connection is generated through personalized experiences for them. If you can make any customer feel special, they will gain the sense of knowing you. Not only as a brand/store leader but as a virtual friend. And this should be a key component in your customer retention strategy.
Summon the Inner Catalyst
Every customer, in general, chooses their preferred brands by resemblance. If the product/s vision and purpose relates to customer values and beliefs, it is more likely to provoke interest. In order to accomplish strong customer interest, you need to study your customer base thoroughly. Identify the core of loyal customers, and develop a message for their needs and goals. Every promising customer retention strategy has to be equipped accordingly.
It is easier to satisfy an existing demand rather than create an entirely new one. You can’t be sure how many customers will relate to your innovative ideas. The safer and more profitable route is the first one. In times of such competitive marketing, it is essential to present your customers with the most accurate answer to their desires.
Take Customer Experience to Another Level
You will be surprised how low-cost customer retention initiatives work on your clients. The key factor here is uniqueness. Think of welcome surprises, milestones, and customized rewards for each customer. It may seem like a lot of work, but it will pay off greatly.
Add a bonus item with their second or third purchase. It doesn’t need to be something overwhelming. Even a handwritten Thank you-note will make them feel special. And always rely on the surprise. Don’t proclaim bonuses on your website. Keep it on the low side. This way, every surprise gift will summon a feeling of personal involvement. And this type of retention marketing creates the most loyal customers.
Passion, Engagement, and Responsive actions in Retention Marketing
First and foremost – care for your customers. This includes friendly behavior, gifts, and bonuses, but also innovation. Make sure to be aware of new technologies and ways to benefit your customers. Every properly answered question adds up to the Customer Lifetime Value (CLV). Every piece of customer feedback enables you to react to their needs. Every proactive customer retention initiative expands your loyal customer base.
We know how tough it can be to satisfy every customer. This is why you need an efficient customer support system. Hire professionals, rather than temps to do the job. Optimize your automated customer support tools, and invest in real employees to cover every customer’s need. After all, your clients are the people who dictate the place and time of engagement with brands. Follow their leads and try to be everywhere. At any time given.
Don’t Hesitate to Implement Customer Retention Platforms
In relation to the previous point, being “everywhere” is easiest when you engage in the digital world. Metrilo.com is SaaS platform, oriented towards e-commerce retention marketing. With their help, you can track purchase history, campaign success, and the most promising existing customers.
To identify the strengths and weaknesses of your customer retention actions is crucial. With enough data, you can greatly boost customer lifetime value, average order values, and even conversion rates.
If you want to check our more retention marketing platforms, my friend Tom has got a nice site here: http://retentionmarketing.co/ with the right platform you can expect a 67% rise in Customer Lifetime Value, along with 39% better conversion from emails, and 48% better retention rates.
Is brand loyalty dead? Let me know what you think.
Matt Ramage is founder of Emarketed a web marketing agency located in Los Angeles. He loves coffee, good design, and helping businesses improve their look and getting found on the Internet.