3 Effective Retention Marketing Strategies for Business
Lifecycle marketing or loyalty marketing is a term that mainly boils down to keeping their customers engaged, spending, and happy through retention marketing. You can significantly increase their customer lifetime value, overall revenue for your business by delivering engaging and relevant content to your customers. It is where the retention marketing strategies prove to be quite effective.
It will cost about seven times more in terms of attracting the new customers who do not retain the existing ones, for instance. According to the research, it is seen that there are about 5% increases in customer retention generating up to 125% in profits.
There would be a customer churn when you are ignoring the retention marketing and mainly aiming at the customer acquisition results, ultimately leading to the loss of revenue and profit margins. Smart businesses, therefore, are putting a more prominent focus on retention marketing strategies.
Engaging relationships with your customers and building two-way are involved under successful retention marketing.
It is two very different things in terms of doing retention marketing and getting it done well. Today, we have brought together the three ways in which you can incorporate the retention marketing strategy into your business:
1) Redefine How You Measure Customer Value
It is quite easy in terms of measuring customer acquisition. It equals your revenue in terms of how much they are making in their initial purchase and how much it would cost to acquire them. It is extremely easy.
It is the reason why there are several marketing campaigns that are focusing on attaining customers and thinking about the discounts along with the other techniques that might eat off the profits here. Consumers are, however, becoming smarter and getting discounts along which are not equal in terms of driving sales.
2) Make the Investment in Data-Driven Technology
It is all about communicating with your customers on the personal and individual level with messaging offering them the specific requirements is known to be retention or customer retention. For companies of any size, personalization of some kind is feasible with the help of technologies today.
You are marketing in terms of speaking to your customers on an individual level where you would need additional data and information about them in order to personalize your marketing. There are companies out there sitting on the pile of customer data, but this is the issue that is quite touched to analyze along with being able to pull them off from the data along with the actionable insights, and this is where data science plays its significant role.
Due to the high costs that are associated with data science, this used to be something that only the bigger companies like Amazon could afford to do. These days, companies are making use of third-party vendors to aid in collecting and analyzing the data on their customers.
Companies would be able to check out the results along with the robust ROI, especially for the ones who are willing to invest in the resources and technology to help them gather and analyze customer data in the best way.
3) Reprioritize and Restructure Priorities
It is based on the profitability of every item when it comes to the priorities in business. Since it is quite easy to measure the ROI of acquisition, it becomes the first priority when it comes to marketing, and there are smart marketers who know that retention marketing is equally important than acquisitions as it is often the first priority here.
According to reports, about 82% of the companies now agree that retention is cheaper in terms of execution compared to the acquisition, and it is far more effective in terms of improving your bottom line.
They are rewarded generously for their efforts since the companies take retention marketing seriously. The ability to keep the customers who you worked so hard in terms of acquiring will pay off to the ones who are making this investment while it is not that easy in terms of implementing into the established marketing strategy.