Customer retention is the process of keeping existing customers interested in your business so that they continue buying products or services from you. This is different than customer acquisition or lead generation because you have already converted the customer. By retaining customers, it allows you to form long-lasting relationships with them and ensure they stay loyal to your brand. Even better, these loyal customers may spread the word about your products or services to their own network, which can turn them into your very own brand ambassadors. What are the benefits of using retention marketing strategies in your marketing campaigns? Here’s what you need to know.
It’s Cheaper Than Acquisition
You may have heard the saying “it costs five times as much to acquire a new customer.” Although this may not be completely accurate, the basic principle is true. It is more affordable to maintain your customers than to acquire new ones. There is plenty of research available that shows the difference between acquisition and retention, but most of these sources favor retention as the more cost-effective option.
Loyal Customers Are More Profitable
As previously mentioned, customer loyalty costs you less, but did you know that it also has better returns? Research has shown that engaged customers purchase 90% more often and spend 60% more per transaction than new customers. They are also five times more likely to use only that brand to get the product or service they need in the future. Since loyal customers are more profitable, you should do your best to ensure that you are not taking them for granted. Although they may be more open to increases in prices, don’t overdo it and risk losing them to your more affordable competitors.
You’ll Earn More Word-of-Mouth Referrals
Loyal customers will eventually become your best source of acquiring new customers. Although you could spend hours and money investing in online and mobile marketing or posting regularly on social media to attract new customers, it won’t make a dent if your customers aren’t talking about your business. The highest influence on people is recommendations from their network.
Engaged Customers Provide More Feedback
Every successful business relies on feedback from its customers. Feedback helps businesses improve on weak points and offer value based on the needs of their customers. When your customers are engaged, they’re willing to tell you how you can earn their business repeatedly. When customers complain and see their issues resolved and taken seriously by your business, they are 84% less likely to decrease their spending.
Loyal Customers Are More Forgiving
Did you know that over $1.6 trillion is lost annually due to customers ditching a brand after a poor service experience? This is likely the top reason customers abandon a brand. However, loyal customers who have had a previously good experience with you are more likely to let a hiccup slide.
Gather Valuable Data
Most consumers in this modern world prefer a personalized shopping experience. In fact, over half of Millennials report that personalization is a high priority. Encourage your customers to fill out profiles and join your loyalty program, so that you can have the data you need to personalize their customer experience. This information will also help you create targeted marketing campaigns, boost your bond with customers, and implement your referral program.
Make Consumers Feel Appreciated
A personalized and comprehensive loyalty program will make your customers feel appreciated and develop an emotional connection with your band. This leads to more patience from them if you fall short of their expectations. Offering rewards and points for their interactions with you or offering special discounts on their birthdays goes a long way.
Help You Stand Out from the Crowd
Take a moment to consider how many advertisements your customers are faced with every day, especially when they browse the Internet. You can probably imagine the effort those businesses take to acquire customers. This is what makes retention-centric strategies stand out even more. While your audience is seeing thousands of marketing exposures each day, you can stand out by taking your time connecting with your existing customers. Instead of finding the newest and most unique selling points, focus on how you can keep your customers by providing continuous value and personalization.
Attract New Customers
A retention and rewards program can naturally work as an acquisition strategy. By offering points or deals when a customer registers for the first time (through existing customer referral, for example) will automatically attract new business. Customers always want to take advantage of discounts.
How North American Media Can Help You Retain Customers
Having a retention marketing strategy is clearly beneficial to your business, whether you’re looking to grow your business or keep things as they are. Offering your customers incentives to stick around and continue making you their go-to brand for what they need will only stabilize your bottom line and give your business security.
If you need help developing and implementing a retention or rewards program for your customers through digital and print media, look no further than North American Media. We can help you improve your marketing strategy by creating print media ads that interest your readers and appeal to their emotions and interests. We can help you stand out from your competitors as you create a seamless connection between your digital and print platforms, which is essential to growing your customer base and getting consumers’ attention. We will also help you focus on retention, so the customers you’ve acquired stay loyal.
If you want to experience the advantages of a successful customer retention strategy, the team at North American Media is ready for your call. We offer a variety of services to our clients including print media, direct mail marketing, list brokerage, data solutions, list fulfillment, and list management. For more information about how we can help grow your business, contact us at (475) 256-0303.
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