Retention Marketing & Customer Loyalty
Everyone knows repeat business is a good thing, but are you putting as much effort into it as you are into gaining new business? Shifting your focus to retention marketing might be more profitable than you realize.
THE VALUE OF CUSTOMER LOYALTY
We often think of “acquisition” of as the end of the sales funnel and therefore the main goal of marketing. Yet it’s actually much easier to sell to customers you already have a relationship with. Additionally, marketing to existing customers costs less and has a higher ROI!
Loyal customers are also the most trusted (and free) source of advertising! If someone has a great experience with a business, they’re likely to share it. They’re probably going to tell friends and family, post on social media or might leave a good review.
“…research done by Frederick Reichheld of Bain & Company (the inventor of the net promoter score) that shows increasing customer retention rates by 5% increases profits by 25% to 95%
– Amy Gallo, ‘The Value of Keeping the Right Customers’
According to an article on Entrepreneur.com by Reshu Rathi, “The probability of selling to an existing customer is 60 to 70%. The probability of selling to a new prospect is somewhere in the 5 to 20% range.” – ‘7 Dreadful Marketing Mistakes to Avoid in 2018‘
RETENTION MARKETING STRATEGIES
Marketing cannot be thought of as just branding and advertising. Especially in retention marketing, you need to put thought into every interaction a customer has with your business. Take every opportunity to impress them and provide the best customer service possible.
Here are some ideas to help shift your marketing focus from retention to acquisition. These tips come from Eric Siu, a nationally acclaimed digital marketer, and CEO of Single Grain. His 10 main points are as follows, but I highly suggest reading the full article, ‘10 Customer Retention Strategies That Supercharge Your Marketing‘.
- Use a CRM.
- Prioritize retention marketing over acquisition strategies.
- Budget for retention marketing.
- Measure customer value.
- Focus on service.
- Send frequent communications
- Interact on social media.
- Turn complaints into opportunities.
- Start a frequent shopper program.
- Host an event.
If we have one advantage as small business owners, it’s being able to connect with our customers on a personal level. We can be involved in nearly every level of customer interaction and make a lasting impression. Big corporations don’t have that benefit and customers can feel that disconnect.
At the end of the day, if you work hard enough to deserve the business and your customers can see that you care, you will reap the rewards. If customers can’t see that you care, neither will they.
About the Author
I'm Abby (Armstrong-Lehman) Buzon, Lead Designer & Owner of The Helpful Marketer, based in Medina County, Ohio. I got my start in marketing and website administration in 2010, became a mom in 2015, and left my day job in 2017 to begin The Helpful Marketer. I'm happier than I've ever been and I truly love what I do, so I'm here to share my story and give some marketing tips along the way!