Are You Ignoring Customer Retention? If so, you are working harder and earning less money.
44% of businesses focus on customer acquisition, while only 18% focus on customer retention. ,semrush,
In a world where businesses are always on the lookout for new customers, it’s easy to forget the customers you already have. But customer retention is one of the most important things you can focus on if you want to build a profitable, ongoing business.
Let’s do it
What is customer retention marketing and why is it important
Customer retention is the process of keeping customers interested and engaged in a product or service. This is important because it helps businesses maintain a loyal customer base, which can lead to increased profits and long-term success.
What are the Different Types of Customer Retention Marketing?
There are many different types of customer retention marketing, in fact, most of them are just plain common sense; Communication, service, engagement and loyalty programs are just the tip of the iceberg.
Communications, Keep in touch with your customers through regular email newsletters, social media posts, or even personal calls or visits. Let them know that you care about them and want to keep them as customers.
loyalty programs.These programs offer customers rewards for continued loyalty, such as free products, discounts or bonus points.
customer service, Good customer service is vital to retaining customers. Make sure you have a team of dedicated employees who are willing and able to help customers with their needs.
The engagement, Keep your customers engaged with your product or service by releasing new updates, features or products. If you can keep their interest, they will be less likely to leave.
How can you keep your customers engaged
There are many ways in which you can engage your customers. Here are some of the most effective methods:
Accept them when they interact with you in any way.
here’s what it might look like
You noticed that someone viewed your LinkedIn profile — send them a message that says something like “Hi! I noticed you’ve been blocked from my profile. If you have any questions or if there’s anything I can help with, let me know!”
social media post people – Answer them and ask them a question; “What do you like about it?”
ask a question in your email And ask that they reply back – then start the conversation.
You get the idea – you engage first and keep engaging.
What are some common challenges with customer retention marketing?
The biggest challenge with customer retention marketing is that it takes time and energy to generate new business.
I understood. Your business can’t grow if you don’t have new customers, but if you keep the customers you do have and sell them more stuff, you’ll actually be working less and earning more.
Here are the basic steps involved.
Make customer retention a priority
You have to make retention a priority. Here is a great example. During the COVID shutdown, QuestionPro CEO Vivek Bhaskaran asked its sales team to shift their efforts from acquiring new business with their existing customers to expanding the already existing business. Result? 120% increase in sales! He says that COVID was his best sales year ever.
Create a natural way for customers to buy more from you
Your customers are not aware of everything you have to offer.
Whenever I voice customer research I ask my client’s customers about the various products and services they buy. But then I also read them a list of products and services and each one of them asks to find out more about these additional products.
Make sure you reach out to your customers and start conversations about all the different things you have to offer.
How do you measure the success of your customer retention marketing campaigns?
To measure success, you must have a list of customers and what they are buying from you. Then review this list and note what they can buy, but can’t.
In your CRM, add those recommended products to their profile.
In your next conversation with that customer, make sure you find a way to ask them about their needs so that you can recommend these other products or services.
If they are using an alternative or competitor, ask them what they like about their current solution and what needs improvement. Use this information to keep them updated and always on top of mind.
What are some best practices for customer retention marketing?
In addition to prioritizing customer retention, here are several other marketing strategies you can use to retain customers:
- Major Account Schemes: If you are in a B2B organization, create a prime account plan for your biggest customers. A key account plan places you in a partnership relationship with your client where you outline client goals and create projects to help them achieve those goals.
- Membership or Membership Options: Create offers that make it possible for customers to get discounted products and services monthly.
- Account Review: Make it part of your process to regularly engage with customers to review what they are buying and what other products or services will help them meet their goals in the future.
- VIP offers and events. Create special events and offers that are open to your top customers.
Where should you start when creating a customer retention marketing plan?
The best place to start is to select the customers and clients who are most important to your success.
Again, if you set customer retention as a priority, your entire marketing process will reflect that. Let’s look at each step of the marketing planning process.
- Research: Make sure you are continually seeking and collecting feedback from your customers. Then, don’t forget to implement their recommendations as much as you can and let your customers know about those changes.
- Segment – Goal – Positioning: The next big step is to take a fresh look at how you group your customers. This is the best time to consider doing a “profit-based” segment. Benefit based segments focus on grouping your customers based on the value you get from your product or service. A simple example might be customers who prefer to connect online versus in person. These benefit segments will vary depending on your product or service.
- Offer: This is the most powerful element of your marketing plan. You can design offers that encourage your customers to keep buying. This includes subscriptions, volume discounts, loyalty discounts, etc.
Entrepreneur, if you want to do less marketing and make more money, customer retention should be your first priority. The tips we outlined in this article will help you get started, but it’s important that you make customer retention a priority in your business.
Implementing these tips may take some effort on your part, but the payoff is well worth it.