Customer Retention Stats, Studies & Best Practices For 2016

Do you know the value of loyal customers? Have you ever created a strategy built around keeping those customers while maintaining and building your relationship with them? Have you explored a customer retention strategy?

If not, we encourage you to do so. Retaining your current customer base is often referred to as the low-hanging fruit. What do we mean by this?

The fruit that hangs low is easily reachable, and it requires minimal effort to pick it. The same can be said for your current customers. They can be won or persuaded to stick around with little effort. Now, that doesn’t mean no effort.

Because you have to invest a little to get a lot, and we want to help you with your strategy, we’re going to look at customer retention stats, a study and best practices for 2016.

Customer Retention Stats

To drive home the importance of customer retention, here’s a list of stats:

  • It costs 500% more to acquire a new customer than it does to keep a current one. ~Destination CRM
  • It costs 16x more to bring a new customer up to the same level as a current one. ~Marketing Tech Blog
  • It’s cheaper to retain a customer than to get a new one. ~Econsultancy
  • The average repeat customer spends 67% more in months 31-36 of their relationship with a business than they do in months 0-6. ~Bain and Company
  • 47% of customers would take their business to a competitor within a day of experiencing poor customer service. ~24/7
  • 97% of consumers said they are somewhat likely to become more loyal to a company that implements their feedback. ~Apptentive
  • 81% of consumers are more likely to continue doing business with brands that offer loyalty programs. ~Bond Brand Loyalty

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7 Rules of Retention Marketing

Did you know that it is five times cheaper to retain a customer than it is to acquire a new one?

Customer acquisition costs can break a marketing budget, yet many businesses spend more time focusing on attracting new customers than retaining their loyal customers.

That’s a puzzling statistic since one study says if you increase customer retention rates by just 5%, you’ll increase profits by 25-95%.

While we believe in customer acquisition tactics, today, we’re going to give customer retention it’s fair representation. In this article, we look at the seven rules of retention marketing so you can improve your rates and grow your business.

If the words “retention marketing” leave you scratching your head, we’re going to define retention marketing for you first, and then look at the seven rules.

What is Retention Marketing?

In its simplest form, retention marketing is what you do to keep your customers engaged, happy and spending their money.

Sometimes it’s called life-cycle marketing or loyalty marketing,

Retention marketing is a fairly new term, but one that is becoming quite widespread in marketing circles and the realm of eCommerce.

With retention marketing, through various activities, you create engaged customers that return to your online store again and again to make a purchase.

You increase the likelihood that your current customers will purchase again while putting some emphasis on increasing their purchase rate and amount.

Here are seven rules of retention marketing.

Rule #1: Provide Exceptional Customer Service

Customer service can be more important to your customers than the actual product. Consider the customer who makes a purchase on your website.

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The Best Of The Best - Top 5 Email Marketing Tools For 2016

Email marketing is important to your marketing strategy. So important, in fact, we’re going to highlight the best of the best – top 5 email marketing tools for 2016.

First, let’s talk a bit about why email marketing is pivotal to your overall marketing plan.

Benefits of Email Marketing

In an email statistics report from the Radicati Group, we learn that more than 2.6 billion people worldwide use email, and they expect more than one-third of the world’s population to be using email by 2019.

The report goes on to explain that businesses send more than 109 billion emails to their customers daily.

Email marketing is simply one of the very best ways to get in front of your customers. With email, you have the ability to land right in your customer’s inner sanctum.

In an age of ultra-personalization, you can customize your email marketing to your customers’ needs and interests.  You can provide them something of value that they appreciate. This makes your business top of mind when they’re looking to make a purchase.

One of the other great benefits of email marketing is that you can segment your audience into separate lists. This allows you to reach them with targeted content. For example, let’s say you are a swimming pool company, but you also sell grills.

You can send one email to your pool customers and one email to your grill customers.

The other benefit of email marketing is that it’s inexpensive. You can reach a large number of people at a very minimal cost.

Now, let’s look at the top five mail marketing tools for 2016.

#1: MailChimp

The first thing that makes MailChimp the best of the best is their Forever Free Plan – a great tool for small business owners and non-profits.

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3 Words You Should Never Use In Your Email Marketing Subject LineEmail marketing can sometimes seem like a long, winding road filled with road blocks to avoid.

One of the most important, yet difficult road blocks when it comes to email marketing is crafting an effective subject line.

Today, we’re going to help you avoid some of the most common problems when it comes to writing a great email subject line, and we’ll help set your email marketing on the straight road to success.

Let’s look at three words you should never use in your email marketing subject lines. These words are free, cure and credit.

Why shouldn’t you use them? In a nutshell, they can negatively affect your open rates and the actions people take in your emails.

In addition, these three little words can trigger spam filters and get your emails flagged, rendering them undeliverable.

Free, Cure and Credit

Everyone likes something “free,” right? And, who wouldn’t like the “cure” to what ails them or a fix for their credit?

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eCommerce Conversion Rates, Stats & Best Practices For 2016

For those of you who run an online eCommerce site, we bet you’d like to give your sales a lift.

In this article, we’re going to show you some ways to do just that. We are looking at eCommerce conversion rates, stats and best practices for 2016.

First, let’s look at the average eCommerce conversion rates (the percentage of people who take the desired action on your website).

Conversion Rates

According to one source,  the average conversion rates are as follows:

  • First time visitors: 5.10%
  • Repeat visitors: 2.50%
  • Cart abandonment rate: 71.30%

Another source finds that product page conversion rates average about 8%. What does this tell us? It suggests that shoppers are entering websites more often through product pages instead of the home page.

This same study says that the top converting product pages are doing so at a 59% rate, while the bottom brands hover around .10%.

And, yet one more source sites average eCommerce site conversion rates between 2-3%.

While these rates vary a lot, we can point you in the right direction with the following info on conversion rates:

  • 0-1%: Not good. Something might be broken on your site, and you need help.
  • 1-2%: Below average. Check your incoming traffic and assess weak points on your pages.
  • 2-3%: Average. It’s still a good idea to assess problems on your site.
  • 3-5%: Very good. You’re getting somewhere now. Keep working at honing your conversion rate and see if you can leap any higher.
  • 5% and above: You are the cream of the crop. Keep up the good work.

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