7 Rules of Retention Marketing

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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5 Customer Retention Strategies To Keep Your Customers Happy

5 Customer Retention Strategies To Keep Your Customers Happy

For many years, companies have spent the majority of their marketing budgets and marketing manpower on customer acquisition. They thought that if they could only reach more people, they would sell more.

Today, as studies abound on the Internet, companies have powerful data to back up the importance of customer retention. To that end, businesses across the world are focusing their marketing efforts on how they can motivate their customers to return again and again.

In today’s article, we’re going to introduce you to five customer retention strategies to keep your customers happy.  Content customers are motivated to purchase again, and they’re more likely to be ambassadors for your brand.

#1: Communicate Frequently

You’ve probably heard the term, “top of mind.” To retain your current customers, you have to stay at the forefront, so when they’re ready to purchase, it’s you they think of.

One of the best strategies for staying in touch is through your email marketing and blog posts full of tips and tricks. Personalized marketing that provides valuable content at the right time is key to relationship building.

Content really is king – when it adds value to your customer’s life. With your blog and email marketing, you provide actionable, engaging and often highly entertaining information to your customers.

For example, let’s say you are a real estate company. You might provide 10 tips on how to stage your house for the sale. This is a great blog post published in the spring as homes start to hit the market. This also indirectly promote your services.

Your customers will remain happy and stay engaged when you provide the personal touch and targeted information.

#2: Reach Out Using Automation

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How To Use Automated Email Series To Increase Customer Retention

How To Use Automated Email Series To Increase Customer RetentionDid you know it costs you more to obtain a new customer than it does to retain a current customer?

In fact, 70% of businesses in one study say it’s cheaper to retain a customer than acquire a new one. They also say they get a better return on investment when they do the leg work to build a relationship with their customers.

You’ve probably heard the term “low hanging fruit.” This is a thing or person that can be won, obtained, or persuaded with little effort.

The low hanging fruit, or customer, is the place to start when it comes to increasing customer retention. It is much easier to create and nurture loyal customers than it is to get a brand new one.

In this article, we look at how to use automated email series to increase customer retention. First, let’s talk a bit about retention.

What is Customer Retention?

For your business, customer retention means the number of customers that come back and purchase from you again and again. Its direct opposite is customer churn – this is the number of customers who don’t buy from you consistently.

Customer retention hinges on several key factors:

  • It’s important to attract the “right” customers. This is your target customer – your ideal. The right customer has more potential to stick around.
  • The first activation is integral. By this, we mean encouraging your customer to take the desired action on your landing pages. Initially this may not mean they actually purchase something from you. It is simply the first action they take with your business. This activates them on their buying journey.
  • Follow up is also key to retaining customers. This is where lead nurturing and automated email is at its best. You want to do your best to spend time building a relationship with your customers to maximize retention.

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How Does Your Bounce Rate Match Up to Others in Your Industry?

Bounce rates are inevitable. Every website has people who come, look around for a second or less (literally), and leave. However, some industries have better bounce rates than others. And not all websites within each industry fare as well as the best, or even average.

Product Information Pages

Image via Flickr by Gustavo da Cunha Pimenta

This includes comparison sites, tech information, and more.

  • Minimum Bounce Rate – 3.24%
  • Maximum Bounce Rate – 50%
  • Average Bounce Rate – 33.03%

Have you ever looked for information on a product? There is a lot of information on these sites, and because of that the bounce rate tends to be significantly lower than other types of websites. Comparison charts and interesting information, as well as tips and tricks, will keep people interested and your bounce rate down. Continue reading “How Does Your Bounce Rate Match Up to Others in Your Industry?”