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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