Tag: retention

Retention Marketing And Your Online Business – A Match Made In Heaven

Retention Marketing And Your Online Business - A Match Made In Heaven

Keeping the customers you have today has never been more important for your online business.

While finding new customers and growing that side of your business is terrific, keeping your current customers and increasing their loyalty is cheaper for our business in the long run.

We’re going to look at retention marketing and your online business. They are a match made in heaven, and we’re going to explain why.

First, let’s look at some statistics on the importance of retention marketing.

The Value of Retention Marketing

If you’re one of the many businesses not currently working to retain your existing clients, we’re going to provide you a few reasons why it’s time to refresh your marketing strategy.

Here’s a few reasons why retaining current customers is “better” for your business than acquiring new ones.

  1. A 2% increase in customer retention has the same effect as decreasing costs by 10%.
  2. Acquiring new customers can cost nearly five times as much as making your current customers happy.
  3. About 80% of your profits will come from just 20% of your existing, loyal customers.
  4. If you reduce your customer defection or churn rate by 5%, you’ll increase your company’s profitability 25-125%!
  5. Nearly 70% of your customers will leave your company because they don’t think you really care or because you provided poor customer service.
  6. Companies that prioritize customer service generate 60% more in profits than their competition.
  7. When customers are happy, they will tell nine of their friends about it. On the flip side, when customers are unhappy, they’ll tell 22 of their friends.

Now that we’ve solidly convinced you of the importance of retention marketing and your online business, let’s look at some tactics that work. Continue reading “Retention Marketing And Your Online Business – A Match Made In Heaven”

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.

Continue reading “7 Rules of Retention Marketing”

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

Continue reading “5 Customer Retention Strategies To Keep Your Customers Happy”