The Ultimate Retention Marketing Guide: Lifelong Customers

Retention marketing is something every business should strive for. Once you’ve invested time and effort into acquiring a customer, it makes sense to make every effort to keep them. After all, customers who have already bought from you or transacted with you are much easier to persuade to make another purchase than those who haven’t yet. According to the Harvard Business Review, it costs 5 to 25 times as much to acquire a new customer as it does to retain an existing one.

It’s surprising, then, that most marketing teams prioritize new customer acquisition over retention. Acquiring new customers is good, but retained customers make the balance sheet happy. As Adobe CEO Shantanu Narayen says, “If you’re not retaining customers even at your current profitability rates, you have to run faster, faster, faster to keep acquiring new customers.”

What is retention marketing?

Retention marketing is the art and technique of retaining customers who have already bought from you. They took that first big step and invested some of their precious funds in your product or service. Now, it only makes sense to see if they will go further with you instead of wandering elsewhere. Repeat customers almost always buy more from a company over time, leading to lower operating costs, and most importantly, satisfied customers are more likely to refer you to others. In fact, 92% of consumers trust referrals from people they know more than any other form of advertising.

On paper, this all sounds like a given, but so does the numbers. "A 5% increase in customer retention can increase profits by more than 25%," says Fred Reichland in Bain's Prescription for Cutting Costs report. In reality, that profit increase can be as high as 95% in some cases. Companies that make an effort to retain their customers benefit greatly from the process. Additionally, another Bain study found that loyal customers spend 67% more in months 31-36 of their relationship with a company than in months 0-6, highlighting the compound value of retention efforts.

"Chick-fil-A has mastered the economics of loyalty so effectively that it can afford to pay restaurant operators two to three times the industry average and still donate 10% of profits to charity." Fred Reichland

It makes sense to have a customer maintenance strategy, but few companies do it. The reason is that most of the time is the natural customer. These companies believe that what they provide is correct and is an appropriate product for customers (after all, they purchased it once).

To know how many retention users are, how they are retaining, and how the retention marketing strategy is doing well, what indicators are tracked and how to act based on them. It will be squeezed. The metrics that are ideal for retention marketing will be explained later, but it is better to start with AARRR or experimental metrics. These indicators are blue photos for tracking business looking for growth opportunities. Companies that ignore these are sacrificing themselves. PRICE has wisely states that only 1 % improvement in profit creation and retention will affect two to four times more revenue than improving acquisition by 1 %.

6 Benefits of Retention Marketing

Behind the retention marketing is more than a direct revenue. That may be enough for some people, but behind the retention marketing, there are more benefits than direct revenue.

Increased Revenue and Profits

Maintain customers and increase more profits.

It is important to acquire new customers to grow, but maintaining existing customers is the key to increasing sustainable profits and profits. According to a Harvard Business Review survey, if the customer maintenance rate increases by 5 %, profits will increase 25 % to 95 %.

It’s Easier

The current customer base is easier to sell than new customers.

Jill Griffin said in his book that "the probability of selling something to prospects is about 5-20 %, while the probability of selling something to existing customers is 60-70 %." There is. Companies are more likely to be successful if they sell to existing customers.

Retained Customers Keep Coming Back

The more you buy, the more likely you will come.

Once purchased customers may buy again. If you come back to the store (that is, if you become a retention customer), the possibility of purchasing the third and fourth time will be even higher. And the future.

Lower Acquisition Costs

Existing customers have low cost. It makes sense to have a customer maintenance strategy, but few companies do it. The reason is that most of the time is the natural customer. These companies believe that what they provide is correct and is an appropriate product for customers (after all, they purchased it once).

To know how many retention users are, how they are retaining, and how the retention marketing strategy is doing well, what indicators are tracked and how to act based on them. It will be squeezed. The metrics that are ideal for retention marketing will be explained later, but it is better to start with AARRR or experimental metrics. These indicators are blue photos for tracking business looking for growth opportunities. Companies that ignore these are sacrificing themselves. PRICE has wisely states that only 1 % improvement in profit creation and retention will affect two to four times more revenue than improving acquisition by 1 %.

Increased Customer Lifetime Value

Behind the retention marketing is more than a direct revenue. That may be enough for some people, but behind the retention marketing, there are more benefits than direct revenue.

Maintain customers and increase more profits.

Fuels Word-of-Mouth Acquisition

It is important to acquire new customers to grow, but maintaining existing customers is the key to increasing sustainable profits and profits. According to a Harvard Business Review survey, if the customer maintenance rate increases by 5 %, profits will increase 25 % to 95 %.

The current customer base is easier to sell than new customers.

Build your customer referral program without the dev time

Jill Griffin said in his book that "the probability of selling something to prospects is about 5-20 %, while the probability of selling something to existing customers is 60-70 %." There is. Companies are more likely to be successful if they sell to existing customers.

7 Retention Marketing Strategies for Your Startup

The more you buy, the more likely you will come.

Personalized Deals

Once purchased customers may buy again. If you come back to the store (that is, if you become a retention customer), the possibility of purchasing the third and fourth time will be even higher. And the future.

Existing customers have low cost. It makes sense to have a customer maintenance strategy, but few companies do it. The reason is that most of the time is the natural customer. These companies believe that what they provide is correct and is an appropriate product for customers (after all, they purchased it once).

To know how many retention users are, how they are retaining, and how the retention marketing strategy is doing well, what indicators are tracked and how to act based on them. It will be squeezed. The metrics that are ideal for retention marketing will be explained later, but it is better to start with AARRR or experimental metrics. These indicators are blue photos for tracking business looking for growth opportunities. Companies that ignore these are sacrificing themselves. PRICE has wisely states that only 1 % improvement in profit creation and retention will affect two to four times more revenue than improving acquisition by 1 %.

Exclusivity

Behind the retention marketing is more than a direct revenue. That may be enough for some people, but behind the retention marketing, there are more benefits than direct revenue.

Maintain customers and increase more profits.

Email Marketing

It is important to acquire new customers to grow, but maintaining existing customers is the key to increasing sustainable profits and profits. According to a Harvard Business Review survey, if the customer maintenance rate increases by 5 %, profits will increase 25 % to 95 %.

The current customer base is easier to sell than new customers.

Referral Marketing

Jill Griffin said in his book that "the probability of selling something to prospects is about 5-20 %, while the probability of selling something to existing customers is 60-70 %." There is. Companies are more likely to be successful if they sell to existing customers.

The more you buy, the more likely you will come.

Build your customer referral program without the dev time

Jill Griffin said in his book that "the probability of selling something to prospects is about 5-20 %, while the probability of selling something to existing customers is 60-70 %." There is. Companies are more likely to be successful if they sell to existing customers.

Exceptional Customer Service

Existing customers have low cost.

According to the Saasquatch data, the acquisition of new customers is costly, and the cost of B2B and B2C companies has increased by nearly 50 % in the past five years. In contrast, maintaining existing customers is much less expenditure to advertising, sales, and marketing activities. According to a FORRESTER survey during the 2008 financial crisis, acquisition of new customers was more than five times more expensive than maintaining existing customers.

People who have purchased in the past are more likely to consume more next time.

Organizational Focus on Retention

According to MONETATE's survey, e-commerce customers have purchased many times are more than five times worth the customers they visited for the first time. By focusing on retention, you can maximize the value of each customer who has struggled and acquired.

If a satisfactory customer continues to purchase, the customer is the most likely group to introduce new customers.

Focus on Customer Lifetime Value Metrics

Retention marketing does not directly acquire new customers, but is a powerful wor d-o f-mouth marketing that promotes referrals. According to Nielsen's data, 92 % of consumers trust their friends and their families rather than marketing in any other form. The more you maintain your customers, the larger the brand supporters' corps.

Register as a free trial of Growsurf to reduce customer acquisition costs, increase customer loyalty and save time.

Everyone acknowledges that retention marketing is reasonable. Over time, examine individual strategies, how they will affect your business, and the most important thing is what benefits they will have.

The 4 Types of Retention Marketing Campaigns

When someone gets into your business, they want to do so at the individual level. I want to be talked to each person, talk to a real person, and be cherished by your business. Nobody wants to feel that he is just a book.

Encourage people to return to your business by conducting a shor t-term, personalized, personalized campaign. Coupons not only work as incentives (just visiting and browsing websites), but often buy impulse. Research conducted by Coupons. com and Clairmont Graduate University has shown that when a customer receives a coupon, an oxytocin reaction (a medicine of happiness created by the body naturally) is triggered.

• Amazon is famous as a personalized transaction user, sends e-mails that track recent browsing history, and sends products and recommended products based on purchase history.

• Everyone prefers to be a member of the crowd, and thus feels important. The monopoly uses the sensation by providing promotion, discounts and offers in a way that only certain customers (especially selected customers) can participate. Many companies develop this feeling by creating loyalty programs and membership platforms. Participating in these programs will make customers buy them again from your company with many times the probability.
• Looking at the monopoly from the viewpoint of the B2B, companies provide wholesale prices for their products in exchange for a greater discount, and specially selected "partners", which were specially selected before going to the popular market, are monopolized. You can also consider participating in the product. By connecting such a contract for a limited quantity or for a limited time, companies can also use the rarity principle. The rarity principle (another of the principles of Dr. Caldini's persuasive) is based on human needs to not want to miss a chance, and is known as FOMO (Fear of Missing Out).
• E-mail marketing is a difficult strategy to use in modern marketing. Nevertheless, if people can position them as companies and brands that they want to contact, the opening rate and interaction rate will be much higher.

Measuring the Success of Retention Efforts

As usual, it is important to provide value. Even if you send an email full of sales and explanations of products and services, it will not reach anywhere. On the other hand, reading the recently published articles is really useful and valuable for them.

The essence of referal marketing is to encourage you to return to your business so that you can introduce new prospects. If the current customer actively participates in the referral system, the customer will be a retain customer. It is extremely unlikely that they will buy a different product from the destination they have introduced. < SPAN> Amazon is famous as a personalized transaction user, sends e-mails that track recent browsing history, and sends products and recommended products based on purchase history.

• Everyone prefers to be a member of the crowd, and thus feels important. The monopoly uses the sensation by providing promotion, discounts and offers in a way that only certain customers (especially selected customers) can participate. Many companies develop this feeling by creating loyalty programs and membership platforms. Participating in these programs will make customers buy them again from your company with many times the probability.
  • Looking at the monopoly from the viewpoint of the B2B, companies provide wholesale prices for their products in exchange for a greater discount, and specially selected "partners", which were specially selected before going to the popular market, are monopolized. You can also consider participating in the product. By connecting such a contract for a limited quantity or a limited time, companies can also use the rarity principle. The rarity principle (another of the principles of Dr. Caldini's persuasive) is based on human needs to not want to miss a chance, and is known as FOMO (Fear of Missing Out).
  • E-mail marketing is a difficult strategy to use in modern marketing. Nevertheless, if people can position them as companies and brands that they want to contact, the opening rate and interaction rate will be much higher.
  • As usual, it is important to provide value. Even if you send an email full of sales and explanations of products and services, it will not reach anywhere. On the other hand, reading the recently published articles is really useful and valuable for them.
  • The essence of referal marketing is to encourage you to return to your business so that you can introduce new prospects. If the current customer actively participates in the referral system, the customer will be a retain customer. It is extremely unlikely that they will buy a different product from the destination they have introduced. Amazon is famous as a personalized transaction user, sends e-mails that track recent browsing history, and sends products and recommended products based on purchase history.
  • Everyone prefers to be a member of the crowd, and thus feels important. The monopoly uses the sensation by providing promotion, discounts and offers in a way that only certain customers (especially selected customers) can participate. Many companies develop this feeling by creating loyalty programs and membership platforms. Participating in these programs will make customers buy them again from your company with many times the probability.
  • Looking at the monopoly from the viewpoint of the B2B, companies provide wholesale prices for their products in exchange for a greater discount, and specially selected "partners", which were specially selected before going to the popular market, are monopolized. You can also consider participating in the product. By connecting such a contract for a limited quantity or a limited time, companies can also use the rarity principle. The rarity principle (another of the principles of Dr. Caldini's persuasive) is based on human needs to not want to miss a chance, and is known as FOMO (Fear of Missing Out).
  • E-mail marketing is a difficult strategy to use in modern marketing. Nevertheless, if people can position them as companies and brands that they want to contact, the opening rate and interaction rate will be much higher.
    • As usual, it is important to provide value. Even if you send an email full of sales and explanations of products and services, it will not reach anywhere. On the other hand, reading the recently published articles is really useful and valuable for them.
    • The essence of referal marketing is to encourage you to return to your business so that you can introduce new prospects. If the current customer actively participates in the referral system, the customer will be a retain customer. It is extremely unlikely that they will buy a different product from the destination they have introduced.
    • Creating a solid referral program will not only have a program that encourages new customers to purchase products and services, but also leads to existing customers. The trick is to launch a program as soon as possible (to maximize potential engagement) and make sure that the introduced system is so robust that you can expand as your company's growth. There is no doubt that it is worth investing in professional systems such as the introduction software provided by Growsurf. According to Bain and Company's survey, the average first buyer will introduce three on the website, and after purchasing 10 times, the average buyer will introduce seven.

    Key Takeaways

    Register as a free trial of Growsurf to reduce customer acquisition costs, increase customer loyalty and save time.

    • If you value the customer, you will visit as many times as you want. That's why TGI Fridays welcomes customers in professionals and actively sing Happy Birthday. This is a wonderful customer service for the TGI Friday version that hopes you will come back in the future. As described in the customer services, 68 % of customers leave when they think they are indifferent to themselves.
    • When cooperating with other companies, this appears in various ways. In a physical area, you can get customers, eat a good restaurant, send thanks letters and presents, and check the customers in good faith without pressing sales. In the digital area, they are supported and help pages, along with personalized communication and sel f-service options. According to MONETATE's survey, 78%of shoppers will follow the offer only if there is an offer that has been personalized in past exchanges with brands.
    • Customers need to answer their questions themselves and feel that someone will support them if they cannot answer. This can be performed through telephone lines, physical existence, or live chat. There are countless ways to provide customer services, but dedication is required to provide excellent customer service.
    • The retention marketing strategy is as easy as giving priority to your business and reconstructing to focus more on maintaining customers. As mentioned at the beginning of this article, many companies do not prioritize customer maintenance. Increasing retention to marketing hierarchy can automatically extend numbers.

    Build your customer referral program without the dev time

    Jill Griffin said in his book that "the probability of selling something to prospects is about 5-20 %, while the probability of selling something to existing customers is 60-70 %." There is. Companies are more likely to be successful if they sell to existing customers.

    

    Elim Poon - Journalist, Creative Writer

    Last modified: 27.08.2024

    In this article, you'll learn all there is to know about customer loyalty and retention, including benefits, implementation, and strategies. Retention marketing is a cost-effective way to improve customer loyalty, boost revenue, and foster a positive brand image. By focusing on retention, businesses can reduce marketing and sales costs while maintaining revenue. Increased lifetime value: Loyal customers.