While customer acquisition and customer retention are two of the most essential arrows in any business’s arsenal, which of the two is more important?
Though acquisition seems like the obvious answer, retention is far more important. Retention marketing is an initiative undertaken by a business to augment customer value, build brand awareness and engender brand loyalty. Customer retention marketing strategies are effective ways to ensure customers keep coming back, resulting in continuously greater ROI. Not to mention that customer retention is far more cost-effective than customer acquisition and retaining a customer not only results in an increase in the brand value but also decreases overheads! This blog elucidates the importance of retention marketing strategies and the most effective ways to undertake a retention campaign –
- Facilitate Customer Registration on Your Website –
To begin with, allow customers to create their personal accounts on your website so that each time they wish to make a purchase or simply add something to their cart for future reference, they wouldn’t have to spend time filling in all their details from scratch. For example, Amazon autosaves the personal and shipping details of all their customers and allows the user to choose to autofill those details for future transactions, making it a quick, simple and convenient process for the customer. Moreover, the data recorded on your website will also be useful in reaching out to your prospective leads, understanding your customer persona and creating targeted marketing campaigns for them for optimum conversions.
- Build a Customer Loyalty Program –
Customer loyalty programs are a vital facet of customer retention marketing. Rewarding your loyal customers for their continued support not only goes a long way but research also shows that over 70% of consumers are more likely to recommend a brand if it has a good loyalty program! Most of these programs are designed in a way wherein the more your customer engages with your business, the more they are rewarded. This adds to the customer’s overall shopping experience and makes them feel valued. Some examples of loyalty programs include rewarding your customers with points for every purchase, assigning positive labels to them like a premium or a VIP customer, providing them with early or exclusive access to your sales before other customers, surprising them with freebies, etc.
- Consistent Communication –
Next, understand that if a customer has subscribed to your email newsletters, blog updates or followed your page on social media platforms, it means that the customer is interested in keeping in touch with your business. Hence, ensure that your communication strategy is powerful, intriguing, in alignment with your brand values and most importantly, resonates with your audience. Sharing timely updates via email marketing is one of the most rewarding modes of communication. Every customer touchpoint is an opportunity to earn the trust of the customers, nurture the relationship, establish a positive brand recall value and foster conversions. To learn about actionable email marketing tips to maximize your ROI, read this.
- Leverage Personalization –
One of the most important elements for a successful retention campaign is personalization. Simply greeting your customers by their name can considerably enhance their experience and increase the chances of them interacting with your brand. Be sure to take a personalized communication approach toward your audience. You can also segment your customer base into different groups based on the stage of their ‘buyer’s journey’ or their last purchase and send them targeted emails containing product recommendations, offers and deals tailored to their preferences. The more segmented and personalized your approach, the more you will be able to make connections and strengthen the relationship with your customer base.
- Capitalize On User-Generated Content –
Yet another effective strategy is to capitalize on your user-generated content i.e. honest reviews and testimonials about the brand and product shared by customers themselves! Nothing earns credibility and helps build trust like sharing user-generated content on your platform. With 82% of consumers checking online reviews for local businesses, it is critical for every business to highlight their positive testimonials across all their digital assets. Providing such social proof is a definitive way to earn trust, promote new launches and convert your leads into sales. To learn about social media strategy guidelines to boost your e-commerce business, read this.
- Provide Exceptional Customer Service –
Last but not the least, the key to retention marketing is to provide an exceptional customer service experience. While your primary focus should undoubtedly be to deliver quality products or services to your customer, providing seamless customer service support must definitely be next on the list. This includes being present on the most convenient channels for the customers (eg: phone support or live chat) and being prompt, considerate and honest in your approach towards their requirement.
For further support to grow your business, our team at Parkyd Digital is available and happy to help you. With a deep understanding of the digital marketing landscape and over a decade of industry experience, we offer holistic marketing solutions that are customized according to your requirements to effectively boost your ROI and achieve your business goals. You can get in touch with us here.