How Customer Retention Strategies Can Supercharge Your Marketing
Most business owners concentrate on the acquisition stage of the sales funnel. They keep the objective of marketing activities synonymous with customer acquisition – the act of getting new customers for your business. Retention of these customers is not given as much importance as acquisition.
Customer relationships are what give a business maximum good in the long-run. Here are some of the ways in which customer retention strategies can supercharge your marketing.
1. Maintain Current Customer Base
Customer retention strategies help you to remain in contact with existing customers. These strategies ensure that customers do not feel neglected and do not forget about the existence of your company. These customers can eventually become loyal customers and can prove to be extremely valuable in the growth of the organization.
2. Record Customer Information
With the help of customer retention strategies, you have all updated records of your customers. You have the updated email address, contact number, and other personal information. This information can be used to reach out to the customer in times of a sale, discount offers, new product launches, and more.
3. Customer Referrals
Constructive relationships with existing customers lead to referrals. This is because your existing customer base is really happy with your products and services and is likely to share your company details with their friends, relatives, colleagues and more.
4. Retention is quite economical
Costs and expenses need to be cut down in order to maximize business profits. By focusing some of the sales and marketing efforts towards retention, the goal of lowering expenses can be achieved. Existing customers help to generate more ROI.
In fact, you are expected to spend five times more if you try to bring in new business as compared to dealing with existing ones. Several studies conclude that developing existing relationships is much more affordable because you are aware of the contacts and their information – interests, product preferences, order frequency, etc.
5. Repeat Customers Reap Better Returns
While repeat customers are more economical than generating new ones, they also offer better returns. This is because they are expected to buy more frequently, have a bigger ticket size and help generate more revenue and profitability in comparison to first-time purchasers.
6. Get Positioned as a Consultant
Customer retention strategies keep you in contact with the customer. You provide excellent customer service to them at regular intervals. This establishes your relationship with the customer as that of a consultant or advisor. A trusted service provider is way more important than a brand new organization reaching out to the target customer.
7. Improve Product Offerings
Lines of communication are much better with existing customers than new customers. This makes it easier to discuss sensitive issues and at the same time have access to better feedback. When existing customers tell you how they feel about the product and your services, you are in a better position to create improvements and further develop your product for the target market.
8. Break-through the Clutter
Customer retention strategies help you to stand out from the crowd. Several brands are running around searching for new customers but what they forget is that existing customers help collect referrals, testimonials, and reviews. It is this relationship with the customers that can help to set you apart from all competition.
There are several ways in which the implementation of customer retention strategies can take place. Whichever method you choose for implementation, these strategies will prove to be beneficial for the long-term growth of the organization. They will put you as an industry leader and act beneficial for both you and the customer.