What Is Customer Retention Marketing And How Can It Help My Business?

Customer Retention Marketing

Do you want to know what’s better than having a new customer make a purchase through your website (besides having a dozen new customers)? It’s having that new customer turn into a loyal customer who returns to your store and spends their money again, and again, and again. Sounds lovely right? But how can you go about achieving it? Read on and let’s find out…

What is meant by ‘customer retention’?

Customer retention quite simply refers to the (not so simple) metric which measures how loyal a customer is to your brand and business. In order to ensure that a customer continues to spend their money with you in the long-term, there are a number of different customer retention strategies that you can adopt (which we’ll cover shortly).

How can customer retention marketing help my business?

So, why is customer retention marketing so important for your business? Well, it’s all about making as much money out of a single customer as possible.

So, while it never hurts to have a one-off purchase through your website (money is money, right?), it’s even better for business if they keep returning over the coming months and years to buy even more products.

Rather than a one-off $40, that customer turns into $40 per month – indefinitely.

Not only that, but the process of attracting ‘hot prospects’ to your website is actually rather expensive. So, by the time you factor in all of the money spent on marketing, your website, and attracting that single customer, that one-off $40 is actually a much smaller number.

Again, if they keep coming back for more (along with hundreds and hundreds of other successfully ‘retained’ customers, then it will bring excellent value to your business and thus your long-term success.

What are some examples of customer retention marketing?

Now, what does customer retention marketing look like in practice? Here are some examples for you to consider:

  • First impressions: create a solid on-boarding process.
  • Make it personal: speak to the individual as best as you can.
  • Build trust: let them know you’ll never let them down.
  • Introduce a customer feedback loop: the more data you have the better positioned you’ll be to provide even more value.
  • Record all customer interaction in a CRM: this is especially valuable in client-facing industries where consistency of communication is invaluable; for example, an SEO company in Sydney might have a CRM system with detailed client notes such as: “Salesman A tried upsell on xx/xx/xx.” With this information, you can prevent the next salesman from making the mistake of trying to sell the same service again too soon, only to push them away entirely. It can also be used to record personal-touch details such as kids names and favourite sports teams, etc.
  • Email marketing newsletter: all customers who have previously purchased with you and signed up with their email address can be instantly filed into your email list. This is ideal for sending out weekly information, whether it be news, updates, the latest products, life-hacks (e.g., “want to lose weight fast?”) or VIP promo codes and special discounts. This is a highly effective method of nurturing customers and promoting brand loyalty.

Final thoughts: Make it easy for them

The reality is, the majority of people who make a purchase through a website don’t return – not because they are unsatisfied – but because they simply forget. This is why the email marketing / newsletter strategy is a highly popular form of customer retention marketing; because it keeps your brand relevant and under their noses.

If you want to keep those customers loyal and forever hungry to spend their money on your awesome products and services, you should make it easy for them! There are so many methods you can try and by finding the perfect combination for your business, you will see a considerable increase in your annual revenue!

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.