Retention marketing is the process of keeping and maintaining custom.
There are different types of retention in business. Staff, investor etc. But today, we’re talking about customer retention.
The act of retention marketing is any efforts carried out to ensure customers re-engage with your business.
You can form and use customer profiles to better understand which of your customers you should be trying to retain, for some excellent results and ROI – but we’ll come on to that further down.
If your aims and objectives as a business owner are to increase sales, grow your business and form loyal relationships with customers because you understand that that’s where the longevity is in maintaining and building profits, keep reading.
How to carry out Retention Marketing
The first retention scheme which generates profits and are – usually – successful are loyalty schemes.
With retention marketing, merging retained customers into loyal customers should be one of the main aims. A retained customer is a customer who has bought from you once and will consider buying from you again if they haven’t already.
A loyal customer though is someone that has gone past the point of retention. They now hold your brand in high regard and would shop with you over competitors any day.
This is because time after time you’ve offered them solutions to their problems. Discounts on special occasions and they’ve continued to choose you over competitors. To gain loyal customers you will have also provided excellent customer service (which can be the make or break of your retention scheme).
So, back to loyalty schemes. You may have heard of these before. The Tesco Clubcard. The Nandos Chillies Card and even McDonald’s Monopoly.
You don’t have to sit and think of a jaw-dropping idea or an economics-based food-incentive game to succeed in retention marketing and building a loyal customer base. It can be as simple as offering 50% off a product or service on someone’s birthday or printing loyalty cards so that the customer gets a stamp each time they buy with you then receive a free service at the end.
Creating a loyalty scheme for your brand could be that missing piece of marketing you need to retain customers, boost profits and have your brand reputation heightened!
Another way to carry out retention marketing is as said previously; excellent customer service.
Customer service is so much more than responding to a complaint about a faulty product. It’s everything before, in-between and after that stage ensuring that you and your customers have a positive relationship.
Take yourself away from counting profits and strive as a business to offer excellent handling of customers questions, queries and complaints in every aspect of your brand.
Whether that being speaking to your web developer so that your website runs smoothly and customers are having a positive and optimised selling experience once they’re on your site. Or sending drop-in email to ask if they’re enjoying their product.
When you’re doing these things, you’re not only boosting your chances of gaining loyal customers, but you’re gaining feedback which can make your business run better.
What does a better run business mean? Higher chances of profits.
If customers tell you that the website loads slow, you now have the information to act on the situation. If a customer loved their product and they’re extremely happy, but didn’t know where to leave a review but now, with your new retention scheme, they can because in your drop-in email you provided a link, you’ve just given your brand a positive boost in the right direction. Leading to an increase in sales and positive experiences.
Retention Marketing, why do it?
The image below suggests that “Selling to existing customers is easier than selling to new customers. Brands have a 60% to 70% chance of selling to an existing customer versus only a 5% to 20% chance of selling to a new customer”. Why is that?
Well, when a customer has purchased from your business previously the customer now understands that you’re a trustworthy and reliable brand.
Trust is everything when it comes to marketing, especially digital marketing, so if you’ve already had a successful customer journey, we would advise keeping them on board and making every effort to retain them as a customer and convert them into loyal customers.
Illegitimate businesses are abundant in today’s digital society, first instance trust is hard to come by.
Conversion rates are higher for existing customers because you’ve already established a trusting relationship. Customers are likely to increase their spend next time, tell their peers and after multiple successful purchases, become loyal brand advocates for your business.
Ensuring customer retention: The Customer Journey
There are a handful of different stages in which customers will funnel through when shopping with a brand. Retention marketing can be applied to each and every one.
The first stage is the awareness and discovery stage. When a customer becomes aware of your brand via advertisements, social media marketing and/or word of mouth, you must be meeting the aims and objectives of your campaign right away. Getting straight to the point to earn custom.
In the second stage, the interest and consideration stage, your business should ensure there’s all of the information available so that the customer can make the conscious decision to proceed with the buying process or not. Are you better than your competitors? How? Flaunt reviews and testimonials and ensure your website is optimised!
In the third stage, retention marketing comes into place when a customer decides to purchase. To retain customers and provide them with a fantastic selling experience, so that there’s a chance they will return and meet those odds, you must adhere to all customers needs.
Needs as in, providing on-trend payment additions such as Klarna and/or up-to-date payment gateways such as Apple Pay. This will increase the chances of sales.
Fourthly, it’s the aftercare and support stage of the customer journey. This stage is particularly important because if you’ve offered an as expected journey until now but a customer who has spent their hard-earned money on your service has an issue, every effort should be made to help.
Emails thanking customers for their service should be sent along with accurate delivery updates and a request for a review (which you can recycle and use for the interest stage).
If it’s a digital service, offer links to how-to articles and/or YouTube videos.
Next, it’s the loyalty and re-purchase stage, the stage which may seem the most obvious among all the previous.
Here, after a customer has gone through a successful customer journey, you should offer loyalty schemes for continuity. Re-post their reviews and tag them on social media to grow relationships online further. And, Send helpful and informative marketing emails, using selling techniques such as cross-selling and up-selling to provide them with more areas of your business’ service.
Now, after all of these stages within the customer journey, it would be wise to turn this customer into a loyal advocate for your business. Going the extra mile and offering rewards for recommendations to peers could be the difference between an above-average ROI or an impressive quarterly ROI.
How do you know when your Retention Marketing scheme is going well?
Successful retention marketing looks like, great customer reviews on review platforms. Customers choosing you over competitors. Higher profits than when you weren’t so particular about retention marketing and a more refined, successful and streamlined way of doing business.
For precise and successful results when it comes to retention marketing, think about creating customer profiles based on who your customers are. By understanding these demographics, you can alter your marketing schemes to fit perfectly for them. Where it will almost be impossible for them not to acknowledge your brand.
Use tools and online software such as Google Analytics and your businesses CRM system to gather these profiles. Or read more, here.
The Conclusion to Retention Marketing
With retention marketing, you’re not only listening and acknowledging the science behind selling patterns, but you’re making essential decisions to maintain the growth of your business.
Need more advice, website optimisation or other ways to boost sales for your business? Visit Noisy Elephant. Experts in all things digital development and marketing.