Want to grow faster? Retention marketing: a forgotten hero!
Did you know that depending on the sector in which your company is active, bringing in a new customer is 5 to 25 times more expensive than retaining an existing customer?
Another great eye-opener: research also shows that when your customer retention rate grows by 5%, this increases your profit by 25% to 95%! Not surprising when you consider how much time and money you invest in new deals. So, make sure you keep existing customers happy. How retention marketing increases your ROI and what you can do for this, I will tell you in this blog.
Reading time4 minutes
Your customer base is a gold mine
There is a lot of potential in your current customers. Enthusiastic customers share their satisfaction in their network and are the ambassadors for your company.
Warren Buffet puts it nicely:
‘Any business that has delighted customers has a sales force out there that you don’t have to pay. You don’t see them, but they are talking to people all the time.’
But there are other reasons why maintaining your customers properly is a win-win situation:
- Satisfied customers are more open to upsell and cross-sell opportunities. This increases the lifetime customer value.
- Happy customers are less sensitive to prices you use because they know you are worth it.
- They are less likely to switch to a competitor.
So, your current customers are definitely worth going the extra mile for. Time to wonder if you are doing enough at the moment. What are you already doing and what opportunities are there?
Make the effort you put into marketing retention measurable, so you can adjust on results. Set a clear objective in terms of retention. This is possible in terms of extra sales, but also think about the level of engagement you have with your customers. If you do this well, you can eventually make predictions in terms of brand loyalty. This way you won’t be overtaken by events by only reacting if your customers have already vanished.
Getting started with Retention Marketing: 5 tips
Tip 1: Start at the base
Build your brand on clear core values. Ensure that everyone in your organization knows the core values and acts accordingly. It’s the first step to consistently build your culture.
You then build your external communication messages with this. It keeps your internal and external communication aligned. Is this not the case? Then your customers don’t understand who you are, and it will be hard to win their loyalty.
Rightly so. Don’t you have your foundation in order? Then start with this first.
Tip 2: Use social media to maintain your relationships
Find the platforms on which your customers are active and interact with them. Post a nice comment under their update, repost a photo they have made of your product, answer their questions - even if you don’t immediately deliver something. There are plenty of ways to maintain contact with your customers via social media in a fun and easy way.
Tip 3: Create valuable content
Write blogs that help your clients solve problems or issues. Analyse which information or products they need and respond to them via email marketing. Pushing pure content for the sake of distributing some information is of course not the way to go. But make sure you understand what is going on with your current customers, so that you can respond to them and help them. You’ll have happy customers. :)
Tip 4: Organize a relationship event
A relationship event offers so many opportunities in various ways. You can pamper your current customers and bring new products and services to the attention with a fun approach. Make sure it’s a great success and they will automatically share content about your event on their social media.
Tip 5: Create a cool campaign
Set up a cool campaign for your current customers. Reward them for their loyalty, surprise them with something new. And don’t forget the link between online & offline. An offline meeting can add extra strength with an online link, and vice versa.
There is of course much more that contributes to Customer Retention. Think of loyalty programs, community platforms on which your customers get and share valuable information, etc. Ultimately, it is all about knowing your current customer well and how to surprise them. In the end, this will also benefit your acquisition, because you can respond and connect more effectively to the right target group.
Retention Marketing vs. Acquisition Marketing: Play both to dominate the game!
Retention marketing must always be part of your marketing activities. Otherwise, the customers you bring in will walk out as quickly as they came. But retention can’t be the only focus. Below you see a model of HubSpot that gives an indication of the relationship between your acquisition marketing and retention marketing. The more new customers you acquire, the more important the maintenance of those customers will be. Then you will really be making progress!
So, a bit of competition isn’t that bad after all! ;) It’s bizarre how many companies currently let opportunities slide that are within reach. Let’s do something about that…
Back to summary