What does customer retention mean?
Retention generally to ‘retain’ anything to possess, control or hold. Retention can be of different meaning in different situations like employee retention and customer retention.
Why Customer Retention is Important for your Business
We need retention marketing in our business it is very essential, our marketing strategies are direct and helps in converting customers but retention helps in more vital part to retain that same customers. We can’t get new customers each single day our success is in retaining our existing customers. It doesn’t mean we have to stop targeting new customers. The cost of marketing and getting new leads is much higher than retaining customers. We need to create retention marketing strategies in our businesses to make new customer acquisitions in generating a high revenue with more clients.
What are the benefits of customer retention?
Customer Retention Over Acquisition
Customer Retention is over acquisition that means your percentage of retaining customers is more than getting a new customer. Your profit increases to 25-95% when you increase customer retention by 10%. Your percentage of retaining old customer is 60-80% and getting new customers is less 20%.
Happy Customers Will Create Growth
Happy Customers will stay with for years and builds a rapport. Connecting to new customers and make relationship is not possible every person. Some are hold back with words, some with works, some with achievement and many more reasons.
Low Cost Marketing is mainly using some tools and techniques to cut the cost of marketing and getting more profits. It is very necessary as you grow in your business. You can automate your business to keep it working and growing.
– Customer Retention Rates – These are the rates calculated by using the Customer Relationship Management (CRM) is a tool that helps to get customer data and identify and respond to their needs.
– Identifying trends and changing your strategy of business execution can help you perform better and make more profit
Find out What Needs Improvement
Constantly checking where your business needs improvement in terms of marketing to retain and get the customers. You must be involved with it all the time to understand more and make valid changes in strategy, plan and execution.
Increasing Return on Investment on what you spend for retaining customers increases every month with the existing customers and new customers our revenue grows from our present stage.
Positive Brand Awareness and Loyalty
The real benefit gives your brand an awareness to the community. The brand awareness is positive to make a mark in the people’s mind. With the regular brand awareness campaigns, our retaining customers are an asset to get more visitors that gradually turn into our customers to increase the loyalty towards our services/products.
How can you do retention marketing?
Track and analyze churn metrics
Tracking and analyzing your results and metrics will help you improve your business. You can understand what changes you need in your business to make a gradual growth. Your churn metrics rate i.e., the total percentage of your customers decrease over the time. For ex: If you have 500 customers and 50 of them leave your churn rate is 10%.
Implement a customer feedback loop
Creating a customer feedback loop is very essential to make your products/services winning.
While your customers use your products, you get several feedbacks positive or negative and responding to them is very importance to the best it can be.
Build Trust with your Customers
Building trust in the business in the authoritative part and very hard job to work for months and years. Once you build trust they will blindly visit directly to you even if there is a lot of competition. Adding value to your content, services and products increases your brand reputation to gain the trust fast.
Offer Unique Services
Offering unique makes you stand out from others. Your idea comes from inside with a story or need of a solution that you want to offer to customers genuinely and it turns your business in an out. Whether be it content, service or products creating unique has always a value and it makes customers to choose you out of hundreds and thousands. With the uniqueness your existing customers not tend to leave you and you will always be in profit.
How to increase customer retention rates?
There’s a reason why we talk about retention rates and not acquisition rates: it’s because we’re really interested in what happens to customers after the initial conversion. Getting new customers to buy is great, but getting them to buy again… and again (and again) is even better. So why are we doing this? And what are the best ways to do it? Let’s take a closer look at some effective marketing strategies for retaining customers and increasing recurring revenue by relying on retention marketing.
How to Build Retention Marketing Campaigns that Scale?
Since using the term retention marketing I’ve started to see it pop up more often. Probably because it’s catchier then the industry buzzword which is churn and burn.
Whether you’re a startup or an established business in a legacy industry, it’s time to start thinking about retention marketing and how this strategy can help you gain more customers.
Retention marketing is essential for every company. The costs and risks of getting new customers are very high, while the cost of retaining existing customers is lower and more predictable. So, by focusing on creating a great experience for your existing customers, you create a network effect as they spread positive word of mouth. Your business will grow faster than you can imagine.
Marketing isn’t as hard as you think. I know, I know… It sounds crazy, but it’s true. Let me explain what I mean using a real-life example that may sound familiar. Over 8 years ago, my best friend decided to get into a business. He decided on his product line and founded his own company selling those products. However, he quickly realized the enormity of marketing and sales this business required. It didn’t take him long to give up because he was overwhelmed with marketing strategy, growth tactics like affiliates and affiliates managers to help him scale his business, setting up a call center, ecommerce website design, SEO / SEM campaigns to drive traffic to sites and on and on…
Now, you might now why customer retention is important for your Business. Without retention marketing, all you have is a great product that goes viral and then dies just as quickly. It’s really a great way to help jump start your business or product. It will help establish your brand and keep people coming back for more.
In a fast-paced online world where one’s attention span is shrinking, it’s imperative that you learn the art of retention marketing and retain the visitors you already have. We’re all busy people, so the last thing we want is to chase after every single potential customer.
Marketing is a vital part of any business, but an often-overlooked aspect is what’s going to happen after those sales are made? That’s why retention marketing is so important: your customers need to feel like the experience they get from you is worth coming back to. Whether it’s offering loyalty programs or incentives, retention marketing is a great way to keep them engaged and happy with your business. By doing so, you’re not only keeping your existing client base happy—you’re also increasing the odds that they’ll come back for more.