As the holidays approach and businesses start to turn their attention to the future, those who are hoping to get a leg up come 2018 are already planning out their strategies. For many business owners this can be a stressful time as you try to decide on the right approach that fits your goals.
Today we are here to make the case for why customer retention should be at the center of your 2018 marketing strategy. As many businesses can attest, making customer retention marketing a focus can improve both customer engagement and your bottom line. Don’t believe me? Let’s take a look.
Customer retention is cost effective
To begin, one of the most sited stats about customer retention is that “it costs five times more to keep an existing customer than acquire a new one.” Now while this may not be 100% accurate (some studies show it is even more!), the basis of this statement is true. Customer retention is a cost effective way to keep your business going.
One thing we will say about customer retention is that even though it is cost effective, it is definitely not an easier solution. Customer retention strategies can be difficult to implement and might take a time to be able to see results. But trust us when we say that it will be worth it.
Loyal customers boost your bottom line
The next reason why you should consider customer retention marketing for your business is the boost to your bottom line. That’s right, not only is customer retention more cost effective than acquisition, it’s also more profitable. In fact, by simply reducing churn rate business owners have been able to increase profits by as much as 95%!
Not only that, but if you are able to keep your customers engaged, engaged customers are known to buy 90% more frequently and spend 60% more per transaction. With statistics like this, it’s a wonder why everyone hasn’t gotten involved with custom retention already.
Good customer retention speaks volumes
Not only will focusing on customer retention in the new year help you with current customers, but it can help attract new ones too. Just think about the brands you interact with on a daily basis and think about why you choose them. After all, there are countless companies out there all vying for your business, what makes your choices different?
According to user engagement metrics it would seem that companies that value their customers are the ones on top. Consider Amazon, the retail king, who made their fortune by simply focusing on customer service. Happy customers are more likely to recommend you to their friends, just another reason why a focus on customer retention can be incredibly beneficial.
Engaged customers tell you what they are thinking
Another cornerstone of customer retention marketing is customer feedback. After all, the best way to know what your customers are thinking is simply by asking them. Additionally, engaged customers are more likely to give you valuable feedback, especially if they see it as a way to help improve service.
In 2017, more customers than ever have started asking brands to conduct feedback surveys via SMS marketing. This makes sense when you think about. Customer surveys on traditional websites can feel clunky and take more time than expect, while SMS gets right to the point and makes it even easier to respond.
Consider adding SMS marketing to your retention tool belt to keep your customers engaged and glean valuable insights from their engagement and feedback. Most brands drop the ball here simply because they don’t use the tools they have available, so get ahead of the competition by taking the initiative.
Customers will trust and explore your brand
As you continue to develop a relationship with your customers through different customer retention techniques, the more they will come to trust your brand. Once they trust your brand, they will also start to explore it. This means that they will start to seek out your help with other services and solutions.
This is what will turn a good customer retention marketing plan into a great one: being prepared to meet these customers. When customers begin looking into additional services provided by your company, meet them with offers based on their past work with you. If you are able to tailor their choices to fit their needs, you are that much more likely to continue working with that customer.
Loyal customers are more forgiving
Unlike a business driven by customer acquisition, one that focuses on retention has more wiggle room. By investing in your customers, your customers will feel like they are a part of your business and won’t jump ship at the first bump in the road.
This also means that you can try out new marketing campaigns and tricks with loyal customers to see how they work. Unlike with customer acquisition, marketing this way brings down the risk-factor and can lead you to new insights.
Get more customer insights with analytics.
One word of caution in regards to customers being forgiving: there is only so much wiggle room. While you should always be trying new things, there is only so much that you can throw at a customer before they will leave. Simply don’t take them for granted and you will be fine.
Customers will welcome marketing efforts
The final reason why you should consider customer retention for your 2018 marketing plan is that loyal customers will welcome your marketing efforts. This is the brilliance of customer retention. As you continue to build rapport with your customers, the easier it will be to reach them with marketing messages.
This is why mass text marketing and push notifications have become popular for customer retention purposes. It’s all about letting customers know that you care enough about them to treat them right and provide value wherever you can. Do this and worrying about churn rate will hopefully become something you leave in 2017.
We hope that this article has inspired you to get started with customer retention, but it also begs the question, “why wait?” You have everything you need to get started today, so why not get started asap? The sooner you get started, the sooner you will be able to make a difference for your company and in the lives of your customers.