It is a no-brainer that keeping one customer in your company for as much as possible equals to keeping your brand afloat in our turbulent world. Nevertheless, customer retention is the thing many businesses do have difficulty with. Yes, we might put the blame on low purchasing ability of our target audience or some flaws in the work our employees perform, but we’d better concentrate on retention marketing. If it seems gripping and useful to you, stay tuned. You are sure to find something relevant for the current state of your business.
What is Retention Marketing? Why should I pay attention to it?
Basically, retention marketing is the strategy which helps you increase Customer Lifetime Value (CLV). It assists a business with improving both app engagement and business revenue. It is blindingly obvious that acquiring a new customer is far more expensive than keeping a customer who has already paid attention to your brand and bought your services. Apart from that, an “old” customer is extremely loyal to your brand, i.e. less sensitive to price increase and more likely to recommend your product or service to an acquaintance.
Sounds appealing, doesn’t it? Let us dive deeper in the topic and learn how to build an effective retention marketing strategy for your company.
What are the Steps to a Better Retention Marketing Strategy?
Building an effective retention marketing strategy might seem extremely demanding, nevertheless we can divide this complex issue into less intricate steps.
1. Create a detailed User Journey Map. If you want to attract and keep as many customers as possible, you need a high-quality UJM to understand your target audience. This might seem an arduous task, but don’t despair. Firstly, you can ask 4 simple questions to understand your average customer:
1. Who is your ideal customer?
2. What customer’s problem does your ecommerce organization solve?
3. When do they stop using your services?
4. Why do they stop using your services?
When you have answered each of these questions, make the next step.
2. Determine current state of your business. While striving for understanding the degree up to which retention marketing strategies are relevant for your brand, don’t forget to make a cohort analysis and define the current stage you are in. Try to understand what marketing strategies have already worked wonders for promoting your services and those proven irrelevant.
3. Improve first purchase experiences. The most crucial detail about onboarding stage is that your new customer gets support and care from the developers of your platform/ website. Elaborate three vital things for a new-comer:
- A guidance through the initial stages of registration and login;
- Educate your new users on how the platform works, its benefits and tips for an easier use.
4. Analyze the funnels. Getting acquainted with the main sticking points of your app is sure to boost CLV. So, don’t be shy and ask your family, friends and first customers for some feedback. Optimising website’s funnels works wonders for building customer loyalty.
5. Build personalized customer communications. By analyzing demographics, psychographics, technographics and user intent you will inevitably meet all the demands of your customers and give them more personalized services. Apart from that, work on employee loyalty. Never stop praising your employee’s accomplishments, if you are willing to continue collaborating with them. It does improve the service quality and affects customer loyalty as well.
6. Simplify the process of sharing feedback. Conduct in-website surveys on how you can improve the quality of your platform, feel free to ask your customers for suggestions on further improvement. Your current customers are sure to point the right direction for improving your app.
To conclude, retention marketing is an extremely sophisticated issue, nevertheless it does boost CLV, what seems vital for any business. The above-listed 6 steps will definitely help you out here.