Retention Marketing. How to keep customers?
How to allocate the advertising budget? What is more important: to retain and save old customers or to attract new ones? Attraction marketing is about creating interest and motivation for the first purchase, while retention strategies are aimed at loyal customers and stimulate repeat transactions.
Betonlogos company marketers analyzed that the average cost of attracting a customer online has grown from $9 in 2013 to $33 in 2024, that is, by 266%. Retention marketing is the strategies and tactics used to develop and maintain relationships with customers. It is 10 times cheaper to return an old customer than to attract a new one!
A regular customer is more likely to make purchases from you again and again. Therefore, it is important to stay in touch with them all the time. Regular communication is primarily newsletters, information about product range updates, new products or services, invitations to events and promotions.
Maintaining customer interest in the brand and strengthening their commitment is helped by:
- Loyalty programs create a sense of value and specialness (being chosen)
- Personalized newsletters and exclusive offers for regular customers
- Reviews and recommendations, collecting opinions and direct communication with customers in messengers help track the reaction not only to the purchase, but also to current events
- Offering an inexpensive product (tripwire) in addition to the main line of promoted products motivates the customer to quickly make a purchase decision.
Loyalty Economy
While a business is thinking about how to attract new customers, the old ones are leaving. Without even realizing it, a customer who knows the store becomes its unspoken popularizer and promotion tool, working for the company's reputation. He can leave reviews, recommend the store and the product on social networks.
Regular customers:
- Less sensitive to price
- Willing to pay more, because they already know who they are dealing with
- Do not ignore new products
- May not pay attention to product shortcomings
- More likely to forgive random/infrequent service shortcomings
- Require less spending on marketing, advertising, promotion
- Have fewer complaints and claims
- Leave reviews
- Answer questions from other customers
- Promote the brand
Retention Strategies #1. Regular Communication
40% of a business's profits come from repeat customers. These 40% come from just 8% of all customers. An active presence in social media and online space allows companies to retain customers and maintain a dialogue with them.
The following work well for customer retention:
- Online community is a place for communication, sharing experiences and feedback (threads under posts, forums, blogs)
- Publications of useful content and advice (blogs, social networks)
Retention Strategies #2. Social Media and Online Presence
A satisfied customer is a loyal customer, one who does not go to a competitor and brings in profit. But what a customer needs to be satisfied depends on his needs. Is it possible to buy loyalty with discounts and promotions? Some believe that it is impossible. But! If the customer's main need is to save money, then discounts and the offer of affordable analogues are the main tools.
You need to monitor market trends, competitors' offers, to be aware of new customer requirements and expectations. Quick responses to customer questions and requests, solving emergency issues, responding to complaints, providing advice and support - all this helps strengthen the connection with customers and creates a positive experience.
- Referral programs stimulate regular customers. What you offer the buyer must be valuable, unique, unusual and high-quality. This can apply to both the product and the service.
- Training programs and master classes strengthen the connection with the brand, the seller and his store
- Constantly updating the assortment encourages return, maintains interest
Retention Strategies #3. Quick response to customer, market, and competitor needs
Using CRM systems allows companies to effectively manage customer relationships, store information about them, analyze data and provide personalized service. Integration of CRM and analytics systems allows you to track the customer's path from the first contact to the transaction.
- Regular surveys and feedback: help to understand the needs and preferences of customers, businesses use them to improve service and retain customers.
- Employee training and development, an important element of the customer relationship management strategy and the formation of their positive experience
- Responsive and prompt support service is a key element of the customer relationship management strategy
Retention Strategies #4. CRM
Betonlogos s.r.o. helps customers and partners automate routine business processes. To optimize supply chains and find new suppliers, Betonlogos Czech Republic specialists develop programs:
- Social media monitoring (Facebook, Instagram and Twitter)
- Brand/company/name loyalty and awareness monitoring
- Analysis of consumer perception of new products
- Customer retention marketing
Retention Strategy #5. Betonlogos Monitoring Programs
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