Is retention marketing the new sales?
The definition of retention marketing is: marketing that aims at maintaining a long term relationship with the client by increasing engagement, brand support, and loyalty to one company or product.
Acquiring new clients is often much more expensive then maintaining existing clients.
Don't confuse retention marketing with re-targeting. That is the red shoes that you've bought online and that will chase you for the next month on all the websites that you visit. So often that you begin to wonder if you've chosen the right color after all...
Focusing on retention marketing doesn't mean that you can forget about acquiring new clients just because retaining clients is cheaper. No growth without new clients! Indeed, the conversion on new clients is relatively low, but you still need them for a healthy growth. I digress...we were talking about retention. What can you do?
Give your client a reason to buy
It works to have a unique product, an extra advantage or excellent client services or return policy. 75% of clients leave an organization due to bad service - and a good review won't make up for that. Long term solutions are key.
Choosing the right moment brings success. Don't call one month before a contract may end, but several months in advance. The client makes up his mind long before the due date.
Don't make them forget you
Some products have a long life. For instance, it takes years before a certain machine needs to be replaced. That shouldn't mean that you give your client the silent treatment. Such a period is too long and the client is easily lost. Introduce a program for your key customers to remain top-of-mind. Small things matter, for instance New Year’s greetings, but also custom solutions and service aspects.
A given advantage is for everybody a reason to choose for a certain product. Instead of the red shoes in the banner, you can offer a red belt, with a discount. Think also about loyalty programs or a return discount for buying additional products.
Make it easy for the client
Introduce a reminder service or a personal online environment for the client with personal tips, wish lists or order history. Or design a special app. Make it easy for your clients to upgrade to a more extensive service.
These tips should help you in retaining existing clients. If you want to hear about solutions that we've provided for others in this realm, please give us a call. You'll always learn something!!