Did you know that a retention marketing strategy is trending in 2017? You might be wondering why it’s become more popular this year. There are several reasons based on the benefits of having such a strategy. Some examples are:
1. Loyal Customers
A retention marketing strategy can be effective in keeping loyal customers on board. Why is this important? Studies show that a large chunk of a company’s revenue is generated from a fairly small percentage of customers. In fact, those Pathwwway Internet Gaming loyal customers tend to place more orders and bigger orders as well.
Does this mean you should only focus on loyal customers? It’s important to take steps to retain as many customers as possible and in theory all of them. However, you should certainly keep in mind customer lifetime values (CLVs). Clients who are worth the most to your company should be front and center in terms of your retention strategies. This will help to produce the best results.
Are you keeping your customers happy? If so then there’s a good chance your clients will provide your company with free word-of-mouth marketing through referrals. This can help to get the word out about your company’s brand and products/services. That, in turn, can help to boost leads and sales, which are goals your company definitely wants to have.
What’s the big deal? Studies show that this is one of the most effective types of marketing. That’s because of most of us trust advice and suggestions we get from friends and family. This doesn’t mean there’s a 100% chance we’ll be happy with the products/service. However, it’s more likely. There are exceptions to every rule but it’s quite rare to be led astray by friends/family.
This is easily one of the key benefits of a retention marketing strategy. How much cheaper is it? It really depends on who you talk to. Studies usually report that retention strategies are 5x to 10x cheaper than acquisition strategies. That’s a ton of money! Your company could use the saving for other priorities it has.
That said, remember that you have to spend money to make money. It’s a good idea to invest in both customer acquisition and retention. These are both important to boost your leads and sales. In turn that will make your company more competitive versus rival companies.
It’ might be surprising but only a small percentage of companies believe retention is more important than acquisition. Why is that? Consider that 70% of companies also say that client retention costs less than acquisition. How can your company be more competitive? There are various steps you can take but one of the most important ones is to retain as many customers as you can. If you’re able to do that then you’ll also be able to compete better against rival companies.
These benefits of a retention marketing strategy help to explain why it’s been trending this year. If you don’t have such a strategy yet you should consider creating one as soon as possible. You could be trending!