Is your marketing department ready for 2018? One of the main issues is to determine how much of your marketing budget will be spent on customer retention. Many experts recommend that your company spend at least half of the budget for that. These are some of the main reasons:
- Marketing Tolerance
The only people who really like marketing are loyal customers. In fact, studies show they’re 4x more likely to say they value when a company markets them. They’re also 7x more likely to respond to a brand’s promotions. This highlights the importance of using marketing to boost customer retention.
The key is to get the customers to the point where they value your marketing. that includes various issues like pricing, customer service, value, etc. If you’re able to provide those things then customers will be more likely to keep buying from your business. That said, if you just try to sell them more stuff it will likely have a negative effect. That’s because customers can figure out when you’re just trying to market them.
- Employee Health/Retention
What does your employee health have to do with client retention? When more customers stay with your company it makes life much easier for your employees. That can provide various health benefits and even encourage them to stay with your company. Meanwhile, if your company is going through tough times and customers are leaving the fold it can have a negative effect on those issues.
It can even cost your company in terms of medical costs. When your employees are ill it results in more sick leave, doctor’s visits, etc. Such costs can add up quickly and negatively affect your company’s sales and profits.
- Brand Exploration
One of the main reasons you should spend more on customer retention is so existing customers explore your brand more. Let’s say they’ve made one purchase. It’s important to use up-selling and cross-selling so they’ll consider making more purchase from your company. That helps to boost retention rates.
In many cases your customers don’t know everything your company has to offer. That’s why Pathwwway Panama retention marketing is so effective. The goal is to get the customer to explore your brand. That can encourage them to purchase a higher-end product or even items from other product lines. The key is that customers won’t just keep purchasing the same items but will instead consider other product lines as well.
Is your company willing to take risks in terms of innovation? If you spend more on retention marketing you’ll have more opportunities to do that. That’s because loyal customers are more open to innovation. The key is to focus on keeping your promises in terms of issues like quality and value. If you do that then clients will be more open to innovation. However, the opposite will be true if you don’t spend enough marketing funds on retention.
How much should your business spend on customer retention? The above-mentioned reasons are some of the ones that justify spending at least half of your total marketing budget on retention.