Retention marketing is not new, but it does require a little more care and attention. It basically tells us that we should have our best ten brand ambassadors rather than 1000 admirers. It sheds light on how to generate more and more brand loyal customers, as well as techniques for doing so.
Marketing for Retention
Retention marketing refers to the strategies and tactics used to nurture and maintain customer relationships. The goal is to create engaged customers who will return to your store to shop repeatedly.
Retention marketing informs us about the increase in purchase frequency (how frequently a typical customer purchases) and the repeat purchase rate (likelihood a shopper returns). A rise in these two metrics indicates an increase in customer lifetime value (CLV), which leads to increased revenue. Long-term profitability is preferred over short-term acquisition gains.
Retention marketing is concerned with repeat purchases from previous customers. The primary goal of retention marketing is to encourage repeat customers to purchase more frequently and with larger order values, thereby increasing your customers’ lifetime value. Retention acts as a defense mechanism for your brand, whereas acquisition acts as an offence mechanism. The life stage of your brand has the greatest influence on what your retention/acquisition mix should be. Did you begin yesterday? Retention will be useless if you don’t have any customers, so devote your entire effort and budget to acquisition. However, as your customer base grows and your sales increase, you can begin to incorporate more and more retention marketing..
Customer retention marketing isn’t an option for brands; it’s a requirement. Brands’ sales would skyrocket if they spent half the time and energy they put into acquiring new customers on keeping the ones they already have.
Here are some things to keep in mind:
Learn about your clients. The more you know about them, the more effective your marketing will be. Utilize onsite displays such as pop-ups to collect customer data, which can then be used to create more relevant messaging.
Email can be your best friend. Send order follow-up emails, recover abandoned carts, solicit customer feedback, or notify customers of upcoming products, special offers, or sales using email marketing. Consider investing in a loyalty programme. There are point systems and reward tiers in these programmes. Retention Marketing is the new face of bright tomorrow in today’s marketing world.
Prof. Jagruti Gijare