Much of the conversation, strategies, and focus of digital marketing is based on acquiring new customers, but any good business knows that customer retention is just as, if not more, important. If a bird in the hand is worth two in the bush, your digital marketing strategy should place a premium on keeping the birds you have.
Read on to discover why it is so essential to implement a customer retention strategy for your business today…
What do we mean by a customer retention strategy?
Customer retention refers to the number of customers that stay with a business within any given period of time. For example, you may wish to know what percentage of customers that signed up with your SEO company in Brisbane remained clients after one year, two, five, and so on.
In digital marketing, your customer retention strategy is where you tailor your marketing toward your existing customer base. You work to encourage them to buy from you again, to stay signed up for emails, and stay in touch. This can lead to deeper engagement, and an increase in loyalty and is a fantastic way to gain repeat sales from customers you know have bought from and enjoyed your brand before.
Why is it important?
You need a successful customer retention strategy for many reasons, including the increase in value it can offer to your customers and the oh-so-important benefit of increased profits. Loyal customers are far more likely to buy from you over and over again and also to make larger purchases than one-off buyers.
Some of the other key reasons to focus on customer retention include it:
Builds brand loyalty
Building brand awareness is one thing. Building brand loyalty takes far more time and effort. Focusing on your existing customers and their wants and needs will secure that loyalty far faster than if they think all your attention, your offers, and deals are only for new customers.
- Improves customer satisfaction
Your customer retention strategy will place a premium on your current customers meaning that any complaints and issues will be dealt with. Further, you will have increased engagement and communication, which leads to greater happiness and satisfaction, which can lead to more sales.
Happy customers are also more likely to recommend you to a friend and leave a glowing review. Brand loyalty doesn’t just win you one sale; it can also help you find new customers.
Saves on new acquisition costs
Finding new customers and persuading them to enter your sales funnel, carry out actions and make purchases can be far more pricy than reaching out to the customers that you already have. There is a huge variance based on your industry, but studies show it can cost far more than 5 times the amount to find someone new than to keep a current customer.
All of these are just some of the reasons you should strive to keep your customers first before working on enticing new ones in. Brand loyalty, the promise of future business, and the savings you can make all mean customer retention should be the top focus for you and your digital marketing company today.