Customer retention is the foundation stone of any digital marketing strategy!
But, how to develop an incredulously smart customer retention strategy? To get into the nitty-gritty of how to create a powerful retention strategy, we need to first answer the following questions:
What customer retention exactly is?
Why is customer retention important for your business?
How does a perfect customer retention strategy look like?
Let’s get started:
There is interesting data — you need to know ~
Decreasing the cost of your business by 10% is equal to increasing customer retention by 2%?
While attracting new customers is important, you should not put the idea of retaining your existing customers & building loyalty on the shelf.
It can bring you way better results — sometimes better than what running towards new customers would do.
What is Customer retention?
You guessed it right — customer retention is the ability of an organization to hold on to its customers for a longer period of time. Customer retention is calculated in the percentage of customers retained over a period of time (given).
There are two important factors that impact customers retention —
- How many new customers you have acquired within a given period of time.
- How many customers have left — canceled their subscription, closed their contracts & are not buying any more.
Why is customer retention important for your business?
The customer is the foundation stone of any business! You still exist in the market as a reputed brand because customers have been coming back to you for all these years. It is not just that they bumped into your online shop or an offline store and since then it’s like a habit for them.
Rather, it is your persistent attempt to satisfy them and their needs — that your customers have always loved coming back to buy their favorite products from you. So, it is only you who can retain your existing customers and keep multiplying them.
We must also mention here that customer retention is way more cost-effective and it multiplies to bring more customers — as compared to acquiring new customers. And, if you are working on your customer retention strategy just to increase it by 5%, you’ll have your company’s revenue increased by 25-95%. Customer retention can shoot up your ROI to a surprisingly higher level
Here’s how customer retention can help your company grow:
- It’s Cost-effective
Acquiring new customers is way more expensive than retaining your existing customers. It costs you almost five 5-25 times higher expenses to be done to acquire new customers as compared to retaining the existing customers.
- More referrals possible.
When your customers are satisfied with your services & they have had a good experience — they will for sure refer your services to a bunch of their family members & friends who further refer it to their friends. This way you build a chain and you’ll keep on acquiring more and more customers without having to spend anything.
- It improves ROI
Your company’s revenue increases by almost 25-95% just by increasing customer retention by 5%.
- You Earn Loyal Customers
With customer retention, you earn loyal customers who will buy more than new customers. They already know about your services and they will like to buy from you rather than any other store they have no idea about. They are like a family to you! Value them.
Pay attention to your Customers Retention Strategy.
So, with better ROI, reduced budget, better referrals, & better chances of selling your product better — customer retention is one of the best ways to grow your business. You can create a workable customer retention plan and use different techniques to make sure that your business gets the most out of it.
Remarketing is one of those techniques, you can make use of to retain your existing customers & bring them back to where they have left for one or other reason. At AdMedia, with remarketing we’ll help you bring those shoppers & reconnect with them via strategically positioned ads. With these remarketing ads, you can keep reminding your existing customers about your new OFFERS who have not shopped in a while for some reason.
Improve your ROI, bring more & more customers with an improved remarketing & better customer retention strategy.