Ultimate Guide To Learning CRM & Retention Marketing6 mins - Introduction
Over time, the dynamics of businesses have changed drastically. We see both positive and negative changes but something that has changed the most is how businesses operate. This goes without saying that consumers always have been, and always will be, the most important factor for a business. Retention marketing revolves around the fact that consumers are a top priority.
Retention marketing means that you focus on keeping your current customers and consumers rather than attempting to find new ones. This is beneficial in two ways: firstly, it is much harder to get new consumers as compared to keeping your old ones. Secondly, giving priority to consumers you already have increases customer loyalty and saves you from losing customers. Most commonly, businesses use high-quality products and services to keep their consumers satisfied. This, in turn, helps in increasing consumer lifetime value which also helps the business generate more revenue.
If a business starts to focus more on generating new customers, their current customers might feel neglected in the process and they could stop using their products or services. This results in the business losing revenue. Keeping this in mind, smart businesses focus on retention marketing. This also helps in improving a business’s reputation or helps in establishing a good status. The most successful way to work with retention marketing is by establishing a two-way relationship with your consumers. You will look into their interests and their needs using different strategies and statistics. In return, this will increase customer loyalty due to which your consumers will be motivated to give you feedback to tell you what to improve in your commodity or service. This two-way relationship with consumers helps businesses in a very positive way. This way, a business gets to produce what is in demand. This way consumers stay happy and so does the business.
Another highly successful way to engage with your consumers is through personalization. Many successful businesses make sure they add a touch of personalization to their businesses. In fact, in today’s market, consumers demand personalization from businesses. If they are offered services as per their expectations, consumers will stay more engaged and will be more loyal to your brand.
Not so long ago, sales were just about sales. There was no complication seen or felt. The main emphasis was on whether their shelves are being wiped or not. Now, the dynamics have changed. Businesses tend to target their consumers and base their products on their consumers’ likes and dislikes. Businesses cannot just close their eyes and hope for the best to find potential customers. Retention marketing is the complete opposite. Loyal customers are targeted and efforts are made to retain them and keep them satisfied. Today’s technology has made it relatively easy for businesses to find their target market and work towards finding out more. This is the era in which social media algorithms figure out our interests, which makes it an excellent time to approach retention marketing.
The vital goals of retention marketing are simple.
— You have to keep your loyal customers happy
— And you have to encourage them to spend more.
These simple rules are based on paying attention to your customer’s interests and produce things that they would want to spend on. Even though this approach has its share of amazing results, yet it is growing at a very slow pace.
So what are the benefits of Retention Marketing?
Retention is cheaper than Acquisition
No matter what we’re doing, it all comes down to dollar bills. It is widely understood that going the extra mile for new customers is much more costly than retaining existing ones. To further verify this, we have proof of studies. However, it is important to keep in mind that even though retention marketing is cheaper, it’s still harder than acquisition. It requires proper planning and strategies.
Loyal customers give you higher profits
We know that retaining loyal customers is not that costly but what’s even better is that they give you higher profits. Loyal customers will be willing to spend more on your product and more frequently than new customers. They will look forward to new products by your business as well. Despite all of this, never put your customers to a test. Of course, loyal customers are open to higher prices but do not inflate prices to test how much they will be willing to pay you. If you start being greedy then you might end up losing a very loyal customer base. After all, the business’s main aim should be lifelong revenue rather than a temporary increase in profits.
We all are consumers so it’s not very hard for us to think for their perspective. As a consumer, out of all the brands that we use, how many of them make us feel valued? The answer will not be more than one or two. This is because most businesses focus on acquisition rather than retention. If you are a business that uses retention marketing, you automatically stand out in the crowd. There are just a few businesses we can name that truly keep us engaged.
The most important thing in retention marketing is to understand your consumers. It is really important to know them to find out what they like and don’t like. There are a lot of ways to do that. In today’s age, it is not difficult to stay in touch with anybody. Social media is one of the most effective tools for consumer engagement. Moreover, you need to plan and strategize what you want, how you want it and what tools will help you achieve it. You will need to cover all your bases such as your target age, gender, overall target market, and then you will further have to study their interests. This is not at all impossible because the technology available to us nowadays makes it quite simple.
Retention marketing is a strategy that ensures your business does not shut down. The main focus is on the people who already are willing to spend; you just need to keep them happy. This goes a long way and helps you generate a new customer base as well.