Retention marketing is a strategy that markets to existing customers. It is also known as “re-marketing” or “retargeting”.
You may already be familiar with retargeting – maybe you’ve seen ads for products on Facebook that you browsed on Amazon.com? Retention marketing takes those strategies one step further with the goal of encouraging an already-existing customer to take a certain action, like purchasing a product or spreading positive word-of-mouth.
It’s also called churn-free marketing since the goal is to prevent people from churning (or leaving). Data show that retention strategies are up to 6X more effective at increasing profits in the long run. Over time, you’ll start thinking of your whole business as an ecosystem—everything connected together.
Marketing to existing customers is a crucial phase of the customer lifecycle. The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.
This is where retention marketing comes in; it focuses on creating strategies and driving tactics to prevent churn and increase loyalty.
What You Need to Know About Retention Marketing and the Influence of Lifetime Value
This can be done through a variety of methodologies, all designed to give customers a memorable experience and keep them coming back.
Combining retention marketing tactics with other methods of generating leads can help to create new customers, which is often referred to as “win-back” or “upselling” marketing.
Businesses are always in pursuit of growth, constantly looking for ways to improve their economic and financial results. Customer retention is a powerful tool that can boost your business over the long term.
Here are two simple strategies and tactics you can deploy in 2022 for greater customer retention.
Two Boosting Retention Strategies for 2022
1. Engage customers with user-generated content. Start generating UGC after a customer buys a product. A customer’s delights is at its highest when they buy a product.
User-generated content is 42% more effective than branded content and has 6.9x higher engagement rate than your own branded content.
- Choose social networks most impactful to your campaign
- Tell your audience what content you want
- Focus on community through transparent collaboration
- Don’t forget to measure your UGC efforts
According to the State of UGC 2021 Report, 93% of markers agree that consumers trust content created by customers more than content created by brands.
2. Use Zero-Party Data to improve the customer experience. You can collect zero party data from reviews and attribute checkboxes customers can click when they share their experience with you. Different types of zero party data you can collect by industry.
- Athleisure – Size, height, and performance
- Beauty – Age, skin type, skin tone, and skin concerns
- Home and Accessories – Use, reason for purchase, age
- Food and Beverage – Favorite product, drink, how customer drink their shake
Collecting zero party data gives great insights into your customer’s wants and needs. Customer retention has become a top-of-mind business issue. Staying abreast of customer behavioral data, while creating hyper-personalized interactions across multiple channels, is the key to increasing retention.
In conclusion, retention marketing is a quest for continuous customer satisfaction. It’s about treating every customer like an individual with specific tastes and interests. Internet marketers are shifting their focus from acquisition to retention because they are well aware of the fact that their customers can be kept longer and delighted on multiple occasions. They know that putting the focus on creating personalized interactions with the customer leads to a better customer experience. That, in turn, will lead to increased customer satisfaction.