All businesses want to have both new and repeat users, but acquiring new users is hard and always has an acquisition cost. On the other hand, marketing and selling to repeat users is much easier as they already have an established relationship with the business, leading to lower costs and higher conversion rates.
Retention marketing
Retention marketing is a collection of marketing activities which together have the goal of engaging the existing customer base to increase brand loyalty and motivate them for recurring purchases.
The goal of retention marketing is to have a cost-effective approach and increase customer LTV (lifetime value).
Benefits of retention marketing
Retention marketing has several benefits, but let’s see the primary ones to understand why every business should be doing it.
Cost-effective
Retention marketing is a highly cost-effective strategy, as there are no acquisition costs and the contact details of users are already available. This enables easy promotion through email, SMS, or WhatsApp marketing.
Increases LTV
All businesses work towards having a higher LTV to justify their marketing spend and achieve a higher profit margin from repeat customers. Retention marketing help build loyalty and loyal customers tend to spend more overtime, increasing their overall lifetime value.
Helps in brand building
Repeat customers are also more likely to become brand advocates, spreading positive word-of-mouth and bringing in new customers organically, which can be a great boost for businesses as it doesn’t require any additional effort.
Retention marketing implementation
There are multiple ways to implement retention marketing. You can either use them all together, or just use the ones that are easier to implement. We’ll be going through some of the easier options that every business can implement and yet achieve great results.
Run a Loyalty Program
Implementing a loyalty program is a great way to keep customers coming back and make them buy again, benefiting both your business and your customers.
By creating a loyalty reward system that encourages repeat shopping, you can build strong, long-lasting relationships with your customers. Think about offering benefits like points that can be used for future purchases, special discounts on products or services, or exclusive access to new products and VIP events. These perks help build customer loyalty and keep them engaged, making sure they feel valued and appreciated.
Targeted offers & promotions
Sending targeted offers, promotions, and discount coupons to past customers is an effective way to encourage them to make another purchase and improve brand loyalty. By tailoring these messages to past buying habits, businesses can significantly boost the recipient’s interest and chances of returning.
Most businesses already have customer contact details from past transactions or sign-ups, making it easy to reach them through email, SMS, or WhatsApp.
By sending clear marketing messages via these channels, businesses can efficiently connect with their customers and offer incentives.
Note: Before sending any marketing messages, consider local privacy laws such as the GDPR. You may need to obtain explicit permission to send marketing content.
Collect user feedback
People appreciate feeling heard, and collecting user feedback is one way to achieve this.
Businesses should engage with customers by asking for their opinions on products or services. Survey tools and feedback forms are an option, but beginners can simply use an automated feedback email after a purchase for customers to reply with their thoughts.
Email marketing tools like EmailOctopus can help you start with these kinds of emails for free. Simply set up an email automation and use Google Forms to collect user feedback.
Regular updates
Keeping in touch with customers regularly is the key to building a lasting relationship. Sending updates about new products, services, or industry news helps keep your audience interested and informed. Newsletters, email updates, and social media posts are great ways to stay connected.
These updates remind customers of your brand and provide them with helpful information about what you’re doing. Regular communication helps build trust and positions your brand as a leader in the industry.
Best channels for retention marketing
Choosing the right channels is key to making your retention marketing strategy work. Here are some of the best options:
Email: Email marketing has remained the first choice of many marketers due to its high ROI. It’s also very helpful on retention marketing as it allows businesses of all sizes to send personalised offers, newsletters, and updates right to their customer’s inbox.
SMS/Text messages: SMS marketing is a great choice for time-sensitive promotions or announcements as it has instant delivery and high open rates. It’s a direct line to your customers and works well for reminders, flash sales, and exclusive deals.
Social media: Social media marketing is perfect for keeping a conversation going with your audience. Regular posts, stories, and live sessions help keep your brand in their minds. Interacting with customers through comments and direct messages strengthens your relationship and builds a community of brand supporters.
WhatsApp and similar apps: Apps like WhatsApp offer a personal touch, letting you engage with customers casually. It can be used to send order updates, special offers, or just to check in on how satisfied customers are. These apps often lead to higher engagement.
Conclusion
Using retention marketing strategies helps improve customer relationships and encourage repeat purchased at a low cost.
Use strategies like loyalty programs, targeted offers, and regular updates to increase customer lifetime value and build brand loyalty. Communicate through email, SMS, and social media. These methods not only keep customers coming back but also turn them into brand advocates. Consistently engage with your customers to make them feel valued, which helps create a strong and loyal customer base.
Additionally, feel free to give EmailOctopus a try for all your email marketing needs. It’s free for up to 2,500 subscribers.
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