It’s no secret that acquiring new customers is essential for any business’s growth. But while it is beneficial to focus on high-volume channels like Google, Facebook, and TikTok, this approach can neglect other high-value opportunities like retention marketing.
Retention marketing is extremely important because it fosters loyalty and allows you to win back more of your clients.
Our marketing team at Charisma discusses what retention marketing is, how it works to win back your clients, and how to make it work for you. Let’s dive in.
What is Retention Marketing?
While acquisition marketing focuses on bringing in new leads via social media, organic search, paid advertising, or content marketing, it is important to focus on retention too.
Retention marketing is the process of marketing to your existing clients to generate repeat purchases, increase value, and maintain long-term relationships.
While retention marketing is just one part of a solid overall marketing strategy, it represents an often overlooked and effective way to create loyal clients.
Benefits of Retention Marketing
Retention marketing offers many benefits including:
- Sustainable company growth. Retention marketing lowers costs and increases profits.
- Historical data from clients can help your business make informed decisions.
- Strengthened customer loyalty and more referrals.
- Cheaper cost than acquisition.
Ultimately, retention marketing can help make your company more profitable in the long term and improve your brand image in the eyes of your current clientele; AKA your target market.
Improving Your Retention Rate
Here are some great ways to improve your client retention rate, no matter what industry your business is in!
#1. Adjust Pricing for Existing or Returning Clients
Adjusting your pricing in a way that makes it easy for current clients to return and conduct more business with you is a great strategy.
For example, you could try offering customers discounts via email for their next purchase or service call.
#2. Create a Customer Loyalty Program
Implementing a customer loyalty program is an easy way to build on existing relationships and offer incentives for your clients to return to your business.
For example, you might email your top 10% of clients a special offer each month. You can test which of these offers resonates with your clients the most and fine-tune the rewards over time.
You can also expand your loyalty program by incorporating a points system, which allows clients to earn points for specific actions like sharing your content on social media, or when someone they referred to your company makes a purchase.
The most important thing is to keep your customer loyalty program simple. Make it easy for your clients to both understand and participate.
#3. Build Trust
Creating a relatable brand is the first step in building trust with your clients. Having something in common fosters trust which is the key to building a strong relationship with them.
Use your historical customer data to find out more about your client’s needs and provide them with a positive experience.
When your clients trust you, you don’t have to spend time convincing them to buy your product or use your services.
It’s simple, clients will continue to use your brand if they trust it, and they will recommend it to others too. On the other hand, bad service and distrust will result in them not only finding another company to do business with, but they might also spread the word that your brand is untrustworthy.
When it comes down to it, the goal of retention marketing is to build a long-lasting positive relationship with every client.
#4. Exceed Expectations
These days in our fast moving business environment, customer expectations are at an all-time high. The best way to retain them is to fulfill or surpass their expectations. Commit to what you can deliver but don’t promise them anything if you can’t accomplish it.
Clients feel delighted when they get more than expected.
Suppose your company has a policy that clients will hear back from you within 48 hours, but you respond the same day or within 24 hours. This means that you have over-delivered on what was promised. In this case, your client will be delighted, increasing the chance of repeat sales.
#5. Communication is Key
Developing a communication strategy that allows you to interact with clients across their preferred channels is critical to managing customer retention. This can include:
- Answering their queries promptly
- Informing them about changes, developments, etc.
- Sending monthly newsletters to keep them in the loop
- Sending client update emails for service-based businesses
Doing so makes your clients feel valued and they will continue to use your service or come back to buy your product again and again.
Learn More > How to Foster Customer Loyalty
Win Back Your Clients
Retention marketing starts with providing a great product or service, but it doesn’t end there. The most successful companies consider every step of the customer journey and discuss how to foster long-term loyalty.
Kickstart your retention marketing efforts with the support of our marketing team at Charisma Communications! From customer loyalty programs and thoughtful branding, we will help you delight your clients again and again.
Build trust and gain more client loyalty. Contact Charisma to schedule a consultation today!
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