And tips to win in a dog-eat-dog marketing world
Ask business owners what their marketing goals are and typically the answer relates to boosting revenue.
Sure, some might say it’s about increasing brand awareness, attracting new customers, getting more leads and building brand loyalty. But, really, that all ads up to more revenue, doesn’t it?
And what’s one of the most cost-effective but overlooked marketing strategies for boosting income? Customer retention.
Okay, it’s not as glamourous as launching a new product or as exciting as product development, but dollar for dollar, it’s one of the best ways to increase revenue and growth – plus, it’s convenient!
Here are some key reasons it rocks, followed by tips to get your retention rolling.
5 Key reasons customer retention rules
- Profitability. Repeat customers tend to spend more money and make larger purchases than new customers. By focusing on retention, you can increase the lifetime value of your customer base and grow your revenue over time.
- Affordability. It’s cheaper to keep customers than to get new ones. Acquiring new customers can be expensive, whether it’s through advertising, promotions or other marketing efforts. Retaining existing customers, on the other hand, is typically less expensive and can lead to more consistent revenue growth.
- Referrals. Repeat customers = happy customers. And happy clients are more likely to recommend your business to their friends, family and colleagues. This can lead to additional business, and it’s often more cost-effective than traditional marketing efforts.
- Positive reviews. Glowing evaluations can help attract new customers and build trust in your brand. Repeat customers are more likely to leave positive reviews because they’ve had a good experience with your business over an extended time.
- Predictability. Once you understand their needs, behaviours and preferences, you can develop a more effective marketing strategy that targets their specific demands and desires.
Tips for improving your customer retention
So, we’ve shown you the benefits of focusing on retention to build a strong, loyal customer base that will drive your business forward. But how can you improve customer retention? Following are a few ideas:
Get to know your customers. Take the time to learn their names, what they like and dislike, and what they’re looking for in a product or service. This will not only make them feel valued, but it will also give you useful insights into what they want and need.
- Be responsive. Whether it’s through email, phone or social media, make sure you’re always available to your customers. If they have a question or concern, respond as quickly as possible. This shows them you care about their needs and are willing to go the extra mile to help them. Do you have an FAQ section on your website? Do you have product demos? Anything you can do to make their lives easier will be appreciated.
- Have a welcome letter. First impressions matter, so set the tone from the start. Let them know what you stand for and what they can expect. Deliver on what they requested and get them in the mindset to take the next step.
- Offer incentives. Whether it’s a loyalty program, referral program or a special discount, offering incentives for repeat business can go a long way in keeping customers coming back.
- Show appreciation. A simple “thank you” can also make the right impression. Showing your customers that you value their business will make them feel important and more likely to stick with you. So have a thank-you letter ready to fire off at a moment’s notice.
- Be funny. A little bit of humour helps to humanize and build a connection with your customers. A funny meme or a witty tweet can make you and your brand more relatable.
Repeat customers are the bread and butter of any business. Happy customers lead to happy business owners, and who doesn’t love a happy ending?
Need help drafting a welcome or thank-you letter? Want a list of FAQs for your website? Don’t have an onboarding email sequence? We can help! Get in touch today to discuss some customer-retention projects and possibilities.
At Rock.Paper.Copy, our professionals work with you to create high-impact, effective copy and turn browsers into buyers.