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Retention marketing is a simple concept that many new businesses can overlook. The idea that you should keep looking to expand your potential customer base is a sensible one, but not when it gets in the way of keeping your existing customers happy.
Where Do We See It
Every one of us will have experienced a company employing a retention marketing strategy, whether online or in retail. The most popular way companies do this is by sending personalised content offers via email newsletters. This is a good way to engage with your audience, but it’s important that the customer doesn’t feel like the company is simply spamming their inbox. When this happens, your attempt to show the customer your appreciation has turned into an annoyance for them. At this point, they might decide to cancel any email subscriptions they have to your site and you risk losing contact with them.
Take advantage of information like their order history and personal information (their age, gender, and where they live). The latter can be particularly controversial, but consider it in more practical terms. Some products are more likely to sell to people of different ages, for example. This is crucial to providing offers the customer will actually be interested in. To encourage repeat spending, companies also employ loyalty schemes, most commonly in some form of “points” which can be used to reduce the price of other products.
Why Small Businesses Should Care
For small businesses, especially, retention marketing should be a core concern. If you can’t afford to pay for nationwide advertising or celebrity sponsors to get your brand out there, you should instead focus on improving the experience for your existing customers. This makes basic financial sense, as it’s estimated that the cost of keeping an existing consumer is a tenth of the cost of trying to acquire a new one.
How Can You Take Advantage of It
Businesses new to this area should consider taking advantage of companies that specialise in improving brand awareness. Companies like Phorest could get you started by implementing the technology needed to effectively engage with customers via social media, or create an app that provides consumers with conveniences like notifications on the state of their orders.
Remember that the internet has made the world a much smaller place than before. People like to talk, and word of mouth can play a big part in attracting new customers to your business. Sometimes the simple things like listening to what customers are looking for are the best strategies to a successful business.