What Is Retention Marketing?

retention marketing

Last week, we talked about acquisition marketing – the not-so-subtle art of snaring new clients and customers. This week, we’re going to deal with the other side of the coin: retention marketing.

Retention marketing helps you keep the customers you acquire coming back for more, time after time. And that’s a very important thing, because according to Harvard Business Review, it costs between five and 25 times more to bring in a new customer than it does to keep an existing one.

That’s a lot, to say the least.

If you need a bit of help creating loyal, here-for-life customers, add a few of these tips to your marketing make-up.

Keep in Touch

The most important retention marketing tactic is to never let your customer forget you exist.

This does not mean you bombard them with daily emails or repeated phone calls. It means you find a way to offer value that lasts long after a sale.

Do they have a birthday coming up? Send them an old-fashioned snail-mail card, hand-signed by someone on your team, preferably with a discount code inside. Is their warranty about to expire? Offer to renew it at a reduced rate just for being a good customer.

There are plenty of ways to stay top of mind without pushing them to buy something every time you communicate. Get creative!

Reward Loyal Customers

There’s a lot to be said for loyalty where small businesses are concerned, especially because you know that the customer could probably get your goods and services cheaper from a retail giant or national chain. Never miss a chance to reward that loyalty.

Offer points or punch cards, exclusive events for top-tier customers and/or a solid rewards program.

A referral system that promotes both retention and acquisition is also an option you might want to try. When an existing customer brings someone else into the fold, they each get a reward!

Engage on Social Media

If you run a convenience store, you might have the same customers coming in every day for their fountain drink or morning cup of joe. If you run a car dealership, you can go years without seeing the same customers.

And that’s OK, because retention marketing doesn’t necessarily focus on how often a customer makes a purchase; it’s about ensuring that they make the purchase from you every time they’re in need of what you’re selling.

You need a way of keeping in touch with all of your customers, whether you see them every day or every five to seven years. And social media is a great way to accomplish that.

By regularly engaging your audience through contests and giveaways, information on sales and promotions, and just good old-fashioned friendly banter, social media allows you to stay a constant in their life regardless of how often they need your product or service.

Be a Good Business

People are going to return to small businesses who have treated them well. So whatever you do, make sure you’re doing right by your customers.

Treat them fairly. Establish good relationships. Get to know them on a personal level and respond to their comments, questions and concerns. When you’re the small business everyone loves, customer retention isn’t a problem for you anymore!

Ready for Repeat Business?

Both acquisition and retention marketing are important, and you shouldn’t focus on one more than the other. When the strategies work in harmony, you have the best of both worlds!

Whether you’re looking to get more customers or do better at keeping the ones you have, Mischa Communications is here to help. We can get started today!