Retention Marketing: You’ve probably heard that achieving success is hard, but maintaining success is even harder. Did you know that this logic of the business world also applies to your customer base?
The increasing focus on relationships and identification between brands and customers makes retention marketing a key strategy to consolidate a company’s position in the market.
But what exactly is this concept? Why and how to invest in retention marketing for your business? This post tells you everything you need to know about it. Check out!
What Is Retention Marketing?
When we think of marketing, the first idea that comes to mind is the effort to attract new customers through the journey of discovery, consideration, and purchase decisions. But why not also work to win back those customers who have already gone down this path?
Retention marketing is a set of attraction and dissemination practices and strategies specifically aimed at already converted customers. The idea is to take advantage of this experience and an existing connection with the brand to further evolve this relationship toward loyalty.
Because it starts from a different point of view than a common market lead, retention marketing calls for its planning, with its content, interactions, and arguments, to convince those who have already purchased to repeat the dose.
Retention marketing emerges as a crucial option for financial sustainability and growth within a market perspective for the future, in which the focus on niches and a greater connection between the brand and the public grows.
What Are Your Benefits?
So that you better understand this relationship and the importance of retention marketing for the future, let’s analyze the practical benefits of this strategy to your business. Follow along.
Achieving Long-Term Business Results
The main point of retention marketing is to extract the maximum relationship and revenue potential from each customer conquered by the company.
In other words, investing in this plan means consolidating medium and long-term results to ensure a healthy customer base in the future.
Loyalty today should be treated as a priority because it brings exactly this positioning of a brand with competitive differentials. The larger the loyal base, the more this business becomes attractive to other audiences.
Decrease In CAC
A very interesting point to be analyzed about retention marketing is its financial gains on two sides: increasing revenue with more sales while having less effort to make them.
This is related to a very important indicator in the digital scenario: the Customer Acquisition Cost, or CAC. This metric indicates the amount the company needs to disburse for each new sale.
And that cost is always tied to the length of a leaf’s journey to conversion. It takes more time and resources to attract a person from the start who has yet to discover the brand, relate to it, and consider their options.
Retention marketing works with customers who have been through all of this. They already know your company, your products, and your buying process. Therefore, convincing them to buy again is much faster and cheaper than capturing leads from scratch. Of course, always consider a balance between these two very important sources of sales.
Strengthening The Relationship With Customers
Retention marketing isn’t just there to increase sales—although that’s its primary purpose. Creating exclusive content and special campaigns for existing customers makes the brand more familiar, with a deeper emotional connection.
It is the habit of current customers to choose the products they consume not just by price but by the values and identification they create with the brands.
Retention marketing also has the power to strengthen your image for customers. Increasing loyalty, yes, but also creating spontaneous promoters and advocates for your company.
Greater Knowledge Of Your Audience’s Loyalty Profile
It is interesting to point out that retention marketing is a two-way street. In addition to making already converted customers reconnect with the company, you are also collecting more and more information about them.
This allows you to extract more relevant data about audience profiles and personas that best fit your ideal consumer profile. Thus, retention marketing becomes the source of strategies for other sectors, such as customer service and sales.
Predictability For Future Investments
If retention marketing decreases CAC and increases loyalty, it gives your business greater peace of mind to plan for the future.
Mainly when it comes to retail, the market varies a lot for less prepared businesses, depending on the season and the economic scenario of the market. Having strong marketing for loyalty means keeping invoicing all year round. This makes it easier to project in the medium and long term and set up investment schedules for the future.
Sustainable Growth
A business that brings its customers closer and keeps them for longer has revenue predictability and knows its audience in depth has everything to consolidate itself in the market.
It’s a sustainable and efficient way to grow: you need less and less effort to scale your customer base. Of course, more than retention marketing is needed to guarantee this success. But it’s an important step to give your foundation for growth.
What Points To Observe In This Strategy?
After analyzing all the benefits retention marketing brings to those who invest in it, it’s time to start thinking about implementing the strategy in your business.
But, before going to practice, it is important to raise some points of attention that need to be observed so that the planning has the effect you expect in the public’s loyalty. See what they are.
Customer Profile
When discussing retention marketing for loyalty, we must remember that only some customers react to the same type of content and interaction with the brand. For each profile, each target audience expects a different type of approach and has different habits for recurring purchases.
That’s why your client’s profile will say a lot about how your strategy should be developed. It’s no use, for example, to be insistent in offering a product that people naturally buy more widely. This relationship between expectation and strategy is one of the secrets to your success.
Retention Cost
Even if the CAC is reduced, it is important to remember that retention marketing should be treated as a separate strategy within digital marketing. That is, it will generate costs to guarantee results. Therefore, make a point of separating a budget so you don’t waste money on inefficient executions.
Need For Constant Innovation
Taking the hook from the last topic, we want to reinforce that the practices we will present below differ from a one-off plan in your company. Retention marketing needs to be continuous and constant to bring robust results.
After all, the audience itself is always on the move. Their habits change, new generations enter the market, and new interaction channels become popular.
Also Read: How To Use Data Analysis For Marketing In Your Company?
