If general marketing is about turning consumers into customers, then customer retention marketing is about maintaining that customer relationship. As a result of new technologies and intense competition for customers, the past few years experienced a boom in customer retention techniques. In the ecommerce industry, such ongoing marketing is especially important. Ecommerce companies by nature compete with the entire globe. They also lack the physical presence that could take advantage of foot traffic sales.
Defining Customer Retention Marketing
The customer retention definition is quite simply any form of after-purchase marketing designed to continue the customer relationship. The goal of such marketing is primarily to encourage new purchases from the customer. Secondarily, after-purchase marketing can also help to build customer loyalty and generate new customers from word of mouth recommendations. While these techniques are very similar in form to all other methods of marketing, they are different in terms of the target audience and goals.
Example Strategies of Customer Retention
The customer retention process has many facets and forms. The first steps of customer retention marketing begin during the actual purchase. Data collection efforts provide insights into the customer and are used to build a comprehensive profile. Including multiple points of contact for the customer also allows extended opportunities for client interactions. Each of these communications can help to extend customer loyalty and ongoing purchases for your company.
Examples of customer retention marketing include:
- Thank you text message sent to the customer immediately following the purchase.
- Monthly E-newsletter to customer email address covering the best practices of other clients.
- Quarterly webconferences describing new service offerings, product research, and allowing a live question and answering period.
Why Customer Retention Is Vital
The benefits of customer retention are numerous, although the results can vary based on a number of factors. The biggest advantage of customer retention efforts is an efficient return on investment. Marketing to the public means spending money and time attempting to reach people who may never be in the market for your products. Focusing on existing customers taps into a potential market proven to result in real sales.
Customer Acquisition and Retention Strategies
Customer retention strategies in crm include some of the same tactics used to lure customers initially. The main difference is that the messages during acquisition were made to build and confirm the relationship. After the customer has enough trust to make a purchase, the marketing tools are adapted to serve as customer retention tactics. For example, cold marketing emails become reminders to update to newer products or restock on products by setting up subscriptions.
Keeping the Customer Loyal
Customer loyalty strategies are as diverse as there are customers. Some customers only care about the bottom line. For them, you may need a process to reward frequent customers with discounts or complimentary services. Other clients value the opportunity to assist in the development of new products and services. Those customers would appreciate feedback mechanisms that allow them to provide suggestions for product improvement.
Dealing With B2B Relationships
B2B customer retention strategies can be a bit trickier. Individual consumers have a variety of reasons why they might seek eCommerce products. Businesses on the other hand, almost always want something that will enhance their operations in specific ways. Accordingly, B2B retention strategies involve making sure your products and services help your customers achieve their goals. Most importantly, since each customer defines their goals and the relevant benchmarks, communication is key.
Customer Retention With Services
Customer retention strategies in service marketing can be more complicated than selling physical products. If your online business sells t-shirts, for example, it may be easier to send regular updates with new t-shirt designs. Customer retention with non-physical products often involves soliciting customer involvement in testimonials or focus groups. The idea is to continue selling the customer on the idea of a joint partnership toward their success.
How Malomo Can Help
Malomo is a well-integrated shipment tracking application. Ordering products over the web can be treacherous for first-time customers. Problems during shipping can often reflect poorly on your business, even if the fault lies with the delivery service or other entities.
Malomo can help you develop positive customer retention strategies by providing a means of improving the product delivery process. Your customers will have a simple method of tracking packages and receiving updates about any issues. You will have a way to target your retention marketing messages to customers from purchase through delivery.