Brands creating effective marketing campaigns will find that they have more than double the chance of selling to an existing customer, compared to a new lead. And, according to the Harvard Business Review, "Depending on which study you believe, and what industry you're in, acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one." Yet, only 32 percent of executives say that retention marketing is something they prioritize.
The buyer’s journey does not end with a purchase. Brands that see the most growth understand that following a purchase, organizations must then convince customers to buy from them again. These repeat customers not only build revenue, but they help to spread the word about the company.
For anyone interested in building a customer retention strategy, come explore the value of these repeat customers as well as the type of content that interests them.
The value of building relationships with existing customers
The customers you have already converted continue to hold tremendous potential for your organization. Compared to a new customer, a returning customer will typically spend one third more with your company. That explains why increasing the number of customers you retain by just 5 percent can then increase your profits by as much as 25 to 95 percent. Taking the time to invest in retention marketing and can result in tremendous growth for the organization.
Keep in mind also the importance of recommendations and reviews. Ninety percent of customers have reported that they like to read reviews that people post online before deciding to visit a business. Nielsen has also reported that recommendations from friends and family members remain the most trusted form of advertising.
Customers who have had positive experiences with your organization offer you prime opportunities to solicit reviews on popular sites, like Yelp or Google, to increase your visibility.
Retention marketing involves knowing what existing customers want to see
Customers who have spent time investigating their potential product decisions want to know that they have made the right decision. They want to see a positive ROI. This becomes particularly important as you approach opportunities to sell to a particular customer again, such as when a contract needs to be renewed or a product repurchased.
The content produced for retention marketing, therefore, needs to focus on helping customers get the most for their purchase. Tips for using the product optimally, ideas for new ways to use the product, or even formal research about the ROI the specific customer has received from their purchase can provide immense benefits. Consider Moz's pro academy, for example. They have a suite of information designed specifically for their existing customers to help them improve their usage of their platform.
There are a variety of different forms of content that organizations can use to help with customer retention.
Create how-to videos that show customers how to use the product or service to maximize their benefits. Tricks and tips can help them improve their own ROI while also boosting your reputation as an organization that really cares about your customers.
Email offers an easy way to remain engaged with existing customers. Expressing appreciation for their business, sending out material designed to help them get more out of their purchase, and keeping them updated about news and developments can keep them interested. Letting customers know that the brand cares about them can boost their user experience as well.
You can also produce a variety of types of written content for your customers. Lists of tips, reports on their personal ROI, case studies demonstrating the success others have seen in similar situations, and information about the development and goals of the organization can all help customers feel more engaged with the material and community.
Creating positive experiences
As you begin to build content for retention marketing, remember that building a positive user experience should be the cornerstone. Eighty-two percent of American consumers say that they have stopped buying from a particular company because they had a poor user experience. Overall, 71 percent of customers are lost because of poor service. Ensuring that customers have a positive experience when they buy from your company will help you with customer retention.
Remaining engaged with your customers can help guide you through this process. Speak with your existing customers and customer service team to learn more about the common questions that arise and the troubleshooting tips often needed for new purchases. This can help you create content users will genuinely appreciate.
As customers move through the buyer's journey, it is easy to think about the purchase as the finish line, but that is not accurate. Existing customers require just as much content effort as new prospects. Retention marketing can provide brands with a gold mine of revenue, ready to lead the organization forward.