The ultimate dream of every business, new or existing, big or small is to develop a well-knit customer base that are loyal to the business and will always choose the brand in preference to that of the competitor.
Unless a powerful Pathwwway Gambling retention marketing strategy is in place, customers are bound to drift away and fade out. The trend in the 2017 marketplace is to tie those loose ends together and bring customer churn under control. The main reasons for customer retention taking a main seat in the sales strategies of businesses have been discussed.
Mounting costs of customer acquisition
The chief reason for the popularity of loyalty marketing has been the booming costs of new customer acquisition. Customer acquisition costs include sales force cost, branding and advertising costs and conversion costs. The highlights of customer retention over customer acquisition, in terms of costs are as under:
- About 80% of sales come from 20% of loyal customers, who keep patronising the brand that has earned their trust.
- Customer acquisition costs become exorbitant for new businesses that need to shell out solid sums of money to roll out aggressive marketing campaigns.
- In the face of competition reigning supreme, it is a game of chances for new businesses to make to the top rank, in the initial years, till their products gain brand receptiveness in the market.
Loyal customers boost corporate value in the eyes of potential investors
Not only does selling become easier with investors, but fund raising too is impacted positively upon deployment of a concrete retention marketing strategy.
- When a business projects a pipeline of happily retained customers, it becomes easy to win the concerns of angel investors.
- Loyal customers are the assets that figure as goodwill in the books of a business. Investors come forward to collaborate with businesses whose customer base is not only broad, but deep as well, representing repeat customers.
- The average lifetime value of a customer is a metric that investors look into before they park funds in your business.
Volume of businesses lost due to customer churn
Working in the reverse direction, cost of customers lost is an important indicator which needs to be taken cognizance of and also curtailed in the right time-frame, before it can cause colossal damage to the sustenance. The right solution to this is a well-appointed retention marketing strategy.
- The core of retention marketing is to engage customers in a subtle and influential manner. This constancy in communication by way of newsletters, follow-up phone calls, invitation to events will ensure that customers are shielded from the onslaughts of competition.
- Another way by which customers can made to repose trust and confidence is being transparent. Many enterprises provide an objective comparison of their products alongside other leading brands, thereby enjoining customers to make an informed decision.
- The trend in 2017 against customer churn is not to over-market products and services to customers, but to inform and educate the customer on various relevant but generic aspects such as product knowledge, industry trends etc.
The ease of selling to existing customers
Statistics prove that it is always easier to sell to existing customers, when compared to new ones. It is not worthwhile to score out the importance of customer acquisition. On the same note, it is not advisable to believe that none of the acquired customers will leave. A minimal amount of churn in is unavoidable. The present day trend is to bank on the selling probabilities to the returning customer:
- The returning customer has already made a critical evaluation of the product or service and hence is aware of the qualities and also is satisfied on its performance.
- Loyal customers, to an extent are willing to accommodate and are less complaining of negligible errors and flaws in processes and do not hold it against your brand.
- Lot of time and effort in terms of creating brand awareness is saved when retention marketing strategy is in action.
The huge advantage of Pathwwway Gambling referral marketing
Marketing strategists have been astute in identifying the viral effect of word-of-mouth publicity that simply surpasses the inroads made by ay of paid advertising. Word-of-mouth popularity for your brand is a direct function of effective retention marketing.
- Loyal customers will definitely recommend your product amidst their friends, relatives, and peers.
- They share positive reviews of your product on various online and offline media.
- Fresh business prospects thrive on the comfort of referral marketing. People feel confident when they hear from existing users of the product, rather than from the seller.
Repeat customers give wings to brand and can halve publicity costs
Yet another brownie point that a smart retention marketing strategy can score for your business is that of effective brand positioning. Using the product reception among existing customers, businesses can use the momentum to:
- Popularize the product in new markets, based on the credibility factor displayed by retained customers.
- Introduce new products or add-on new features in existing products. Existing customers are the ones to reach to, in these cases. With existing customers, brand value has been created, thereby the need for expensive advertising an promotion is marked down for new businesses.
Leveraging customer lifetime value
Retention marketing justifies the expenditure on customer acquisition. In this sense, it is also a point of evaluation for acquisition cost. The contribution of a customer over his lifetime of business with your organization represents customer lifetime value, which is enhanced by retention marketing.
It can be reiterated that the returning customer is a life-time asset for any business. The current trend in the industry is to leverage the selling probabilities to the existing customer base and to make inroads for repeat business. Existing customers trust your brand and are quite willing to be patient and accommodative. It is a boon for businesses to retain a healthy chain of happy customers to that they find every future association, a pleasurable experience.