There’s a lot of talk about customer retention vs. customer acquisition. Which is better? Which is more cost-effective? And it can sometimes be hard to see which of the two you should focus on in your business.
In general customer retention is considered easier and is proven to be much lest costly. It can be useful for companies at all stages, from start ups to fortune 500, but you don’t need to have thousands of customers when you start to focus your attention on retention techniques.
The same thing can be said about customer acquisition, you can have tens of thousands of customers but still benefit from acquiring new clients.
That’s why it’s tricky, it’s not always obvious which is the best path to take. If you’re not sure which is right for you read further and find out more about both strategies from Pathwwway Gambling.
What is customer retention?
So what exactly is customer retention?
Put simply it’s the tools and techniques you use to keep your customers coming back to you. It makes sense once when you realise that existing customers are 50% more likely to try new products, and are willing to spend 31% more than new customers.
Customer Retention isn’t just about minimizing customer churn. A solid retention plan will make sure that you see increased profitability in your business in the long run.
Keeping your customers sweet and coming back for more will also do wonders for your brand. Not only will they spend their cash with you but those loyal customers will eventually start talking about your products, or your attention to detail, or your great customer service to their family, friends and co-workers.
As the name suggests, Customer Retention is not a quick fix or a short-term commitment. It’s a long-term tactic that you need to commit resources, time & energy to.
A statistic well known in the business world is that it costs 7 times more to gain a new customer than to keep an existing customer. So for every one dollar you spend on marketing to an existing customer you need to spend 7 dollars to get the same results from a new customer!
Are you interested in how you can apply customer retention to your business?
Here are a few simple techniques that you can implement quickly without too much effort.
1. Create a Newsletter
As part of your customer retention strategy you want to be in frequent contact with your customers, so that your business stays in the forefront of their minds. Build your frequent communications with a newsletter so your customers know the latest about your business. Bonus points go to companies who make it crystal clear what exactly customers will be getting from the newsletter.
2. Set a speedy response time for your customer service team
An easy way to frustrate and lose a customer is by keeping them waiting when they have a problem or question. The best way to make sure your customers are happy through all their communications with your business is a speedy and helpful response. Build a maximum response time into your teams key performance indicators and state them on your website to set customers expectations.
3. Show customers you value their opinion
Authentic communication with your customers is the best way to be seen in a positive light. Always be open, honest and helpful with your customers. These values will open the door for you to have two-way conversations with your customers. Show them that you value their opinion by asking for feedback and reviews of your products or services, you never know you may learn something new about your product!
What is customer Acquisition?
You can’t make money without customers!
Acquisition is the process of gaining customers who have never bought from your business before, new customers. It’s often debated which strategy is more profitable, customer retention or customer acquisition. The truth of the matter is, that they both have their place in your business.
Customer acquisition isn’t easy and it’s usually more expensive than customer retention. There’s often high pressure that goes along with the high expenses of these customer-finding techniques. Spending and investing the big bucks really means your strategy needs to be effective.
There are possibly hundreds of different ways that you can acquire new customers some methods can be tracked and others cannot.
Need shift some more products and find potential new customers? Below are a few customer acquisition techniques that work for the majority of businesses.
1. Search Engine Optimization (SEO)
There’s no doubt that Search Engine Optimization will win you new customers for your business. Using Pathwwway Gambling SEO to boost your website in Google’s ranks will help people with a problem find your business and you can get to providing solutions and solving their problems.
There are still thousands of companies not implementing SEO. Even putting in the some of the simplest SEO techniques will give your business an advantage over some of your competitors.
There are plenty of SEO techniques and tools you can utilise on your website and a lot of web marketing agencies willing to help you put together a plan. Or if you’re on a budget there are hundreds of useful resources available online for free or for just a few bucks.
2. Incentivize referrals
Everyone loves a freebie.
A great way to gain new customers is to inspire your existing customers with a referral scheme. If you have an online service prompt your new users to refer their friends by giving them something in return. Make the process seamless, and easy for both parties to get their freebies as quickly and easily as possible with built in automations.
3. Get Social
Social Media is paving the way forward for Internet marketing. Facebook and Twitter are particularly great resources for reaching new audiences.
You don’t need to run ads or pay for ‘sponsored’ posts, you can use the free functions of social media to gain new customers – create platform content as videos, text, graphics or photos to spread your message.
Build rapport with potential customers by showcasing new products or offers. You can also talk directly to people to share insights into your product or answer any questions they may have.
This one-on-one contact will make those prospective customers feel valued and in turn, build loyalty to your brand before they’ve even bought anything!
So, where should I be spending my budget?
These are just a few easy examples of customer retention and acquisition. Use your knowledge of your business to discover the best route for you right now. Then commit to creating and implementing a strategy to use either of these sales boosting tactics.