BEYOND ACQUISITION: THE IMPORTANCE (AND NECESSITY) OF CUSTOMER-RETENTION

This week:

• A few thoughts on why it's (so very) necessary to dedicate part of your effort (and budget) to customer-retention.
• Crowd-sourced advice re: customer-retention and customer-centric marketing.
• A customer data platform that is so much more than a customer data platform.

BEYOND ACQUISITION: MAXIMIZING GROWTH THROUGH CUSTOMER-RETENTION

I always find myself asking: why is it that so many brands put so much effort (and money) into customer-acquisition (creating multi-channel networks to usher prospects to conversion) - but do almost nothing re: customer-retention??

Here’s the thing (and you’ve probably heard this before): most of your revenue comes from a small minority of existing customers.?

This small minority (read: your fanbase) (but really, each of your existing customers) represents a largely ignored (by far too many brands) opportunity to drive revenue and business-growth.

Enter: customer-centric marketing, an approach that extends beyond acquiring new customers and aims to identify and market additional offerings to existing customers, retain them as customers, and cultivate them into advocates for your brand.

Why is customer-centric marketing important??

So - make no mistake, customer-acquisition is - indeed - a necessity, but it’s not (by any means) everything. Here’s why your existing customers (and in particular, that small minority who disproportionately contribute to your revenue) are (far) too important to ignore:

It’s very expensive, acquiring new customers.?

• You’ve (also) probably heard this before, but, per the different statistics on customer retention, acquiring a new customer is up to 5x (or so) more costly than retaining an existing customer.?
• What’s more: the success rate of selling to an existing customer is 60-70% compared to just 5-20% for a new customer.
• Even more: a 5% increase in customer-retention results (on average) in 25-29% increase in revenue.

It’s an opportunity to acquire further customer insight.

• This is intuitive, but so many brands don’t get it: each of your existing customers represents a collection of (quality) insight into the behaviors, needs, and pain points of your different customer personas.?
• By consistently interacting with your customers, you ensure a steady flow of information you can use to improve products, personalize messaging, and improve the overall customer experience.?

It leverages your existing customers to acquire new ones for you.

• Satisfied customers can (relatively easily) become brand advocates, propagating (in organic fashion) a positive perception of your brand and (more than this) referring new customers.?

How to do customer-centric marketing?

Customer-centric marketing is about identifying opportunities to engage and convert existing customers - again and again. Here are a few best practices to follow:

Be attentive.

• There’s so much talk of providing “good customer experiences,” and yet, for the most part, brands don’t (really) manage to do so - at least, their customers don’t think so: 54% of consumers report “customer experience” feels like an afterthought for most of the brands they interact with.
• What this means: you need to consider the impression you make at every touchpoint with your customers.
• Ask yourself (and your customers): with each touchpoint, are you telling them what your customers need to hear to validate their decision to buy from you? If not - why? What aren’t you saying? What aren’t you doing??

Keep your brand top of mind.

• Your customers (along with every other customer) are over-inundated with content (in seemingly infinite amounts) each and every day - and this “content deluge” doesn’t cease when you convert a customer.?
• What this means: you must dedicate the effort (in strategic fashion) to ensuring you stay in front of your customers after they convert.
• How: connect (consistently) with your existing customers (e.g. through emails, newsletters, social media messages, retargeting campaigns, special offers and discounts).

Engender meaning.

• Your brand has to be more than a mere amalgam of sales messages.?
• Consumers want more of a connection: 82% say they want a brand’s values (and emotions) to align with their own, and they’re very willing to vote with their wallets if they feel there’s misalignment.?
• What this means: you must cultivate a relationship with your customers.
• How: create community forums, put on events (online and offline), provide space for customers to give reviews, ask them for feedback, engage with them on social media - involve them in your vision.?

The takeaway from all of this: in shifting (some of) your focus away from customer-acquisition and toward customer-retention, you’re able to leverage your existing customers re: revenue, referrals, and loyalty.?

WORTH YOUR TIME: MORE ADVICE RE: CUSTOMER-RETENTION AND CUSTOMER-CENTRIC MARKETING

There’s so much more to say re: customer-retention and customer-centric marketing - so, here are a few links for you:?

• This practical summary (by Thomas McKinlay ?? of Science Says ) of some research work (from just a few years back) finding: responding to customer reviews increases positive reviews, reduces negative reviews, and increases review-volume overall ..
• This guide (by Grace Parazzoli of Demand Curve ) of how to set up an effective customer referral program.?
• This talk (between Lauren DeSouza and Dave Kerpen for Retain ) on the necessity (and power) of listening re: customer-retention.?

TRY THIS: VISUALLY DESIGN CUSTOMER JOURNEYS

So - central to any marketing strategy (be it oriented toward customer-acquisition or customer-retention) is a fleshed-out understanding of the customer journey (for each of your customer personas), end to end.?

If you know (with relative certainty) what each of your different customer personas are after at each stage of their journey with your brand (pre- and post-conversion), you’re able to create messaging that meets each of them where they’re and tells them what they need to hear, when they need to hear it.

Enter: Ortto (previously Autopilot), a platform that allows you to visually design (multi-channel) customer journeys, use customer data to personalize content, and create workflows to automate repetitive parts of the process.

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Check it out and let me know what you think - and also, pass along any recommendations you have on new and useful tech.

That’s a wrap on this week, folks.

Find any of this useful? If so, let me know what (and why) in the comments - and if not, I’d ask you to do the same.

Cheers.