To assist you grasp the distinctions between client acquisition and retention, we’ll now go through what retention entails and a few techniques you can put into action right now. Customer retention, as opposed to customer acquisition, encompasses all of the operations that a brand undertakes to encourage existing consumers to return and spend again.
Pro: Retention is less expensive than acquisition. In fact, retaining existing customers costs 5 times less than acquiring new consumers. Furthermore, loyal consumers might spend up to 67% more than new customers. Because the consumer already exists, it is far easier to sell to and interact with them than it is with prospects who have never heard of your business.
Con: If you can think of one, please let us know. There aren’t many disadvantages to keeping existing clients. The longer a consumer remains loyal to your brand, the less money it will cost to maintain that customer-brand connection.
Why understanding customer retention important?
Customer acquisition is undoubtedly important to any business, but if businesses spend the bulk of their Spending time and energy wooing new customers at the price of preserving old ones will result in increased churn and a decreasing trend in customer satisfaction.
As a consumer, you may recall a period when an introductory rate for new customers was far lower than what was provided to current customers – and this sometimes breeds animosity against the firm in question for not respecting loyalty.
Aside from that, it is significantly less expensive to retain existing consumers than it is to acquire new ones. There are several approaches to developing client retention strategies – in general, any process that fosters customer loyalty may be classified as a customer retention activity. To learn about these things you can enroll in an digital marketing course in various locations like Digital Marketing course in Pune, Digital Marketing course in Thane or Digital Marketing course in Navi Mumbai.
Customer Retention Strategies
Retargeting advertising originated in display advertising, but it is now widely used on social media platforms as well. Have you ever looked at a product online, didn’t buy it, and then seen it on other websites? This is referred to as retargeting advertising, and it entails utilising a cookie to monitor your website visitors and consumers, as well as setting up precise criteria to target those who have viewed a specific product or page but did not convert. It’s an excellent technique to attract clients that share a common interest in purchasing from your company.
Did you know that 72% of consumers prefer receiving branded material via email than any other channel? Email marketing is one of the most effective channels for eCommerce retailers, and it should be a part of your client retention plan. Send product suggestions based on consumer behaviour or abandoned basket notifications through email.
Finally, there are eCommerce loyalty schemes. Create a programme that gives value and rewards your consumers for their purchases to demonstrate your appreciation for their loyalty. There are many different sorts of incentive programmes available, so be creative and start showing your consumers that their loyalty is valued.