It should be the aim of every business to retain a loyal customer base; even if your target demographic has a short buyer lifecycle, advocacy among your audience is so important when building your brand. In this blog post, we’ll take you through some easy to implement steps on how to keep your customers coming back for more. But, first, it may be worth reading our article on the digital marketing funnel to understand exactly what you’re striving for.
In case you don’t feel like flicking between web pages which, let’s be honest, moving that cursor is just a little too much effort sometimes… here is a brief overview of what it is you need to aim for with customer acquisition and retention.
The Retention Stage Of The Sales Funnel
Retaining customers is all about nurturing your relationship with them and working with your audience to find out what they want from your organisation post-purchase, they may even be content with a simple repost on Instagram. From that point on, you will always be the company that took an interest in them, as an individual and that can be invaluable.
Of course, for more help and advice on how to get your customers to this stage in the first place, visit our dedicated blog post on the digital marketing sales funnel.
How To Calculate Your Customer Retention Rate
A customer retention rate calculation is simple enough. All you have to do is add together your existing customers and your new customers and divide by the number of customers lost.
Your churn rate is an important calculation to know, but it is up to you over what time period you use this. Most organisations evaluate their churn rate based on monthly custom, however you could change this to suit your business model and calculate quarterly, or even annual retention rates.
Digital Marketing Techniques To Boost Your Customer Retention
There are a plethora of online marketing tactics that can help to improve your retention rate. We’ll go through some of the most well known and successful below. However, every business is different and it could be that what works best for one, may not always work best for the other, so keep that in mind.
We can make an educated guess here and say that you probably rolled your eyes reading that one. Obvious. But, everyone loves a freebie and the ability to tempt previous customers to return to your premises, or website with the promise of exclusive discounts is not to be underestimated. It is important when applying this tactic to lead with the message that this is not a discount for everyone. Make sure that your customers feel looked after and give them a reason to choose you over your competitors.
However, if you are going to give away products and services at a discounted rate, or for free, be aware that this does take away some of the allure of luxury goods and products. Sometimes, a company that consistently discounts its wares will run the risk of being pigeonholed into a certain category of affordability. Assess your organisation, determine if your audience will be receptive to this kind of campaign. If it still seems right, implement it.
Can you give priority access to loyal customers? If your business runs events, workshops, conferences, has an opening coming up, or even an online sale, giving away an exclusive, or early access pass to these occasions can be a great way to keep previous purchases interested. Offering early bird pricing structures, exclusive products just for your most loyal of clientele, or free entry to certain events are all examples of how to keep customers entertained.
This kind of customer retainment strategy can run alongside things like email marketing campaigns, social media, or even direct mail. It’s all about making your customers feel like they received something extra, a perk for buying from you, as opposed to a competitor.
As purchasers, we almost expect a company to offer us some form of referral system now. Every time you download a new app, you’re bombarded with potential discounts and saving for merely showing someone a code. Essentially, it’s a form of homework. It keeps them thinking about you and relating your brand name to a certain industry. If customers know that they can be rewarded for getting someone to sign up for what they have signed up for, they are much more likely to become an advocating purchaser or user.
Use this technique wisely, set limits on what people can achieve and always keep an eye on the quality of business that this is generating. Always keep this discount more appealing than new customer deals, as these kinds of campaigns are more likely to lead to a chain reaction of positive reviews and referrals.
How To Promote Your Customer Retention Strategies
As we said, everybody loves a discount or an invite. And discounts/access that isn’t available to everyone? Even better. Because you are only reaching out to previous and current customers here, it’s vital to consider how you are going to be reaching them.
Email marketing has been around for donkeys’ years and is a classic marketing technique to deliver specific messages to a targeted audience. It’s a total classic for high ROI and, even though it’s an old online marketing tactic, it’s still incredibly popular. Nowadays, a digital marketing agency can run email campaigns that only reach your previous purchases, so exclusivity deals, referral strategies, etc. can be managed with ease.
It’s not all about what’s in their inbox. And remarketing doesn’t have to be all about targeting those abandoned checkout users. We believe that remarketing doesn’t get nearly enough credit because, when used correctly, it can spark interest in the minds of previous consumers, increase brand awareness of any new products/services to an already motivated audience, help to increase trust levels and get your conversion rates to look even better.
You could have reeled in a potential returning customer, but how do you make sure that they click that all-important checkout/contact button? If you need to boost your website’s performance, keep visitors engaged and drive them through the sales funnel, then conversion rate optimisation can help you to achieve this.
The beauty of conversion rate optimisation is that with these techniques, the possibilities don’t just end at your website, they can stretch to multiple areas of your organisation, online and offline. Make sure that every landing page, whether visitors are driven in from emails, or remarketing advertising, doesn’t send visitors packing. If you need some top tips on CRO, take a look at our services, or our blog posts on this frankly underutilised technique in the digital marketing world.
There are so many ways to keep your customers engaged with your brand, from virtual events to loyalty schemes that anyone would be hard-pressed to refuse. But, it’s the most intangible knock-on effects of customer retention strategies that usually give businesses the best results. Creating a feeling of personalisation within your digital marketing is so important to the success of your efforts, it’s not all about new leads. Take a look at how we boosted customer retention for our client.
At Design Box, we offer useful tips and expert advice and support in every aspect of digital marketing, so get in touch now to take your business to the next level.