Customer retention is good for business. Nurturing customers is an easier process than attracting new ones, and satisfied customers are far more likely to make repeat purchases. Maintaining strong customer relationships not only benefits your organization’s bottom line, but it also negates some of the effects felt from new regulations on data collection such as Google’s impending ban on third-party cookies.
A 5% increase in customer retention correlates with at least a 25% increase in profit)
By retaining customers, brands can continue to develop valuable first-party data, (based on how their consumers interact and use their products) which can then be used to personalize future interactions with existing customers and prospects. These reasons are why, in 2022, marketers must focus more on maintaining and nurturing existing customer relationships, similar to how you would with your spouse.
Being in a relationship takes care and attention – you don’t disregard your partner as soon as the relationship begins. Buying your spouse their favorite chocolates or flowers is akin to sending a personalized email to a customer — it shows that you care about them and the relationship shared by the two of you. The more effort and time you are willing to put into building the relationship, the more both sides can gain from it.
Tips for Retaining Your Customers
Continue getting to know each other. Relationships are built on strong foundations, therefore, making and keeping a good impression can be very important.
- Onboarding – Creating an onboarding nurture campaign, where you open direct lines of communication, helps establish your business as a partner, not just a vendor to your new customer. This direct line of communication also allows you to be quick and reliable in your responses when the customer comes to you with a question or issue, which is imperative to building trust. You should also use it to check-in and get any feedback they may have so you can better improve their experience. After all, communication is key in relationships.
- Marketing Automation – Leverage marketing automation. Marketing automation not only simplifies the nurturing process, it can also help you gather and leverage valuable data about your customers. Marketers can tap into insights including what products or services they may be interested in, how they are using your products or services, or if they have browsed your website. This data allows marketers to identify products or services customers should be using, giving them an opportunity to upsell their customers by meeting their needs. Just as you pay attention to your partner to anticipate what they may want or need, the same should be done for your customers, as it opens the door to additional profits.
- SMS Marketing – Go mobile with SMS marketing. It only makes sense that SMS marketing is on the rise with the prevalence of smartphones today. Mobile marketing gives a company a direct pipeline right into a customer’s hand, and represents an effective way to pass along important and relevant information. SMS messages can contain promotional deals, customer appreciation notes, surveys, announcements and more, all to keep the customer engaged and happy. Just like you check in with your spouse or share details of your day through SMS, you should share information with your customers too, through a channel that is efficient and effective.
Brands that use technology to forge deep connections with their customers, consistently provide value via personalized messaging, and maintain open lines of communication will build meaningful relationships with their customers. The stronger the partnership between the two parties becomes, the more each can get out of it – just like a relationship with your spouse.