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Acquiring a safe position in this huge market competition is what most companies look for. We all know, companies that experienced maximum sales achieve high profits. Companies spend huge amount and create marketing strategies to gain customers attention. Till now companies follow way to acquire new customers, no matter how high amount they have to pay. Although, changing trends and improved technologies has limelight the ‘Customer Retention’ that were not a major concern of the companies.
If your company is still not aware about what customer retention is and how it impacts to your business sales, then this blog will inform you about what to concern while making marketing decisions. If you are already focusing on keeping your existing customers, then continue reading to know more about factors that are helpful in keeping customers intact.
Although, despite knowing the advantage associated with customer retention marketing strategy, still most of the companies spend on Customer Acquisition even if it cost them a lot compared to Customer Retention. Slowly and gradually, retention related marketing are progressing, still most companies have now start focusing on this giant marketing factor to sale more.
To achieve long time success, companies should start focusing on the below mentioned points:
Reconstruct Ways to Measure Customer Value
The success of the business depends highly on the effective marketing strategies. If your marketing tactics gains success, then this will automatically reflects your business ROI. When a company focus on ‘Customer Acquisition’, then their main focus is on gaining maximum customers by using different marketing tactics like discounts, low costs etc, however, this results in eating your profit margins.
Every business want to achieve profits by maximum sales. Although, implementing the Customer Acquisition strategies only is a proof of business downtime with the less profit margin. You can easily notice the Holiday Sales figure of Black Day where the customers were got huge discounts on vast product categories, yet the store experienced less traffic.
Customer behavior is not static. Tremendous online shopping opportunities and competitive prices have change their priority of shopping the products online. They have started focusing more on value over price of the products. Meaning that, value of the product including price of the product along with the shopping experience is much more considered than only the price of the product. If a customer feels difficulty in shopping with any website due to slow page load time, out of stock products or error during checkout process leads to shopping cart abandonment.
Stats shows:
Customer Retention focus on Customer Lifetime Value (CLU) of each buyer and net profit on the amount experienced during the time the buyer is engaged with the brand. Those companies who focuses on customer retention must begin in valuing their customer satisfaction over transactional value.
Tracking Customer Data to Understand their Behavior
The success of keeping your potential customers engaged is by accommodating their tailor needs. Serving them with their desired products and services increase the chance of retaining the customer. As Customer Retention is a key to success, understanding the customer demand and what they feel about your brand is what that build your brand base. Earlier, tracking consumer demands is not possible, but advancement in technology caters several ways (such as Google Analytics) to analyze their data and understand the consumers need, behavior and other important aspects that would keep them engaged with your brand.
When you consider the consumer data to understand them better, it predicts about your customer needs, thereby helping in serving them with great customer experience which is mostly focused by them nowadays. Those who look in Customer Retention gain an insight of their customer behavior and collects data that would build a strong base for your marketing campaigns. Briefly,
High demands and growing profits require investing in data driven technology to track customers. Therefore, companies should be ready to make an investment in the latest technology to see the results.
Restructure Marketing Efforts
Fact to success lies on following the latest market trends. Continuous evolving of changes require following it. Companies who wish to run for long should prepare investing in Customer Retention. It is important to execute this approach by restructuring your company goal. Be ready to allocate 50% budget on Customer Retention, and if not possible, then at least prepare a separate budget for it.
Organize a separate Marketing Team to perform the customer retention. Don’t add-on it with acquisition effort as the managers evaluate both retention and acquisition results equally. Keep the employees performance reviews and marketing campaigns separately from acquisition so that you get hold of both the results equally and acquisition results don’t takes the priority.
Restructuring from top to bottom is uttermost important to measure the success rate of the Customer Retention. As it endeavors potential customers, therefore keeping the retention requires long time investment.
After knowing the benefits, want to implement customer retention strategy in your eCommerce website to make your future remarkable ? Share your thought on this by commenting below.
Yes, Businesses are more spending towards grabbing new customers and making money. Retention is an ultimate source of earning money. Customers who have already bought from your site are somewhat trust your brand. They know about your products and services better than new customers. So, spending more on retention is best strategy to earn more money.
Thanks Chris.
I would say this is not a new technique but yes it is an effective way to have more sales. Out of all, loyalty programs and sending discount emails to our customers are best.
Yes, this is not a new technique but eCommerce store owners are now focusing more on it.