Receiving an email notifying you of a sale to a new customer is always exciting. After all, it means that your marketing efforts are paying off! However, there is something that offers an even higher return on investment at a fraction of the cost—retaining your existing customers. Customer retention strategies are just as varied as marketing strategies, which means that what works well for one company might be a poor fit for another. Here are some real-world examples of brands cultivating loyal customer bases through clever customer retention.
Attract the Right Customers
One of the best ways to effectively retain customers is by attracting the right customers in the first place. Many times, businesses that focus too much on undervaluing their product or attracting any customer end up with poor retention rates. One way to improve lead quality is with careful ad targeting and user segmentation. This is one of the most effective customer retention strategies, as it drastically increases the chances that someone will be interested in your product now or in the future.
One example of this is Domino’s. This pizza company used highly targeted Google Ads and Facebook Ads campaigns to market products to people who they saw as being in their core demographic. As a result, they had a 65% drop in their spending per acquisition and increases in customer retention.
Use Customer Loyalty Programs
Customer loyalty programs are tried and true customer retention strategies, as they incentivize existing customers to continue making purchases. Many companies think about loyalty programs like “Buy 10 Get 1 Free” at a local coffee shop, but they can take a broad variety of forms. One of the most popular customer retention strategies that you likely participate in is Amazon Prime. This monthly subscription offers exclusive discounts and free 2-day shipping. Amazon found that Prime customers spend, on average, $1,400 on the platform every year. Non-members only spend $600.
Educate Customers
When you have a new employee, you put them through a training process to increase their familiarity. Even years later, any time you switch to a new type of software or alter your processes, you’ll put them through additional training. You should look at the education of your customers the same way. Customer retention strategies are not just about encouraging repeat purchases, but also about encouraging existing clients to try new things that could benefit them.
One example of this is the You Need a Budget software. This tool is a beloved budgeting app, and they use a variety of strategies including TikTok, free budgeting workshops, Q&A sessions, Instagram Live sessions, and more to attract new customers and educate current ones on how to get the most out of the product.
Build Customer Retention Strategies with Because You’re Busy Co.
At Because You’re Busy Co, we offer a comprehensive range of services that can help boost your business, including newsletters that can keep you in touch with your current customers. We have worked with hundreds of businesses interested in upping their newsletter game. If you’re ready to start transforming your social media profiles or curious about our other services, visit us online or call us today at (410) 324-3934.