Retention in marketing is the need of the hour for every brand that wants long term profitability. Did you know that repeat customers spend 33% more than new customers? Retention in marketing focuses on getting repeat customers to engage and do higher value purchases with your brand. Retention is the new growth strategy because it’s cheaper than acquisition. It’s almost 25 times more expensive to acquire a new customer than it is to retain an existing one. Although retention has always been very critical, it’s more important than ever due to the stressful times we’re in. Brands must figure out ways to hold on to their most profitable customers.
Based on a Deloitte survey of 1000 CFOs, 3 of the 4 top strategies to impede a recession were customer retention oriented. A small increase in retention has the capacity to cascade and multiply its effect over time. Long-standing customers who have had an unforgettable customer journey experience are far more likely to return and spend their money on your brand. Repeat purchases from existing customers equal repeat profits at a zero acquisition cost. Drawing on a research by Harvard and Deloitte, customer retention strategies are a proven measure used by top companies like Samsung and Honeywell to successfully ride the waves of a downturn.
There are several reasons to make retention in marketing a priority:
Here are some best practices to effectively drive retention in marketing:
Annex Cloud’s advanced customer retention and loyalty solutions are designed to engage and reward your most valuable and profitable customers. Our ability to segment customers and personalize customer engagement has led to significant increases in average order values (AOV), frequency of purchase (FOP), and most importantly, the ability to retain valuable customers who are driving the majority of your revenue. To further illustrate this point, Sugarfina, a premium boutique candy company, saw their revenue increase by 15% and repeat transaction frequency increase by 57%. Call us today.