1. RETENTION MARKETING DEFINITION

Retention marketing could be defined as the practice to create repeat customers. Instead of acquiring new customers, you can still totally be able to gain profit from your old customers. In recent years, it has gained popularity among most effective marketing methods. However, business owners still need to master traditional digital marketing strategies in order to attract customers first; still, by making customers coming back to them, chances are their businesses will witness an increase in ROI.

2. RETENTION MARKETING BENEFITS

• Increase ROI

In terms of customer acquisition, a suitable retention marketing strategy could help boost up the ROI of your business. Let’s take a look back at the CLV (customer lifetime value), now from here we could learn that the more customers we acquire, the more long-term value they could bring to our business.

• Cost no more than customers acquisition cost

A study from Bain and Co. has shown that it costs seven times as much to acquire a new customer. However, few businesses know this fact. Retention campaigns, in most cases, only take up a small portion of the whole marketing budget in general, which also means that the return will be proportionally higher than customer acquisition campaigns.

• Higher revenue 

Why? Because according to a recent study, repeat customers spend 33% more than new customers on average. Therefore, there is no doubt that focusing on retention marketing could also boost up your revenue.

• Stay on the competitive market

A sad fact to nowadays businesses: People are no longer loyal to brands like they used to in the past. In fact, shoppers only focus on which brand could provide them exactly what they are looking for, not only the mere brand.

Mobile users only spend over a minute shopping on mobile devices. Therefore, if your brand is not the first thing that comes into their mind, chances are you are losing on the competitive market. That is why keeping your customers nowadays is deemed to be easier than acquiring the new ones.