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Archived in Marketing is often seen as a business’ glamorous side. Glossy brochures, flashy advertising and fancy product launches can seem like a lot of fun compared to telesales and bean counting. Building brand awareness and luring customers away from the competition is an important duty to perform. However, marketing also has a defensive role to play.
Along with customer services and sales teams, marketing has a duty to actively engage customers, keep them happy and retain their loyalty, particularly when times are tough.
Retention offers the best return
With the economy continuing to nosedive, in a recent survey of 100 European businesses 34% said that retention was their primary concern. A plucky 8% said that chasing new customers was still the first thing on their mind, which is a big drop from 40% last year.
Although not carved into stone or approved by the office of statistics, the consensus is that it costs five times more to acquire a new customer than it does to retain an existing one. When you also add their lifetime value into the equation it doesn’t take Carol Vorderman to tell you that ensuring your customers feel loved is the smartest way of spending your marketing cash.
Active customers are happy customers
Studies show that during a recession you should market more rather than less. Although the temptation is to guillotine budgets and bunker down, if you maintain a presence and engage with customers during turbulent times you position yourself to prosper once the storm has passed.
Active customers are happy customers, and running campaigns that reinforce the sense that buying your products is the smart thing to do is the best way of provoking them into retail therapy. Whether it’s rewarding their loyalty with discounts, sending them a newsletter or just a simple thank you card, actively engaging customers lets them know that you care about them, and stops them looking elsewhere for affection.
Knowing what to say and when to say it
Retention marketing isn’t a strategy led blindly by the heart. You know when your customers want you to talk to them simply by watching your database.
If you track your customers’ buying behaviour you’ll be able to see the warning lights when something is wrong. Then it’s time to send out the surveys to find out what you can do to make things right.
Ask your customers when they plan to buy again. If not, why not? And what can you do to change their minds. A customer survey can be a marketing campaign in itself, so remember to find a way to reward those giving you honest feedback.
Retention reminds customers you’re there
When you consider that your existing customers contribute 80% to your revenue, engaging with them and keeping them happy should always be on your mind. And with digital media, it’s easier than ever to run one-to-one retention campaigns targeted to appeal to the preferences, hopes and desires of every customer.
So whilst times are tough, don’t sit in silence praying for easier times, but continue to remind your customers you’re still around and that you love them because it’s what they’ll want to hear.
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BDA (Buckingham Design Associates) blog – real people giving real opinions, and a complete lack of agency waffle. BDA deliver an exciting blend of design and creative marketing for the Oxford, Milton Keynes, Northampton and London region.