It is easy to fall into the belief that marketing efforts are only needed when it comes to generating new business. However, your marketing strategy should continue to target even your active customers. Retention marketing is the process of increasing the likelihood of a customer purchasing again, while focusing on increasing the profitability of each repeat purchase. According to a study by Harvard, a 5% increase in online retention can boost your profits by 95%.
In simple terms, retention marketing is continuing to send emails, offers and other marketing materials to your current clients. By doing this, you increase your client’s customer lifetime value (CLV).
The second dimension of retention marketing is obtaining customer feedback. One way to do this is by reaching out via email or phone to make sure your clients are satisfied. If they are not, then you can resolve their concerns and rebuild their loyalty to your business. At Lift Local, we help small businesses with retention by reaching out to active customers with surveys asking for feedback. We acquire this information, and then give you a Net Promoter Score (NPS). Using your NPS, we will help you analyze trends and gain an overall sense of how your business is doing.