Customer Retention Marketing Trends and Tactics
Customer acquisition is usually cited as a top strategy for many brands. However, customer retention is just as important in contributing to the bottom line. In an age where consumers have hundreds of choices when choosing products and services, maintaining brand loyalty has a massive impact.
Here are some amazing statistics on customer retention and loyalty:
- According to Marketing Metrics, if a customer has previously made a purchase from your company, there is at least a 60 percent chance that the customer will make at least one more purchase. Meanwhile, if a new visitor clicks on your site, the chances of that person becoming a paying customer are only 20 percent at the most.
- Brands spend up to 11 times more on recruiting new customers than retaining existing ones (Brand Keys)
- A loyalty increase of 7% can boost lifetime profits per customer by as much as 85%, and a loyalty increase of 3% can correlate to a 10% cost reduction (Brand Keys)
- 67% of consumers said good customer service encourages them to stay longer with a brand and/or spend more money (ICSC)
- Recruiting new customers costs five times as much as retaining current customers.
- It is 16 times as costly to build a long-term business relationship with a new customer than simply to cultivate the loyalty of an existing customer.
According to Adobe, the top 10% of your customer base is spending 3x more per order than your average customer while the top 1% is spending 5x more per order. The same study also found that repeat customers:
- Are buying nearly 30% more items per order than first-time shoppers
- Are 9 times more likely to convert than first-time shoppers
- Generated three to seven times more revenue per visit
- Spent 47% more than first-time shoppers during the holidays
Not only are repeat purchasers spending more, but they’re also much more likely to return with every purchase.
- After 1 purchase: 27% chance of returning
- After 2 purchases: 45% chance of returning
- After 3 purchases: 54% chance of returning
- Customers who spend more on their first purchase are twice as likely to convert
As the price of customer acquisition increases and the benefits of customer retention being so plentiful, businesses are placing more priority in customer retention. According to recent research by Brightback, 97% of companies have increased their focus on customer retention marketing. However, some companies feel there is room for improvement.
Two-thirds (68%) of B2B respondents are confident that their company prioritizes customer retention appropriately, though 29% believe they could do better. On the other hand, half (49%) of the B2C respondents feel their company could do better while just a bit fewer (44%) feel they are prioritizing retention appropriately.
Customer Retention Tactics
Customer retention tactics and objectives vary greatly between B2B and B2C companies.
When it comes to customer retention objectives, B2C brands’ highest priority is improving customer satisfaction through better customer experience and support. For B2B brands, educating customers to facilitate usage of services and onboarding new customers effectively ranked highest.
According to Brightback’s research, 58% of B2C brands …read more
Read more here:: B2CMarketingInsider