In today’s competitive world retention of a customer is as important as making a new one.
Marketing strategy change with the change in time, early making new customer is more important (given more preference) but as the time pass marketers realize that along with making new customer retaining the existing one is also important to get success in business.
Email Marketing is an astute method of marketing if you work as a smart marketer you probably spend a lot of time on email marketing to acquire a customer, to perform engagement activity, planning campaign after campaign to convert more prospect into a customer.
If you want more conversions you have to treat your audience at par. You must email your current customers as much as your prospect. Remember a happy and satisfy customer bring more business than a new customer and retaining an old customer is much easier than gaining a new one.
Here’s why you should equally be focused on your current customer as much as you are on your prospect.
Why customer retention is important
Old customer beat the new customer
According to a stats, if a person had made a purchase there is 27 percent chance of buying from you again and percentage of future purchase increases after every purchase.
Practically the longer a customer stick with you, potential to earn more will be there because the acquisition cost gets cut.
To optimize your customer acquisition cost you need to retain, upsell, cross-sell your customers and email marketing is a top method to do so.
Through customer retention email you would be able to retain your existing customer along with gaining the new one but remember there is a difference between retention email and sales email.
Retention email is all about providing value to your existing customer while sales email is about selling your brand. Share information, tell a relevant story, offer exclusives all and all keep your customer engage with your brand.
Referrals lower acquisitions costs
If a customer repeatedly making a purchase, they are becoming more comfortable with you and chances they refer you to other person is high. As per stats after 10 purchase, customers refer 50 percent more people to a business than a one-time purchaser.
A Happy existing customer can increase profit not only by making more purchases but by referring you to other people as well (word of mouth marketing).
Here I am mentioning 4 retention email ideas to get you started
Exclusives: Any exclusive deal for you selected category of customers only. For example preview of a new launch, special discount, VIP passes, etc., all this make a customer feel good and value.
Occasional Emails: Birthday and anniversary greeting with some additional offer. Show up for special occasions in your customers’ inboxes.
Award for referral: Award your customer for being a great referrer, after all, they must get something in return for referring you to others.
Request: Ask the customer for their feedback to make them make them feel that their opinion matter.
It is 5-10 times cheaper to retain existing customer than to acquire a new customer. If you want a better ROI and a good result of your hard work spend equal time on customer retention as you spend on acquiring new ones.