It’s a well-known fact in marketing that it’s more expensive to influence a new customer to make a purchase than it is to influence an existing customer to do so again. That’s why your marketing strategies should be comprehensive about this fact.
If you’re focusing solely on getting new customers for your product, you may want to rethink your approach. Loyal customers can do a lot more for you than simply buying your product. Stick around to learn more about customer retention and how to apply it to your marketing plan.
What is customer retention?
Customer retention describes the different strategies that business owners c level executive mailing list into practice to reduce churn rates and create a more loyal customer base. It is the collection of actions that are taken to ensure that customers are satisfied and that their efforts to acquire new customers are not wasted after a single purchase.
Loyal customers do more for you than just buy your product. They’re more likely to recommend your brand to friends and family, spend more than first-time customers, and help you plan your financial strategies more effectively because you already have an established customer base that you can trust to make purchases.
Why is customer retention important?
As we’ve seen, there are many reasons why it’s important to invest in building loyalty among your current customers to your products and brand. Let’s take a deeper look at what else customer retention strategies can do for your business.
customer retention on social media
Increase Customer Lifetime Value (CLTV)
Customer lifetime value is the measurement of how much money a customer spends from their first purchase to their last with your brand. Customer retention plans will create a lasting relationship with the user, nurturing customer trust and rewarding loyalty. This, in turn, results in greater value added over the period of time that customers decide to engage with your business.
8 Tips for Creating a Customer Retention Plan
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