As a marketing agency it’s important that we are giving our clients the brightest ideas and the best bang for their buck. Today we’re exploring customer retention vs acquisition, focusing on why it’s actually cheaper for businesses to retain an existing customer, over establishing a new customer, and what marketing tactics you should execute to achieve brand loyalty.
According to the Harvard Business Review, it is up to 25 times more expensive to acquire a new customer, in comparison to trying to retain and attract an existing one. Yikes!!
Talking to our established business owners here… Rather than spending the majority of your marketing budget on continuously reaching new audiences, switch up your mindset to spend the time, money and energy on those who have already purchased from you.
Why? You know that these consumers already have an interest in your offering, whether you might be a clothing brand or you sell a lawn mowing service, so if you have more to offer, why not offer it to those who trust your brand and would be more likely to convert with a little push.
There are a range of marketing tactics that can be implemented to get you in the forefront of existing customer minds, including the likes of…
- A common one is the use of eDMs (AKA email marketing). Email marketing gives you the chance to speak to customers directly at a time that is convenient to them. You’re able to strategically showcase a range of new or relevant items that may be of interest to them, based on what they might’ve purchased in the past.
- Remarketing is another useful tactic that can be used here. You can actively retarget to past customers through social media advertising and/or Google advertising. You can get quite specific with this and actively advertise products or services that would be of interest to them, based on what they purchased in the past. If you’d like to dive head first into the world of remarketing, head across to our remarketing blog here.
- Promotions. Show them that you love em’! Add value to your customers and thank them for their loyalty to your brand through exclusive discounts and promotions that can only be used by those who have purchased from you before. Here’s a hint. This tactic can be implemented within the two strategies above!
Keeping and attaining the right existing customers is both valuable and cost effective. These are just a handful of the strategies a business can implement as a means to attain and re-attract past customers.
If you’re reading this and you’re a new biz owner, your focus will be on building your customer database AKA customer acquisition. But once those consumers make a purchase, you can then follow the marketing strategies above.
If you’d like some support to put these tactics in action, or would like to pick the brains of our PR & marketing experts please get in touch!
Written by Jessica Duca, PR Account Executive