While every business owner and executive knows that customer retention strategies are important, the results of doing this aspect well are eye-opening. Indeed, as the statistical evidence confirms, effectively customer retention strategies don’t just drive success; they determine long-term organizational survival. Behold:
- 80% of future profits come from 20% of existing customers (Source: Gartner Group via Salesforce)
- Increasing customer retention by just 5% can increase profits by 25-95% (Source: Bain & Co.)
- The probability of selling to an existing customer is 1400% higher vs. selling to a new customer (Source: Marketing Metrics).
- Compared to new customers, loyal customers are 700% more likely to try a new offering, 500% more likely to make a purchase, 500% more likely to forgive a mistake, and 400% more likely to make a referral (Source: Temkin Group).
- It is 600-700% more expensive to attract a new customer than to retain an existing customer (Source: ThinkJar).
- 73% of satisfied customers will recommend a brand to others, and 46% will trust that brand’s offerings above all other competitors (Source: SDL Global CX Wakeup Call Report).
Inspired by these glorious statistics, here are 3 ways that online marketing can drive your customer retention strategies, and increase your revenues and profits:
Establish Your Expertise
Customers want to partner with trusted advisors who are going to help them before, during and after the transaction. Online marketing helps you educate your marketplace, and establish your business as an authority. Naturally, this will help with new customer acquisition. But it is just as valuable when it comes to impressing existing customers, engaging and reducing churn rates.
Provide Rapid Answers and Insights
The Aspect Consumer Experience Index found that 65% of customers feel good about a company when they can answer a question or solve a problem on their own. Online marketing is perfectly suited to satisfy this craving. No, it won’t answer every question. But it can certainly cover the basics for your existing customers, which is not only a win for them, but it’s much more cost effective for you.
Build Trust and Deepen Relationships
Existing customers don’t want to be inundated with offers and promotions. Online marketing helps you stay connected by delivering value (e.g. best practices, use cases, etc.). In this way, you position yourself as a true partner vs. just another vendor.
Learn More
To learn more about using online marketing to drive your customer retention strategies — so that you are maximizing lifetime customer value and achieving your business’s full profit potential — contact the Leap Clixx team today. Your consultation with us is free.
For more advice and best practices, download our FREE eBook “A Guide to Inbound Marketing Best Practices” now:
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