Across the business world, customer acquisition ranks as one of the priciest and most labor-intensive aspects of running a business. Once a sale is made to a customer, retaining that customer through retention marketing is the most affordable and practical way to ensure future sales. Retention marketing is critical for a business to succeed in today’s world, with new customer acquisition costs expected to continue to rise.
What Is Retention Marketing?
Retention marketing’s goal is to increase the likelihood and frequency that a past customer will continue to make purchases in the future. Statistically, businesses, on average, make 40-50 percent of their profits from repeat customers. Retention marketing can be employed to ensure customer loyalty through a variety of means, including:
- Email marketing campaigns
- Loyalty and rewards programs
- Subscription programs
- Streamlining return processes
- Responding to customer feedback
- Implementing customer accounts
These initiatives can be implemented with less cost and labor to ensure that a business can generate the highest profit per sale or service. Email marketing campaigns are among the most effective in keeping costs and labor levels low. These email marketing campaigns can seamlessly merge with loyalty programs and responses to customer feedback. If your company sells single-use products or services, a subscription program can be very effective in providing convenience for your customers and a steady stream of predictable revenue. If customer accounts are offered alongside a subscription program, it can become convenient for customers to modify their subscription orders or request services. The ease of purchasing a product or service drives customer loyalty over other options available elsewhere.
Why Retention Marketing Is the Most Cost-Effective Forum of Marketing
Regardless of your industry, customer acquisition is one of the most challenging and expensive aspects of running a business. Often more can be spent on obtaining a customer for a single purchase or service than the profits generated from that sale. This is where retention marketing can swing the cost of customer acquisition in your favor. Businesses, on average, make 40-50 percent of their profits from returning customers, and this is due to recurring purchases driving down the initial client acquisition cost. With client acquisition costs only expected to continue to rise in both price and labor, retaining first-time clients is crucial. For first-time business owners or even experienced business owners recovering from the devastating financial damage of the pandemic, Empowered Pulse is here to help owners implement effective and cost-efficient marketing strategies.
Make Success Your Reality With Empowered Pulse
Empowered Pulse Consulting strives to give our clients peace of mind through proven marketing strategies. Founded by Martin Obiozor, a successful former business owner, Empowered Pulse has built a team of industry standouts to tackle marketing problems of any size. Our team believes in proven strategies, not tactics or marketing fads. Our services offered include:
- Retention marketing
- Online marketing and advertising
- Website development
- Social media marketing
- Reputation management services
- Business coaching and consulting
- Pay-per-click advertising(PPC)
- Video advertising
- Mobile application implementation
If your business is struggling, contact our team today to begin building a tailor-made business marketing plan with help at every step of your journey to financial success.