{"id":2702,"date":"2021-12-22T10:00:00","date_gmt":"2021-12-22T10:00:00","guid":{"rendered":"http:\/\/138.197.200.24\/resources\/blog\/retention-marketing\/"},"modified":"2021-12-22T10:00:00","modified_gmt":"2021-12-22T10:00:00","slug":"retention-marketing","status":"publish","type":"blog","link":"https:\/\/www.smartkarrot.com\/resources\/blog\/retention-marketing\/","title":{"rendered":"A Guide to Retention Marketing"},"content":{"rendered":"
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You have a solid product. Naturally, you want new users to experience it. But you also want your former users to consume it and engage with its offerings. How do you make that happen? The answer is simple \u2014 retention marketing. Retention marketing is so effective that SEMRush states that a loyal customer usually spends 67 percent in their 31st-36th month on a brand rather than in the first six months of use.<\/p>\n

In this post, we\u2019ll discuss retention marketing, why it\u2019s essential for your business and some compelling strategies that you can bank on.<\/p>\n

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But, First, What is Retention Marketing?<\/h2>\n

Retention Marketing is a form of marketing strategy that targets existing customers and keeps them connected to the business. Most brands ensure their customers stay in the know via emailers or regular communication; they often bring them back to the brand via loyalty plans, exclusive offers, etc. In a nutshell, retention marketing is a strategy to retain your existing customer base and pique their interest enough to consume your brand and make any purchases.<\/p>\n

While this form of marketing works in tandem with acquisition marketing, its intention is quite a contrast. As a brand, your communication is always active in retention marketing because your goal is to make the customers purchase and actively engage with your product. When your old customers return to your brand, it\u2019s mostly to buy a product or increase sales. For that very reason itself, retention marketing is great because it\u2019s a sure-shot way of increasing your brand awareness<\/a> and revenue.<\/p>\n

As per Profitwell\u2019s study<\/a>, the average retention rates across various industries are:<\/p>\n

Retail: 63%
Banking: 75%
Telecom: 78%
IT Services: 81%
Media: 84%
Insurance: 83%<\/p>\n

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Why Should You Perform Retention Marketing?<\/h2>\n

To grow \u2014 it\u2019s a no-brainer. But, here are some reasons for you to implement retention marketing:<\/p>\n

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  1. Retaining existing customers is less expensive than acquiring new customers. As per Alexa<\/a>, it costs 5x more to acquire new customers.<\/li>\n
  2. While it takes longer to convince new customers, it\u2019s relatively effortless to convince your existing customers to purchase or experience your product. Whether you\u2019re launching new products or evolving into a different sector, your existing customers are usually keener on trying them out.<\/li>\n
  3. You can continuously improve your customer experience<\/a> with retention marketing as you can seek timely feedback.<\/li>\n
  4. It\u2019s very data-driven and real-time in nature because you can understand what\u2019s working and what\u2019s not based on your customers\u2019 purchase history.<\/li>\n<\/ol>\n
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