The landscape created by COVID-19 has introduced no end of questions for marketers, such as how to adjust marketing budgets and where to focus resources, but one thing is certain: marketers need to place more importance on customer retention now than ever before.
Why customer retention matters
It costs a lot more to attract a new customer than it does to keep an existing one; studies have suggested that acquisition costs up to five times more than retention. There’s also proof that existing customers are more likely to refer, try a new product offering, or increase their spend than new customers.
Limiting churn is beneficial for both the short- and long-term viability of your business; not only does it securely guarantee your base for now, but it also increases the lifetime value of your customers.
What customers want
While the specific needs of customers can vary from business to business, some things are consistent: they need to feel acknowledged and valued, be satisfied with your products and services; and—above all—believe that sticking with you is a better choice than the alternatives.
While everything from discounts for loyal customers to investment and care in customer service can play a part, an oft-overlooked aspect is the importance of inbound content marketing. Serving to reinforce, add value and nurture customer relationships, it’s a vital part of the mix at the best of times—but in the current climate, takes on a whole new level of importance.
4 things your business needs to do for customer retention today:
1. Strategise:
Build a content marketing strategy that’s dedicated to customer retention and roll out measurable campaigns to hit your goals.
One brand that does customer retention very well is our client Aviva. We produce engaging content that Aviva then distributes to their customers via a targeted e-zine (email magazine). Performance data shows that Aviva customers are up to 13% more likely to renew when they receive eight or more e-zines, and they are 9% more likely to purchase more than one product.
2. Measure:
There are a wide range of metrics that can be used to measure customer retention from Revenue Churn Rate, Repeat Purchase Ratio, to Relational Net Promotor Score and more. Determine which ones are suitable for your strategy—if you need help to identify them, reach out to me.
3. Connect:
In these times of physical distancing, you need to provide online experiences and interactions that spark emotion so that customers can feel a genuine connection with your brand.
Sparking emotion and connection can be achieved through well thought out and well executed content marketing campaigns, such as our client Skoda’s Simply Older, Still Clever campaign.
While you can’t shoot these kind of videos due to physical distancing, you can still shoot content that connects people to your brand; we have a bank of visual content formats that we create for clients remotely.
4. Get started now:
If you don’t have the time to roll out a customer retention campaign in-house, we can help you. Contact me at gmiltiadou@zahramediagroup.com
