What Is Retention In Marketing?
The term retention in marketing means to bring back your existing customers through a marketing strategy.
It focuses on increasing the rate of old customers and bringing them back to your shop. Retention of the customers is important for customer acquisition.
“A customer never buys a product or service from you, he pays for the trust and solution offered by you.”
Old customers are the base of any organisation so if any organisation is having a strong customer base then the organization have to focus on different marketing strategies known as retention in marketing.
The existing customers increase the profits and it is easier take to provide a service to them because they were familiar with your business. It helps to increase the profitability of your business.
Why Retention In Marketing Is Important?
Retention is much better than acquisition. Retention in marketing is mandatory and useful to build the brand value of your business with the existing customer base.
You don’t need to work on developing a new customer base and for that, you don’t have to work on collecting extra information.
In this type of business marketing strategy, your existing customers will grow your business by repeatedly buying from you.
Importance Of Retention In Marketing:
Here are 7 reasons why customer retention is important.
1. Reduces The Marketing Cost:
2. Repeated Buying
3. Free Publicity
4. Revenue Generation
5. Building A Brand Value
6. Customer Engagement
7. Valuable Feedback
Let’s understand the benefits of these reasons in detail:
1. Reduces The Marketing Cost:
Customer retention in marketing is to be considered an opportunity to increase revenue by repurchasing the customer.
Retention marketing allows you to gain your existing customers but at a very low cost and you have to remind your customers about your business to visit again.
A company can retain the customer by maintaining a relationship to delight them through the products or services.
2. Repeated Buying:
Retention in marketing strategy helps to understand your loyal customers through their purchases.
This buying from your loyal customer will add an extra profit to your business. This repeated buyer increases the brand value by showing trust in your product and services.
To satisfy your loyal customers, understand their needs by observing past purchases and offering them similar types of products.
3. Free Publicity:
Free publicity or mouth publicity plays an important part in retention in marketing strategy.
This mouth publicly is totally free and very much effective to grow a business.
Customers will automatically tell others about the product and services after getting satisfactory service from your side.
Positive mouth publicity attracts new customers through mouth publicity and these customers will genuinely promote your business.
4. Revenue Generation:
Your existing and loyal customers will help to increase extra revenue up to 20 to 30 per cent.
These customers are not price-conscious because you provide them with the best service to satisfy their needs.
These customers will not argue about offers and discounts because they have used your products and services.
5. Building A Brand Name And Value:
Most brands concentrate on retention in marketing techniques for acquisition.
These loyal customers became promoters for a business and help to promote the business in such a way that indicates the prestige and brand value of the business or a company.
Promotes will promote the business and they will tell others to join you that showing your brand value in the market.
6. Customer Engagement:
Customer engagement is very much essential to enjoy a healthy business for a long time.
Once the customers enter your business they could be happy and satisfied with your services and for that building a customer relationship is important.
It feels to them that someone is available as a caretaker of their needs.
7. Valuable Feedback:
Customer feedback indicates the area of improvement in your business if you work on it seriously.
An excellent customer service experience could only provide after working on the feedback of your customer.
You can implement new changes to make your service much better. Customers will not continue business with the company if it ignores the feedback from customers.
Retention in marketing increases your brand value and you can expect growth in your revenue.
This is a positive sign for your business so you can’t ignore the existing customers. It also helps to build up a strong relationship with your customers.
They trust you so they will give you money against products and services and you have to offer them value.