An A-Z guide to retention marketing.
Written by Vanshitha M
Published on Apr 04, 2024
Introduction
Retention is an art, but only a few can crack it. To sort out this play, we have compiled the best strategies for a beginner at Retention Marketing. I have read the book from WebEngage to help every beginner start their journey. You can download their ebook here.
This is an overview of the book:
1) Why Retention over Acquisition:
Not retaining the acquired users will create a waste of resources and hard work. So, the CAC (Customer Acquisition Costs) increases. This is a great analogy given by WebEngage.
Source: WebEngage
So, this book asks marketers to focus on retention rather than acquisition.
Source: WebEngage
- Increasing customer retention rates by 5% boosts profits by 25% to 95%.
- It costs 5 times more to retain a user.
- 70% of respondents agree that it’s cheaper to retain than acquire.
- Retained users spend 31% more and 50% are more likely to try a new product of your brand.
2) The change in the marketing funnel:
Previously, the marketing funnel used to look like this;
Source: drip
This was too focussed on acquisition but as the world moved to understand the importance of retention, the funnel changed to;
Source: WebEngage Ebook
This marketing includes
- Awareness: Find the target audience who might be interested in your product/service.
- Engagement and Discovery: An onboarding experience. We at Retenetion10 also wrote an article on this, check out that blog here to know how to on-board your user in style.
- Purchase and Adoption: This is a CTA to guide and lead your users to make a purchase.
- Ensure to fulfill the needs of users constantly so they don’t move to another brand.
- Retention: Ensure customer service and updated products that fulfill your user’s needs so keep coming back to your brand.
- Expansion and Advocacy: Keep marketing that makes sure your users advocate your brand to others. You can check out our blog on Loyalty vs Retention here.
3) Will you lose your USP (Unique Selling Proposition)?
Knowing the strategy but not getting the right approach is where you lose track.
The way a B2B brand and a B2C brand deal with retention and users vary.
Source: WebEngage Ebook
4) Why do only 21% of B2C companies have a retention team?
- Even if the data doesn’t agree, people are still valuing Acquisition over Retention.
- Communicating with the audience is tough.
- Optimizing the marketing between different devices is tough for the brands.
- A perfect threshold should be held between communicating and not spamming.
- The personalization is given utmost value in retention but this is difficult in the practical sense.
- The way a copy or content works is changing every day, and the attention span is reduced.
- Understanding the intent of the users can be tough to comprehend.
- Leverage this technology.
In a nutshell, pave the way to communicate, engage, retain, and monetize your users more successfully.
5) The technology that can make this procedure easier for you:
- Identify users and user behaviour.
- A synonymous marketing campaign across all the channels.
- Not communicating on the whole or over-communication as spammy is wrong.
- Make sure all the engagements are on one platform.
- Analyze all your campaigns and set a threshold for everything.
- Test A/B and expand the successful campaigns.
- Design and Optimize then execute.
6) An overview:
Consumer Marketing was about product/service visibility.
→ The traditional ways are out of tradition.
→ Customer acquisition without retention like a leaky bucket.
→ The shift allowed for customer-centric businesses.
→ Communication with the users to improve CLTV (Customer Life Time Value).
→ Establishing a funnel that makes users become ambassadors of the brand to spread the value.
→ A B2B purchase is based on logic whereas a B2C purchase is based on emotion. Work out the game plan respectively.
→ Utilize all the modes and devices of communication.
→ Leverage technology perfectly.
7) How to get started with Customer Retention
- Identify your users.
- Identify your channels of communication.
Source:
WebEngage is a multi-channel user engagement platform that automates communication across users’ life cycles. They want to create personalized experiences for brands on a massive scale. WebEngage wants to bring the human touch back to marketing.
Conclusion:
Marketing has a gameplay that consumes a lot of time and effort but once cracked, it’s easy to follow. But if you want to streamline your retention to ensure maximum efficiency,
Book a call with Retention10 right away.
Thanks for reading.
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Vanshitha Munipally
( Research & Content Marketer )
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