The short answer: Keeping customers is easier than finding new ones. Your chance of selling to an existing customer is 60% to 70%, compared with 5% to 20% for a new customer. Regular communication, especially through social media and email marketing, keeps you in front of the people most likely to buy from you again.
The team at Moxie Creative isn’t much for gambling 🎶 we work hard for our money 🎶. However, if we had to place a bet, we’d wager it safe to say that retention rate is something you often look at as a business owner. And for a good reason, too. Your existing customers are more likely to purchase from you than new customers. Trust us; the data doesn’t lie.
- There is a 60-70% chance of selling to an existing customer.
- Meanwhile, the chance of closing a sale is just 5-20% when it comes to new customers.
One of the things you can do to keep your current customers front and center of your business is to market to them regularly. Knowing you’re there will make them more likely to purchase your product or use your services. If you’re in the background, they’ll likely move to your competitor, who shows more value.
Why Should You Prioritize Customer Retention?
- Create a unique customer experience.
- Educate your customers on your product or services.
- Gather customer feedback to make changes from within.
- Showcase the value you can provide vs. your competitors.
- Create lasting relationships.
As we quickly approach one of the largest spending seasons of the year, it’s more important now than ever to show up for your customers. Let them know you’re there and how you can help. If you don’t have a strong customer retention strategy heading into the holidays, keep reading.
Pro Tip: These are realistic tactics for ALL industries, not just retail. The holidays are a time for family, which tends to pull at our heartstrings (and pocketbooks), so gear up for more business!
In this blog, we will take a deeper look at two of the most used methods for customer retention – social media and email marketing. These main methods are used by 28% and 52% of businesses, respectively, to increase their retention rate.
How Does Social Media Help You Keep Customers?
Bottom Line: Developing the strategy is half the battle; the work is really in the doing. Social Media is great for creating trust and open customer communication, making it critical to your overall marketing strategy.
How Does Email Marketing Keep Customers Coming Back?
Ask any marketer out there, and they will tell you that email marketing is the most effective form of communication. With 4 billion email users daily and more than 306 billion emails sent and received each day, email marketing is buzzing and is only expected to get larger by 2025. This makes email marketing a no-brainer for any business. But it can also be tricky.
There are a lot of questions asked about email. How often should you send one? What is the best day and time to send? How do I create the best subject line? The fact of the matter is this may be different for everyone. Looking at your target consumer, goals, budget, and time can help you answer some of these key questions. If you get stuck, don’t hesitate to ask for help!
Bottomline: When a customer gives you their email address, it is an invitation to reach them on a more personal level. They are inviting you into their space and welcoming conversation. Don’t let that go to waste. Sending regular communication can result in customers for life.
In addition to social media and email marketing, the following are great to have in place:
How Can You Stay in Touch With Customers When You're Short on Time?
Frequently Asked Questions
Why is customer retention important for small businesses?
Existing customers are much more likely to buy from you. There is a 60% to 70% chance of selling to an existing customer, compared with 5% to 20% for a new one. If you stay in the background, they’re more likely to move to a competitor who shows more value.
How often should a business post on social media?
Plan to post multiple times per week with quality content that adds value for your followers. Social media is a long game, and one post won’t solve your problems.
How often should I send marketing emails?
It depends on your target customer, goals, budget, and time. What matters most is sending regular communication, because a customer who gives you their email address is inviting you to reach them on a more personal level.
What else helps keep customers engaged?
Along with social media and email, a mobile-friendly website, paid search, monthly blogs, SEO, direct mail, billboards, and company profile videos all help you stay in front of your customers.
