Retention Marketing explained
While traditional marketing tends to focus on bringing in new clients, retention marketing prioritises relationship-building over one-time transactions.
To do this requires cultivating existing relationships toward greater levels of trust and loyalty. In essence, your end goal should always be a client returning to you as their trusted good/service provider whenever their need arises.
The value behind valued clients
For small business owners, investing in retention marketing can yield large cost-efficiencies over chasing sparkly, new clients. In fact, studies from Bain show that acquiring a new customer can be five times more expensive than keeping an existing one. While on the other hand, increasing customer retention rates by just 5% can increase profits by 25%. So, what’s the magic behind these numbers?
In-built marketing:
Long before the ‘Age of the Influencer’, clients used to act as the primary brand ambassadors for a business. With more small businesses out there every year, it makes sense that a positive testimonial from existing customers creates an instant level of trust with new clientele. This makes client referrals a cost-effective (if not, free) marketing tool to lead new clients to your door.
Longer life cycle of services:
Once a client’s trust is earned, it’s more likely they will continue to use your goods or services over time, creating the opportunity for cross-referrals and securing valuable long-term profitability.
The price of loyalty:
If a client stays loyal to you, you’ve clearly proven your value, so they’re less likely to quibble over costs. Clients are generally willing to pay a premium to keep continuity of goods/services rather than swapping to a competitor, with whom they’d have to start from scratch.
Retention Marketing strategies
The bar to achieving loyalty is undoubtedly getting higher as time goes on. Retention marketing for small businesses therefore calls for a nuanced approach. This is where you have a competitive advantage – the magic of a personal touch.
Your business is likely already well on its way to perfecting the art of the personal touch if its core focus is on:
Proactive communication:
Personalisation builds trust. By remembering key client details, taking the time to check in occasionally and providing tailored service wherever possible, clients are less likely to feel like just another number.
Sharing Client-specific updates:
Share client success stories (while maintaining privilege, of course) and industry-specific insights tailored to relevant clients.
Adding a face to the name:
Introduce clients to your wider team if applicable and make sure they know who will step in to help them if you aren’t available.
Tailoring communication:
Adapt to client preferences – do they prefer emails? Phone calls? In-person chats?
Showcasing testimonials:
Encourage clients to share their positive experiences via Google Reviews, LinkedIn, or your website and reward them for doing so.
Measuring Retention Marketing Success
With proper principles in place and your personal touch perfected, how do you know if you’re keeping your clients?
Online reviews/ratings:
Keep track of your business’s reviews, ratings and feedback with Google Review and monitor client interactions across your social media network.
Client feedback:
End of job surveys (ideally, anonymous) can provide valuable insights into client satisfaction.
Referral tracking:
Ask new clients how they found your business. Referrals from existing clients is symptomatic of positive retention, but make sure to show gratitude to referring clients with gifts or a personalised thank-you to keep the engine humming.
But most importantly, don’t let a good thing get away.
Like any healthy relationship, the secret to retention marketing is client trust, appreciation, and respect. By building a retention marketing plan that cultivates these qualities, you’re building relationships that stand the test of time and offer a bright future for your small business. Afterall, clients may come for the expertise, but they always stay for the experience.
