Every brand wants to hold onto consumers to win their trust and loyalty to develop a connection with it since the competition in the marketplaces intensifies brand owners because of increasing pressure to attract and retain customers. And there is no doubt in saying that, many brands also focus much on acquiring new customers but, I believe that the key to long-term success lies in retaining existing customers. Moreover, this is a constant concern for every advertiser because nobody would like his consumer to be a brand switcher wherein, retention marketing comes into the picture. A powerful retention strategy in place can really make a difference both in the brand presence and ROAS since it concentrates on engaging and nurturing long-term relationships with existing customers.
Retention is one of the most critical aspects for the growth of any business since it’s actually a blend of user satisfaction with the offerings of a brand which turns into user loyalty. Though brands focus on acquisition, I would like to say that they must simultaneously focus on retention as well in the early stages of campaign execution because doing so will reduce the chances of churn. This is because, if a user feels satisfied, valuable and gets catered with a better experience while trying and testing the goods/services of any brand, the possibility of returning to it get higher. Reports also say that loyal users are 5x as likely to repurchase as they become pretty aware of the brand’s offerings and USPs and often return to it to know what more it has in store.
Therefore, in my opinion, holding onto the already existing user base is better as they are a huge asset for any brand and in fact, as Ramadan is here so retention marketing can be a compelling factor for the brand’s growth and better ROAS as well. Let’s discuss the importance of retention in depth and how it does wonders for businesses.
In my opinion, a customer’s purchase or desired action doesn’t mark the end of a sale. Instead, it’s beneficial to offer related additional products through timely upselling or cross-selling based on the customer’s past behaviors with the brand. By doing so, the brand can create effective recall and notify customers of suitable offerings during the upcoming festive season. Upselling, cross-selling and following up with users not only retain them but also enhance the value of their current purchase.
However, sometimes a user stops using the app, resulting in churn which isn’t good for any business and to avoid this, retention marketing comes as a saviour. To prevent churn and grip the users’ interest in your brand, personalisation coupled with automated product recommendations can do wonders for brand presence and recognition. When a user is catered with personalised offerings, he rarely switches brands in search of products that meet his expectations.
I’d also like to point out that retention complements engagement because they have a direct and positive relationship. They both go hand in hand since user retention leads to repurchases and frequent repetitions of desired actions result in increasing user engagement rates. When a user gets the best of his needs and wants, he starts trusting the brand that drives quality engagement and often seeks to know more. This also helps marketers in analysing their likes and dislikes and improvises user journey for a better experience and more tremendous impact.
Retention marketing not only enhances the existing and loyal user base, but also keeps them engaged by frequently executing storytelling campaigns that incorporate innovative tactics such as rich media ads, gamification, rewards, exclusive deals and discounts, and much more. Such aspects when incorporated into a campaign execution encourage users to spend some time on it even if they have been lapsed or inactive too. When existing users and inactive users also return to the brand, the user base starts enhancing which helps brands outperform their competitors and enable users to choose your brand over others.
It is accurate to state that retention marketing plays a vital role in establishing long-term relationships with customers, boosting customer lifetime value, and facilitating the growth of a sustainable business.