Why Retention Is As Important, If Not More Important Than Acquisition
Top companies succeed because they simultaneously mastering acquisition and retention. The acquisition game is changing (cost of acquisition gets higher as the market gets more saturated: for example, as Facebook ads marketing gets more popular, the cost increases as well) and the focus on retention is increasingly becoming the most important aspect to growth strategy.
What this means for you:
Yes, master acquisition! But also focus on retention- calculate your customer lifetime value, and your own data to hone in on the customers who are spending more in their first month and purchasing more than two times. (Research proves that this retain criteria produces the highest-value clients)
With this knowledge, build a clear strategy around turning first-time buyers into loyal customers.
What you can do:
1) Providing superior support and perks to customers to make a second purchase within 30 days.
2) Use e-mail marketing to nurture a relationship with your list, don’t just focus on getting new clients, be nice and serve the existing clients well.
3) If your customer lifetime value makes it possible, use phone calls/in person meetings to change the selling environment and gain their trust forever.