It costs five times more to acquire a new customer than it does to retain an existing one. Yes, you read that correctly. Customer retention and loyalty are key to an effective revenue strategy. So why do companies spend so much of their time trying to reach new customers instead of focusing on the ones they already have?
Some of this could be due to the fickle nature of customer behavior in recent years. It’s increasingly difficult to capture and keep someone’s attention, and the number of touchpoints needed to drive a sale seems to increase every year.
Many companies are failing at loyalty programs and strategies. So how can they adjust these strategies to succeed amidst the difficulties of today’s economy?
Loyal Customers Are Your Brand’s Influencers
While there’s still power in having and executing an effective influencer marketing strategy, your loyal customers are bigger influencers.
A whopping 83% of people rely on recommendations from people they know, and 66% report that they rely on online reviews. Customer retention software gives you the ability to find your most loyal customers and nurture them along their journey with your brand, so they are getting the best possible service.
Customer retention software works by sending targeted messages to previous buyers at different points along their customer journey. Companies like AdRoll do this through targeted data integration platforms that deliver applicable analytics, analyzed by artificial intelligence, so you’re always sending the right messages via the right platforms at the right time.
Through the power of AI, brands can be sure they’re sending the right communications when customers are at their most receptive. And they can send ads tailored to the preferences of each customer, so they’re more likely to engage. Customer retention software and customer loyalty strategies are nothing without the data and analytics to back them up. When you craft such a personalized experience for your customers based on data, they’re more likely to speak positively about your brand to others.
Why Retargeting Is So Important
Retargeting is important for customer retention, but overall, it is simply good marketing sense. If a visitor comes to your website and visits some core pages, they’re a potential customer. It’s that simple. At the same time, 97% of people don’t make a purchase on their first visit to a company’s website. That’s why correctly utilizing this strategy is so important.
Retargeting helps nurture visitors to your site toward making a purchase. Data analytics and artificial intelligence take this to the next level by offering more personalized recommendations to your future customers, so they’re more likely to opt-in. It also helps you maximize your sales potential by reminding customers of products they loved and getting them back in the sales funnel and closer to making a purchase.
Some studies say that customers have more interactions than ever before prior to making a purchase decision—24 touchpoints, to be exact. This rose from 17 touchpoints during the pandemic. With this increased number of touchpoints comes a greater need for comprehensive data and AI to help companies to create an omnichannel experience.
While AI and emerging technologies like it are paving the way toward the future of marketing—and helping marketers craft the best strategies available to ensure customer retention—the humanity of a brand cannot be neglected. Make sure your brand’s messaging plays to the human emotions of your customers and that your staff embodies the brand in all of their communications and customer interactions. This will help tip the scales in your favor and better integrate data and AI with an irreplaceable human touch.