In a market with increasingly competitive prices, what makes a brand stand out in the eyes of consumers is the value they perceive from the experience of contact with the brand. Keeping customers happy, engaged and buying is the principle of retention marketing. It’s all about relationship.
Retaining the client base seems like a complex task, but it gets much easier when you have the right technology and strategic partners. Besides, retaining customers is a lot cheaper than acquiring new ones. According to a study released by the Gartner Institute, the investment necessary in order to win a new customer is 5 to 12 times greater than the effort to maintain a current one.
The 2016 edition of the event was an absolute success. E-commerce has hit new records and realized something in the meantime: retention marketing campaigns were protagonists in the Black Friday stage.
Even before the event, a survey conducted by E-bit showed that 85% of respondents wanted to receive information such as tips, offers and promotions in the days before the date. Within this group, 87% stated that email marketing was their preferred channel for this kind of promotional campaign.
Still about Black Friday, a Social Miner study showed that only 15% of Black Friday sales were made by users who registered on the day of the promotion itself. Meaning that 85% of all orders placed that day came from older registrations or customers who signed up for pre-Black Friday warm-up campaigns.
It means that people were waiting for the offers to buy directly with the brands.
A successful case
Usually, the acquisition campaigns (Google, Facebook, and others) are great for bringing new customers and revenue.
This year in the Black Friday campaign Avon achieved an expressive e-mail result over acquisition tools. While EMM had a 25.83% market share in sales to direct consumers (B2C), other platforms performed below 20.57%. Proof that investing in your own base generates great results and excellent ROI.
Using customer data to develop personalized strategies is the key to good retention rates. In Avon’s case, the company is deeply familiar with its consumer base and considers information such as purchase history, preferences, browsing data and others to stimulate repurchase through highly relevant campaigns.
Avon manages its cross-channel campaigns relying on Pmweb’s technology and strategic services.
In summary, acquisition is a short-term investment. Retention is fundamental on the long run (medium and long term), in addition to representing an investment in the brand. It’s about creating solid relationships that generate profit. It about mesmerizing customers and increasing repurchase rates and lifetime value. Check out our tips on how to keep selling after Black Friday. There are several examples of retention marketing.