We talk to a lot of businesses about their marketing and I would say easily more than 95% of them are purely focused on acquisition (finding brand new customers) when it comes to their marketing. Now I’m not about to rubbish marketing acquisition strategies, they clearly have their place in the mix of activities, but to be solely focused on this is a big mistake, and here’s why:
About Retention Marketing
Indicative of the word, “retention” focuses on retaining the customers you already have rather than those you don’t. In focusing on these important customers you’re giving yourself a huge advantage. They know your business and they’ve bought from you before; you don’t have to do the hard work of getting them over the threshold – rather you now have to do the hard work of keeping them loyal! In this respect, communications to this audience can be highly targeted – based on buying history or personal attributes sometimes collected at the point of sale. For example, if you sum up the value of some of your best customers it may be wise to acknowledge and reward this loyalty with giveaways, previews or discounts. All of these activities can also feature within upgrade strategies too (see below).
About Upgrade Marketing
Also indicative, upgrade marketing focuses on trying to “up” the value of existing customers. This may be done through trying to get customers to convert to more profitable products (bigger margins) or simply more expensive products (bigger prices). Again, using customer data as a base to gain insights from, you can target the most suitable and relevant products at the right people – not every more-expensive product at every customer. Be intelligent in your approach.
Many channels, including the majority of digital marketing and PR (two areas we’re particularly strong in), are configured to focus on mainly acquisition marketing strategies. However, we strongly recommend clients always look at their existing customers before embarking on these more expensive and riskier activities.