What is Retention Marketing?

Written By Kimberlee Keitt

You know how you work really hard to catch the attention of someone you like? Think about it: you go all out, do silly things, slowly ease them in.

Then, boom. You’re now in a relationship with that person and they’ve fallen for your crazy antics and flattery.

But…after a few months or years, things begin to wane.

You aren’t feeling the *spark* any longer. And…you’re beginning to wonder what led you to this person in the first place.

They may feel it, too. And now, you’ve got to work to save the relationship before they exit—quickly.

Hopefully, you don’t end up in this scenario and it could be avoided if you actually took the time to building and developing the relationship as much as the effort you put into trying to get the relationship in the first place.

Retention Marketing works similarly to this analogy and it’s as complicated or as simple as you make it. Retention marketing is a culmination of understanding your customer’s needs, wants and pain points and making sure they feel seen and heard, much like a relationship, and providing value-based information and benefits to keep them coming back and choosing you each time. If you’ve struggled with empathy in your relationships and not pouring into your partners or friendships, this may be a point of tension for you and hard for you to make the connection.

Retention Marketing comes into play after the customer acquisition phase: the “courting” stage as we like to call it. It consists of a system that is ultimately focused on the overall customer experience while increasing your customer’s LTV (lifetime value) and CRR (customer retention rate) over a period of time with your company, which would incrementally increase your company’s revenue. This usually happens when you have a winning MVP and that customer comes back because they want more and are interested in what you’re offering. But, we’ll get into that on another series.

Retention Marketing usually consists of these levers:

  • - Email Marketing

  • - SMS Marketing

  • - Loyalty Rewards Programs

  • - Private Communities and Events (digital and in-person)

Our focus at Intercom is developing the strategies behind those systems stated above to assist in every stage of your customer’s lifecycle with your brand.

Why is Retention Marketing so important?

It’s crucial to a business that their customers or clients continue to return to them for the service or product they provide because of the growth it has to that business. This results in the longevity of your business and reduces the need to continue to acquire new customers (this is when you start to look at paid advertising options).

If your customers only bought from you once and never returned, that indicates 1 or two things: 1) the quality of the product/service and it didn’t meet their needs (which is a QC issue and you will have to go back to the drawing board to restructure things), or 2) they don’t feel connected to your brand or company to be compelled enough to return, which is what you can work on and should work on.

There could be other factors including the lifecycle of the product, such as a consumable or maintenance product, people are going to buy once every 14 to 21 days to replenish their pantries. Or if you’re in medical aesthetics, your clients are returning to you once every 3 months to receive Botox injections for maintenance. However, if you’re in furniture, this is a longer lifecycle in which you’re selling a higher-ticketed item which is meant to last over the course of 10 to 15 years, and that repeat-purchase cycle may be slower, but that’s where you can begin to offer add-ons such as cleaning products that are “special” to your brand, warranty, accessories and more.

Aside from that, retention marketing is important to continue to build the relationship with your customer once you have them because it keeps them coming back, it builds brand equity and you are intentionally developing relationships that will overall help your growth and success if nurtured correctly.

Ready to connect with your customers and turn them into brand loyalists? Schedule a marketing audit with Kimberlee to learn more about your business and how we could help.

Kimberlee Keitt