Are you planning effectively for Retention Marketing?

retention marketing

An average business loses around 20 percent customers annually for not maintaining healthy customer relationships. This percentage is variable and could go up to 80 percent depending on the type of business and industry. Usually, it takes lot of time, strategies and resources for converting a potential lead into customer and if a business fails to manage its existing customers, it will have to apply multiple resources every time it makes new customers. Nevertheless, businesses can apply less resources for maintaining existing customers which would be beneficial in long term as they become brand loyal. The focus on existing customer base for making them repeated customers and brand loyal is retention marketing which has become a trending concept in today’s competitive business environment. Effective implementation of retention marketing strategies depend on various factors and businesses have to consider their effective implementation otherwise marketing could become cost incurring.

Reducing Attenuation

Reduction of attenuation is a vital part of retention marketing. Businesses usually invest highly for maintaining strong customer relationships in early stages of customer management but gradually an increase of attenuation is observed. For this very reason, customers are detached from brands and this is devastating for marketing. So, reduction of attenuation is highly appreciable for strong implementation of retention marketing.

Sell it to existing customers for creating brand loyalty

Businesses set sales target whenever a new product is launched or a new phase of a product is started. Nevertheless, with the passage of time a gradual decrease is seen in sales target at businesses usually do not bother the situation. It is believed that sales is always high for starting days and it lowers with the passage of time. This delusion leads even when you generate leads online have an impact on retention marketing strategies. As for retention marketing, it is vital to sell and then sell again to existing customers by creating brand loyalty. For effective retention marketing, sales and its strategies are vital for coaxing existing customers.

Bringing back the lost customers

Some customers are lost with the passage of time or if they are not catered properly in terms of customer relationship management. These customers have larger tendencies to come back they are already familiar with the brand and need little persuasion. Therefore, when your marketers are motivated to generate business leads, you need to direct them towards communicating with existing customers regularly to ensure retention.

Customer Service

Customer service is an embedded tool of retention marketing. If a business is not providing effective customer service, it is not ideally implementing retention marketing. There is huge percentage of customers who do not bother to come back if they have a complaint or they are not catered properly. So an effective customer service is vital for bringing the vexed customer back and also for compensating them with their losses. There should also be a compensation and reward system attached with customer service.

Also discover  strategies to generate business leads by social networking sites.

Business Integrity

Businesses should also focus on what they have vowed to. Retention marketing is done for businesses which have high integrity of products and services. Products and services should be provided according to what is being marketed and vowed throughout the marketing campaign. It is vital because if there is no integrity of products and services, retention marketing could not be done as the customer would not rely on brand anymore.


Retention marketing has become major marketing tool because the strategy is simple and the results are effective. It also benefits business in creating a network of brand ambassadors as if a customer is brought back, he is definitely interested in brand and would spread word of mouth. It is cheap as there is no need of management resources because the strategy is applied on existing customers and their data base is already maintained while they already have an image of brand in their minds which otherwise id created through expensive marketing and selling strategies.


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