Although your marketing strategy may be focused on generating new leads, have you considered the value of re-engaging past customers? Research has indicated that repeat customers generate an average of 40% of a business’ revenue. Repeat customers also convert more often and have a higher order value than first-time buyers. This makes past customers a powerful market for your business, indicating the importance of not only having a marketing plan to acquire new customers, but a plan to retain and re-engage them as well.
The Importance of Re-Engaging Customers
Re-engaging customers has an impact on both business revenue and customer loyalty. According to HubSpot, it takes at least 5 purchases for more than a third of American customers to consider themselves loyal to a company, indicating the importance of bringing customers back to you. A 2020 statistic from HubSpot also claimed that company revenue can increase between 25% and 95% with just a 5% increase in customer retention. Loyal customers are also more likely spend more (and more often) at your business and can refer your products and services to their friends and family.
The Cost of Customer Retention
When it comes to re-engaging and retaining customers, the cost is approximately 7x less than the cost of acquiring new customers. Considering how affordable customer retention strategies are, investing in customer re-engagement and retention can have a huge impact for businesses.
3 Strategies For Customer Re-Engagement
As previously mentioned, re-engaging past customers can have a large impact on your business, both in terms of creating customer loyalty and in increasing sales. When launching your customer retention program, be sure to include these three strategies to encourage repeat business:
Social Media Marketing
The first strategy for re-engaging with past customers is utilizing social media. According to Statista, people spend an average of 144 minutes on social media per day, making it a great marketing method for your business. Not only can you stay top-of-mind with past customers, but you can draw interest from new customers.
A strong social media strategy includes a healthy blend of original content, shared content, comments, social listening, and data analysis. Social media is also a great platform to interact with customers and support strong customer service.
Email Marketing
Email marketing is a proven tactic that keeps customers informed about your business. Unlike the social media algorithms that may not show your post to all of your audience, emails get delivered directly to your customers’ mailboxes, providing a direct line of contact. Emails are also a great option to provide long-form content that might not fit in a typical social media post, such as highlighting new products and/or services or providing business news (such as holiday hours or new store openings). Email marketing can also provide incentives that encourage customers to return and make another purchase.
When utilizing email marketing, consider organizing lists of customers based on purchases and reaching groups in a more personalized fashion. For example, you can reach customers who have not made a purchase in the past 6 months and offer them a special incentive to shop again.
These are just a handful of the benefits of email marketing and why it is a great option for boosting customer retention! Check out our post “The Importance of Email Marketing for Your Business” for more information on what email marketing is and the impact it can have on your business.
Addressable Geofencing
Addressable geofencing is another great option for re-engaging with past customers. Geo-fencing works by capturing customers’ IP addresses when they enter the radius within a set location. At Media Venue, our addressable geofencing program takes up to a year of captured customer IP addresses and then targets your business’s ads to encourage them to visit your store again. This is a great option for inspiring customers to visit your store again, especially if they have not shopped at your store for a few months. A geo-fencing program also makes it easy to send a customized message or special offer to these past customers, an added incentive to visit your business again!
How To Start Re-Engaging Customers With Your Business
Are you ready to build brand loyalty and increase revenue? Then now is the time to start re-engaging your past customers! These three strategies are a great place to start, but if you need any assistance in encouraging repeat business, the Media Venue team can help. Our staff will gladly schedule time with you to better understand your business goals and collected data to build a customized remarketing strategy for you. Contact our Director of Digital Marketing—Cassie Rogers—for more information. Enhance your marketing investment with Media Venue!
Sources
Amaresan, Swetha. “27 Interesting Stats about Customer Loyalty You May Not Know.” HubSpot Blog, HubSpot, Inc., 25 Jan. 2019.
Bernazzani, Sophia. “Here’s Why Customer Retention Is So Important for ROI, Customer Loyalty, and Business Growth.” HubSpot Blog, HubSpot, Inc., 15 July 2020.
Clement, J. “Daily Time Spent on Social Networking by Internet Users Worldwide from 2012 to 2019.” Statista, 26 Feb. 2020, www.statista.com/statistics/433871/daily-social-media-usage-worldwide/.
Galetto, Molly. “What Is Customer Retention?” NGDATA, NGDATA, 25 June 2015.
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