Retain to Gain - The Impact of Retention Strategies

Why are most organisations only focusing on acquisition? The CPA's are high, most customers will join and leave within 12 months, and other factors such as customer service costs aren't considered.

So why not focus on what you already have? Your existing customers! And why not take these existing customers to the next level!

Retention seems to be on the back of most organisations because we have so many marketing agencies and agenda's focused on acquiring new customers to achieve growth.

Growth can be most accomplished in the most cost effective way, by focusing on your existing customer strategies, and how to increase the customer lifecycle value of them.

Its cheaper to focus on your email marketing strategies, and create new targets for 'Cost Per Retention', and increasing your customer product holding rathe than spending x amount on CPA costs.

By creating strategies & budgets that factor in loyalty, rewards, and that je ne sais quoi quality to your existing product, you can boost your retention by up to 50%.

The strategy to retain will depend on your product, and the service along with it.

For example, within the service sector, to keep the current customer you'll need to focus on providing add-ons, or rewards to your tariffs, and with the focus that your customer lifecycle value increases by increasing product holding, and lowering customer service contact.

Growth can accelerate rapidly through acquisition, but real growth comes from nurturing and keeping hold of everything you acquired in the first place.