So What Is Customer Retention Really Worth To Your Business Anyway?
Clearly when you initially look at things. It seems like you or your major competitors are going to an awful lot of trouble and potential expense. In order to attract potential first time customers, right?
Because initially you may not only be strategically A/B split testing different types of freebie lead magnet/list building giveaways. Right? And each paid ad or paid promotional campaign which falls just short of your overall marketing goals.
They still cost you or your major competitors money. Do they not. (And word to the wise right here.) Entrepreneur “if’ you’re actually investing your hard hard money on any type of paid or promotional advertising campaigns.
You better be consistently and strategically A/B split testing – if nothing else. Your main, “what’s in it for me?” Benefit to the end user power headline. Otherwise you may as well light a match to your ad/promotional dollars.
Because either way there as good as gone. On the other hand. If you’re seriously wondering what is customer retention really worth to your business or service. Major congrats.
Because this particular blog post was created specifically for.
So Are You Finally Ready To Embrace Some Proven Strategies For Customer Retention?
Good answer. But first. Stop and seriously consider the long term potentially profitable benefits of this all too common side by side comparison. Let’s take two local major competitors in the retail appliance niche.
And they they both sell extremely high quality goodies. And both have outstanding customer skills. And they both have state of the art WordPress websites. Company (A) for whatever reasons still insists on wasting a ton of money.
On the outrageously expensive, dismally performing traditional advertising campaigns. Which include but certainly are no limited to.
1.) First: Outrageously expensive local prime time TV ads. But in the morning and drive home commutes.
2.) Second: Outrageously expensive major local Sunday newspaper inserts. (And occasionally they also buy up full and half page ad space in several of their areas most popular throwaway guides as well.)
3.) Three: Those outrageously expensive, bank account draining local billboard ad campaigns. Some of which typically cost a whopping $25,000 dollars a month and up. Say what?)
So it’s easy to see “how” especially during the annual year end holiday rush. Their (or your traditional advertising costs!) can easily exceed $50,000 $75,000 dollars a month or more. Correct?
Savvy Marketers Know And Definitely Appreciate The Long Term Benefits Of Strategic Customer Or Client Retention!
Case in point. Entrepreneur “watch how” incredibly marketing savvy local retail appliance owner (B) manages to consistently generate a ton of both new and long term repeat business for literally pennies on the dollar.
Simply because they recognize the value of what is customer retention really worth to their immediate and long term bottom line. (For the record.) Both business owner have a pretty good idea of what their ideal customers total lifetime value metrics are.
It’s just for retail appliance business owner (B) they don’t have to consistently sacrifice as much on the initial front end of their customer acquisition sales funnel.
Because of their highly successful non traditional approaches to lead generation. For example. Here’s one of their proven marketing/promotional strategies. For both consistently and inexpensively generating first time and long term repeat customers.
And extremely high quality referrals. Again for literally pennies on the dollar. How you so skeptically ask? First. Take where both the owner(s) and some of their key associates. Including the managers and assistant managers go to get their dry cleaning done.
They’ve all literally known and done business with this particular, none franchised, single location dry cleaner for years. And have therefore been on a first name basis with both them and some of current key employees for quite a long time.
This being he case. Watch how they or their major competitors strategically leverage this potentially valuable friendship asset. (For the mutual benefit of both of them.)
You’d Be Shocked And Amazed At What Can Stem From Some Incredibly Humble Beginnings!
Let’s say (strictly) for hypothetical marketing convenience. This particular dry cleaners is located just two suites down from your retail appliance center. In the same popular mini mall.
And one day while you in there picking up order. You notice one of their regulars who drove up in a fairly new looking Beamer and picked up in excess of $75 dollars worth of dry cleaning.
And once they leave the store you ask the owner(s) if this particular woman is a regular or not? And they respond she is and has been incredibly loyal for over five years and counting. At which point your marketing creative juices start working over time.
So here’s what you or your major competitors initially propose for both their current and future customers. (Who meet certain pre- qualifications.) And both owners of the cleaners and their current and future employees.
And their current and future vendors. First going forward. Any time their current and future customers spend at least $30 dollars on any dry cleaning orders.
You or your major competitors will automatically pickup $20 dollars of the cost. Say what? Plus any time one of their current or future customers spends over $50 dollars on a dry cleaning job.
You or your major competitors will automatically pick up $40 dollars of the entire cost. Say what? Think about what these local men & women will definitely start doing. Both on and off of social media. Possibly before they even leave the store. Correct? Wouldn’t you? Me too.
But here’s your powerful marketing incite. Their major competitor. Retail appliance center owner (A.) There is simply no way they can consistently generate first time customers for anywhere near $20- $40 dollars per lead using outrageously expensively local prime time radio or TV or Sunday newspaper ad inserts. Correct? Agreed?
Plus they or you can’t run these outrageously expensive prime time ads only once. Right? They may as well not even bother. So let’s say the average cost per lead (CPL) works out to be $475 each lead generated via local prime time radio ad campaign. And $675 per lead generated via local prime time TV ad campaign.
Which one of you can probably afford to keep your campaigns active the longest. Bingo. Because remember once the customer gets over their initial shock from this totally unexpected surprise. The dry cleaner or whoever you local (JV) Joint Venture or cross promotional partner(s) actually turnout to be.
They will immediately hand them a sealed envelop with the words “You definitely deserve this!” Written in big read letters on the outside of the envelop.
So you know they won’t waste any time ripping the envelop open, correct? And this is potentially where the long term money making magic truly begins. Coming up shortly in part two. We’ll do a deep dive. But for now. Are you starting to better appreciate what is customer retention really worth to your business or service anyway? I sincerely hope so.
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