Retention strategy marketing puts the emphasis on creating loyal customers who repeatedly engage with your Digital Marketing Agencies Newcastle business after their first purchase, while increasing the monetary contributions they are to your business from time to time – whether it is through volume purchases or through a shift from cheaper to products more expensive. The success of marketing campaigns as usually measured in terms of retention rate.
A study published in the Harvard Business Review concluded that companies can increase their profits by 25% to 95% only through an increase in their customer retention rate by only 5%.
Perhaps the more important findings is that the cost to acquire new customers is usually much higher for online-only businesses compared to competitors with both online and physical store.
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This provides a great incentive, for the pure-play companies in particular, for more of their resources to focus on retention marketing framework. They will want to convert most of the buyers one for loyal clients since, in industries such as electronics retail clothing, for example, it costs anywhere from 20% to 40% more to attract fresh buyers when compared with companies with both physical and online stores.
For the purpose of this post, we need to define some key terms: the buyer, one buyer, back buyers and repeat buyers.
Buyer – site visitors who have either never purchased after visiting the site or just make a purchase;
buyers one – visitors who only make one purchase on your website without ever visiting the site again;
Back buyer – after the site visitor makes a purchase, then visit the site and make a purchase either more or not buy anything;
Repeat buyers – clients who have made a purchase on the site at least twice and was then returned to the site at least once after their second purchase.
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In order to understand how to build an efficient marketing retention strategies we must look to build brand loyalty with shoppers once, back buyers and repeat buyers. In doing so, your business will maximize the potential of these three demographics in terms of increasing revenue per visitor (RPV). As we shall see, is targeting these groups will also have a positive effect on customer perceived value. Growing reputation of your brand as well will bring new customers and shoppers converting back to the buyer.
Once you understand how the value of marketing and retention marketing can both increase the RPV in returning customers and lead to more successful customer acquisition Digital Marketing Company in Newcastle campaigns, you will be well on the way to maximize the potential return and repeat buyers for your business growth.