Acquiring new customers often involves marketing expenses such as advertising, promotions, and sales efforts. Retaining existing customers can be more cost-effective since you’ve already invested in establishing a relationship with them. It’s generally more economical to encourage repeat business than to attract entirely new customers.
Reducing Churn with retention campaigns
Churn, also known as customer attrition, can impact your business. A retention campaign aims to reduce churn by identifying and addressing the reasons why customers might leave. By proactively engaging with at-risk customers and offering solutions to their concerns, businesses can increase the likelihood of retaining these customers.
For a retention campaign, put together a mailing list for accounts or customers that haven’t ordered within a defined period. If you have the marketing data available consider segmenting the mailing list and create different versions focusing on a different appeal based on what you know about the segment.
Cross-Selling and Upselling Opportunities
Existing customers are already familiar with your products or services but often clients and customers are still receptive to being introduced to complementary or upgraded offerings, increasing the average transaction value and overall CLV (customer lifetime value). In your next campaign, identify a service or product that hasn’t yet broadly been adopted by your customers that may interest them to feature front and center.
A well-executed campaign to existing customers is an excellent strategy for increasing the value of each account. It involves understanding, engaging, and delighting customers to create lasting relationships that benefit both the customer and the business.
Find out more about how you can engage or re-engage existing customers by reaching out to our team today.