{"id":11824,"date":"2022-11-15T06:00:00","date_gmt":"2022-11-15T14:00:00","guid":{"rendered":"https:\/\/www.rangeme.com\/blog\/?p=11824"},"modified":"2022-11-11T13:15:04","modified_gmt":"2022-11-11T21:15:04","slug":"building-a-customer-retention-strategy","status":"publish","type":"post","link":"https:\/\/www.rangeme.com\/blog\/building-a-customer-retention-strategy\/","title":{"rendered":"Building a Customer Retention Strategy"},"content":{"rendered":"\n

Most CPG founders are so focused on acquiring new customers that they don\u2019t spend enough time and energy retaining their existing ones. According to Neil Patel<\/a>, \u201cThe probability of selling to an existing customer is 60-80%, while the probability of selling to a new prospect is 5-20%.\u201d On top of this, customer acquisition costs for new customers are much higher than for existing customers.<\/p>\n\n\n\n

Are you building your strategy around retention first and acquisition second? If not, you should be as it\u2019s the foundation to building a successful business.<\/p>\n\n\n\n

Let\u2019s break down what a retention first strategy looks like and how to build one for your business.<\/p>\n\n\n\n

First, let\u2019s look at a traditional marketing funnel.<\/p>\n\n\n\n

\"Marketing<\/figure>\n\n\n\n

Ideally, each potential customer moves from awareness down to advocacy. Now it\u2019s called a funnel because at each stage you\u2019ll have fewer and fewer people moving to the next step. Sometimes it\u2019s because the product isn\u2019t a fit, while other times people are simply busy and forget. As a company, your goal is to:<\/p>\n\n\n\n

1) Build as many advocates and loyalists as possible, and <\/p>\n\n\n\n

2) Increase the number of people moving from one stage to the next without exiting the funnel<\/p>\n\n\n\n

Why? Advocates and loyalists drive more revenue at a lower cost than new prospects. This means higher profit and faster growth for your brand.<\/p>\n\n\n\n

With funnel understanding, you can build a customer retention strategy for e-commerce and retail. Let\u2019s take a closer look at what that can look like. <\/p>\n\n\n\n

Customer retention in e-commerce<\/h2>\n\n\n\n

E-commerce retention starts the moment a customer makes a purchase (in the diagram above that would be the Decision step). There are three critical points in the customer\u2019s post-purchase journey to address.<\/p>\n\n\n\n

After first purchase<\/h4>\n\n\n\n

At this point, the customer is taking a risk that your product will satisfy their needs while aligning with their values. As a company, you need to assuage any anxiety on both of these points.<\/p>\n\n\n\n

Welcome series<\/strong> – Welcome new customers with an automated email and SMS sequence using a tool like Klaviyo<\/a>. It should include:<\/p>\n\n\n\n