In an ever evolving online marketing competition, the quest for new customer acquisition has been so fierce that most online business owners or managers forget to pay any attention to repeat business or referrals. Though the drive for new customer acquisition is a veritable effort in customer base expansion, it has nonetheless dwarfed the effort, if any, on customer retention modeling - which keep clients coming back - a spillover benefits for sustenance of any business.
Customer retention is a cyclical business process whereby clients that had previously engaged in business transactions keep coming back for further transactions. This sort of business process is cost-effective and worth pursuing with any logical strategy.
Case for Customer Retention Modeling:
Let's take a hypothetical scenario, where it cost a firm $2,000 on a marketing campaign to acquire 20 customers with a conversion worth $4,000 on average spend of $200 each, resulting to a net profit of $2,000. Whereas this is a commendable profit margin, the bottom line is that it would cost same firm a tiny fraction of their original campaign spend, to cause these same already acquired 20 customers to engage in same transaction as repeat business that will rake in same $4,000 with a well developed customer retention follow up strategy.
If the first sales conversion from a customer resulting from acquisition effort is all that matters, then the effort is not worth it. In fact, it is usually subsequent transactions, having earned the customer's trust that really matters to the overall growth of any business. This is where the magnetic touch of "Customer Retention Persuasive Modeling" pulls the power of repeat sales generation.
Customer Retention Persuasive Modeling Overview
Persuasive strategy is the brain-box behind customer retention which by extension is the prime source of competitive advantage. Earning money from closing a sale with a customer - though a valuable task - is far from been the end of business transaction. But devising a retention strategy in a manner that keep your customer coming back is what actually places your business in competitive advantage. The sharper your marketing persuasive strategy, the higher your profitability base level.
Customer trust is a crucial factor to repeat business circle. While it may not be difficult to attract new customers through sales promotion jingo, it is only by earning the trust/value relationship of customers that a business can run efficiently in the long haul.
The grand practices to ensure trust is what instill loyalty in customers. When this is done, the maxim that "Trust is Business" will kick in and some magnetic boost will be added to your business output.
Customer's satisfaction is what build trust that ultimately culminate into repetitive business. Satisfaction occurs when a product's described qualities accurately reflect reality. The marketing hype of inflating features of a product, greater than the actual worth of the product will sell - but just for once. When customer finds the product or service to be at variance from what was actually advertised, they will not return for a second purchase due to absence of fair deal.
Customer's trust and satisfaction has always been a key weapon to repetitive business that keeps firms within or above competitors. Competitors with flourishing business output will attest to this fact - while businesses that focus solely on income statement at the expense of customer's trust and satisfaction will always perform below optimum base on the long haul.
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