In the age of easily distracted consumers, engaging prospects and winning customer loyalty is a massive gap to fill. If there is anything that the last two years of the pandemic have taught us, it is to value customer retention as much as we value acquisition.
Customer retention is the key differentiator between enduring businesses vs those that end up struggling despite massive budgets. In 2022, retention will be the epicenter for businesses to scale revenue. If you haven’t added customer retention to your growth playbook yet, now is the time.
Most digital-first businesses lack the resources or expertise to utilize a full-proof retention engine to their benefit. Of all, the small and medium entrepreneurs struggle to break through the complexities of customer journeys, data silos, and unified targeting, which ends up pulling the businesses back to the most familiar and comfortable approach – customer acquisition.
To make the big shift in 2022, brands aiming at scaling their revenue will align their goals towards retention-led models. Here’s how they can do it.
Instil a retention-led culture
Any brand’s most potential customers are the ones they already have. According to a report by Forrester, existing customers account for more than three-quarters of annual revenue for organizations.
Brands across the globe spend a ton of money on acquisitions but ignore the gold mine they already possess – their existing customers. These users know you already and can easily convert with a slight nudge.
Persuading existing users to make repeat orders translates to profits and a long-term database of loyal customers for your business. It is imperative to instil a retention-led growth model among product and marketing teams within the organizations to power stellar retention models that ensure optimal outcomes.
Unify and activate data with customer data platform
Today, customer retention strategy is not limited to product offers and discounts; it is more than that, and that’s exactly what a customer data platform (CDP_ makes you realize. It gives power and convenience to track user data from everywhere and offers you a unified perspective of your customer activities.
Keeping a CDP in place helps brands track their user events on every touchpoint across different channels, providing an all-user-in-one-platform experience. These data analytics help brands determine the most effective messages to engage them.
An effective CDP brings all the data together in a single source of truth for businesses to activate personalization campaigns, delivering consistent customer experiences throughout the journey and reducing user churn rates.