Customer Retention Marketing
Customer retention marketing is a key component in maintaining a profitable business. The goal of customer retention marketing is to convert first-time or occasional buyers into loyal long term customers.
In the constant battle to gain new customers, it is easy to overlook the value the existing customer relationships hold. All profits are earned from conducting successful relationships with customers.
As the source of all your profits, customer relationships should be valued and protected.
Every customer relationship is an asset and has an economic value or Lifetime Market Value (LMV). A customers LMV is determined by taking your average customer transaction amount and multiplying it by the number of transactions he or she will conduct with your organisation over time.
If your customers begin to feel ignored or neglected, won’t they ultimately take their business elsewhere? Every business gains and loses customers. Customer satisfaction is critical to gaining more customers and losing less of the ones you already have.