Editorial
The Gist
- Retention marketing. Positioning CX as retention marketing emphasizes its proactive, action-oriented nature, leading to tangible business benefits.
- Cost-effectiveness. Retention marketing is cost-effective, leveraging existing customers to maximize value and minimize acquisition costs.
- Competitive advantage. Exceptional customer experiences differentiate businesses, enhancing brand loyalty and providing a competitive edge.
Having trouble persuading leadership to invest more resources into your organization’s customer experience program? Try shifting the semantics of the conversation from "CX" to "retention marketing." Because the two are really one and the same.
Let me explain.
Breaking Down Retention Marketing
In a world obsessed with the thrill of acquisition, position retention marketing as a beacon of sanity.
Here’s how to frame the conversation.
The moment a customer buys from you, a transaction can be made into a relationship. But only if you capitalize on the small amount of trust they’ve already given you and grow it into loyalty. That’s retention marketing. And even though it’s the same as customer experience, reframing it into a form of marketing gives it the kind of proactivity that demands action. It places CX in an offensive position rather than a defensive one.
Related Article: Customer Retention: Strategies, Key Metrics & Examples
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And Suddenly, Laying out the Smart Business Reasons for Just Such a Strategy Becomes Easier:
- Cost-effectiveness: Almost every business leader knows that acquiring new customers can be significantly more expensive than retaining existing ones. "Retention marketing" CX allows businesses to maximize the value of their current customer base without incurring the high costs associated with constantly seeking new leads.
- Stable Revenue Stream: Existing customers are more likely to make repeat purchases, providing a steady and predictable recurring revenue stream. By nurturing these relationships and encouraging engagement, businesses can better prepare for revenue fluctuations and better maintain financial stability.
- Word-of-Mouth Marketing: Delighted customers are more likely to recommend products or services to others, serving as brand advocates and driving word-of-mouth marketing — which of course, is the most powerful form of marketing a company can tap into.
- Competitive Advantage: Exceptional customer experiences are a powerful differentiator. Businesses that prioritize retention marketing CX and deliver outstanding service establish a competitive edge, setting themselves apart from competitors and enhancing brand loyalty.
- Feedback and Improvement: Engaging with existing customers provides valuable feedback that can inform product development, service enhancements and overall business improvements. By listening to customer needs and preferences, businesses can continuously iterate, staying ahead of the curve and meeting changing market demands.
- Resilience to Market Volatility: During economic downturns or periods of uncertainty, loyal customers are more likely to stick with brands they trust. Retention marketing builds strong relationships that withstand external challenges, ensuring resilience in the face of market volatility.
Notice how I’ve highlighted each action word in the above benefits. There’s nothing passive or reactionary about retention marketing.
And at this point in your pitch, it’s probably safe to point out that retention marketing is merely customer experience done right.
Related Article: Boost Customer Retention: 6 Proven Strategies to Ensure Loyalty
Now, It’s Time to Lay out the Building Blocks of a Good CX Strategy:
- Learning Your Customers: Frame the art of personalization not just as a data game, but also as a deep dive into the desires and consumption behaviors of your customers. By understanding their preferences, their pain points and their overall journey, your team will be better able to interject your offerings into their narrative, creating a message uniquely tailored to each consumer segment.
- Consistent Communication: By using what you’ve learned in the previous step, determine how to communicate with your customers. And then do that consistently. This isn’t about words — it’s about resonance. Staying in tune with what your customer segments are most receptive to demonstrates your commitment to their happiness and will drive your team one step closer to winning loyalty.
- Exceptional Service: Treat customer service as more than a department. It should be a philosophy. Every interaction is a chance to learn your customers better and, ultimately, create repeat purchases. A lot of them.
- Continuous Improvement: The path to loyalty is paved with feedback. Listen. Then iterate relentlessly based on what you discover.
This is a playbook that’s easy to understand and, when coupled with the previous points you’ve made so far, a no-brainer to implement and support.
Related Article: Capturing Loyalty: The Science of Customer Retention Marketing Reporting
Final Thoughts
As you make your case to leadership for more CX support, the approach I’ve found that works best is emphasizing the action-oriented nature by shifting the framing, at least initially, to "retention marketing." Focus on the power of driving repeat business. This approach is likely to help your leadership team ensure you are well-equipped to champion a customer-centric approach that delivers tangible results for your organization and set your team up for success from the get-go.
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