How Customer Retention is Eclipsing Acquisition in the World of Mobile Marketing
Some people approach marketing like a popularity contest: the more people who subscribe to your company’s SMS coupon list or like your Facebook page the better. The problem with that is a simple one concerning quality over quantity. What good is it having 1000 “friends” when none of them have any interest in what you have to say?
Cultivating a small circle of close friends can often be more fulfilling than hundreds of mere acquaintances, and it’s the same with potential and existing customers. In the world of mobile marketing there’s a constant battle between acquisition and retention, and there are 5 very important reasons why retention is winning.
The Monetary Cost of Acquisition
You might be bootstrapping your business and in need of some low-budget marketing strategies or perhaps you’re flush with cash but hoping to stay that way by not blowing dough on unnecessary marketing ploys. Either way, you’ll want to read this: depending on the source, it costs somewhere between 4 and 10 times as much money to acquire a brand new customer than to retain a customer you already have, and some experts insist that estimate is a very conservative one.
The Time Factor
In the past few years the process of planning out a digital media strategy has completely changed.
Think about what you have to do to attract and convert a new customer:
- Find them out there in the mobile/online ether
- Fight through the digital dissonance to be heard above your competitors
- Introduce them to your brand
- Convince them your business is of value
- Sell them on your product or service
- Help them complete the purchasing cycle (is your m-commerce channel intuitive and streamlined?)
- Use content marketing and various forms of mobile engagement to keep them coming back for more
It’s a complicated process, but it’s 100 percent worth it if it puts money in your pocket and the cost-profit ratio is reasonable. But consider this: when you’re selling something new to an existing customer, you’re basically skipping to the fifth step, and the whole convincing part is typically a lot easier because you’ve already built up buyer confidence and perhaps even a sense of loyalty.
Putting it into Practice
The things that affect the efficacy of the individual components of mobile marketing also typically affect the whole.
A recent piece about the 5 important things that can impede email delivery (not in the technical sense but rather in regards to open rates and actually reaching and converting consumers) outlines it all beautifully:
- Be consistent in your message, how you post on social media, and how you treat your customers
- Embrace quality over quantity (there are those words again!) and maintain the high standard you set for yourself
- Remember the importance of proper formatting, including ditching memory-killing graphics and videos and incorporating responsive design
- Build a reputation and make it mean something. Your brand is not just a logo and color scheme, it’s how you’re perceived and what everything about your business stands for from your blog to your products to your charitable endeavors
- Pay attention to absolutely everything, including what your customers are saying about your product or service – and remember that complaints can be even more valuable than compliments
Eighty-nine percent of companies surveyed said they believe customer experience is a key factor in increasing customer loyalty and retention. It really is about the whole package; you can offer discounts and implement flashy websites and give out free content every Friday, but if it doesn’t all come together in a customer-friendly way none of it really matters.
Experts estimate that mobile advertising will account for a whopping 72 percent of digital ad spend in the United States by 2019.
How you spend your portion of that money is up to you, but the smart bet is – and will likely always be – on customer retention.
What do you think of what I’ve covered so far? Will you adopt mobile as your tool for marketing? I would love to read your comments below.