Cost-effectiveness of retained customers can boost the company's profit by 25-95% according to the latest study whereas attracting new customers can cost 6-7 times more. An increase in profit from return customers is explained by a simple fact that over some time regular clients buy more from a trusted brand than from unfamiliar competitors. What’s more current loyal customers can refer their friends to the company and help a brand acquire those customers that stick to it longer.
This is the case when a brand becomes a friend of a friend and builds the relationship based on positive bias. Thus, a marketer has to develop a 360-degree feedback algorithm that allows to foresee the current customers’ preferences, discontent or disappointment with a product or service.
We all know that acquisition is less time-consuming and can bring results faster. Perhaps, this is the main reason why small businesses plan to spend 72% of their budget on customer acquisition and only 28% on retention. Yet if a company wants to cut operating costs on the service and reach a long-standing customer, retention is the best prescription. Which is why a marketer should change a content marketing strategy in such a way that it could strengthen a bond between a repeat customer and the brand’s positive image. For this reason, StudentShare editorial team has gathered 8 retention tools that can help develop an efficient content marketing strategy in 2017.