Customer Retention is a BIG F’ing Deal
Customer retention is a segment of social media marketing that can easily be overlooked. Many of the brands we work with at Socialike are low-cost high-use items where customer retention can be most challenging. However, a constantly evolving social media marketing strategy is one of the best ways to retain your existing customers.
From a brand perspective, not much is worse than when a customer has been loyal to your brand but then gets bored with it and decides to try out one of your competitors.
With our DTC brands we strive for a 50% customer retention rate but this can sometimes be closer to 25%. Take this example; You have a haircare brand and your main selling item is a shampoo and conditioner combo pack for $45. A Facebook ad alone to acquire that consumer could cost more than the actual price of your product. Therefore, this acquisition cost only makes sense if that customer continues to buy your product.
If you are a brand that uses the distributor model, a true acquisition cost can be much harder to quantify. However, it’s still imperative to nurture your customers. One way to do so is by adding value through your social channels. Take this example; A customer has been buying your brand at Whole Foods for a few years. One of your competitors serves them an ad on Facebook. Immediately following their ad is a post from your brand. Since you know what resonates with your customers the best, they are more likely to pass over the competitor’s ad and focus on your brand. Because you are constantly adding value, the positive vibes your customers have of your brand are extending to not just using the product but to their online ecosystem, and they will not be as tempted to try another brand.
- Customers that subscribe to your newsletter tend to be some of the most loyal. Provide discounts exclusive to existing customers, ask them for their feedback and surprise them with interesting content that showcases your brand’s area of expertise.
- For example; when a customer signs up for your newsletter you can ask for their birthday and then send them a coupon a few weeks before.
- Showcase other non-competing like-minded brands. It’s all about adding value to your existing customers and since you have already gained their trust, a recommendation about another brand can go a long way.
- For example, one of our female-focused skincare brands partnered up with a plant-based feminine care brand.
All in all, retaining your customer is a big F’ing deal and should not be overlooked in your marketing efforts.