This means that if you keep the same amount of money spent on retaining existing customers, you will get a better return on investment. In fact, according to Kissmetrics, it costs 7 times more to acquire a new customer than to keep an existing customer.
Therefore, a good customer retention
Strategy can help you ruce marketing costs and increase profits. What is the trade-off? After understanding the importance of customer acquisition and retention,how to allocate budget. We must do this at the same time, and the only thing that will change is the amount allocat to it. Your allocation strategy should be driven by.
two factors: the life cycle of
The store and the positioning of the product. What stage is your store in? Your strategy must be adjust according to the life cycle of the store. For example, a store that just open yesterday will be very different from a store that has been in operation for 99 acres database three years. You can learn more about this from the figure below.
Start-up When your store is just starting out
You have only one thing to do: attract as many customers as possible. At this point you can forget about customer retention (sorry, you have no corporate brands should launch customers…). You must use whatever strategies you can to help you increase the number of customers. Get Some Sales At this stage, you have acquir some customers and have made some sporadic sales.
You can start introducing some retention elements
You can start encouraging these customers to come back. Here I suggest you start sending some emails to encourage old customers to buy from you. Stable You are not an e-commerce superstar yet, but you have acquir a certain number of customers and your sales are growing. At this stage, you may want to start running a customer loyalty program and start thinking carefully about your automat (trigger) emails. Well -known When you have a certain tg data level of fame, you will start facing the problem of how to grow.