Drive Top Line Growth by Selling to Your Existing Customers
I’m sure you are familiar with Pareto’s 80/20 rule that nearly eight percent of your sales come from existing customers compared to 20 percent coming from new customers. Also, it is a well-known fact that it is much more expensive to acquire new customers versus getting your current customers to make repeated purchases.
While many established businesses are hell bent in spending an exorbitant amount of resources to drive new customers, many are overlooking the easiest way to drive more revenue with less expensive remarketing initiatives targeted to your existing customer base.
What is remarketing for customer retention?
Remarketing for customer retention is a way to reconnect with those that have purchased from you in the past. The goal is to keep those customers for life by getting them to buy your products repeatedly, thus driving up each customer’s lifetime value which helps improve a company’s top line growth.
Adapting remarketing activities for customer retention
All businesses benefit from remarketing to their existing customer base. This applies to companies that sell:
- Low priced products purchased periodically
- High priced products purchased periodically
- Low priced products purchased regularly
- High priced products purchased regularly
Regardless of where you company falls, remarketing to your existing customer is a sure fire way to improve sales and revenue. Now, with the use of Artificial Intelligence (AI), the task of remarketing to your existing customer base has never been easier.
AI and the metrics used for remarketing for customer retention
Metrics are important and the way they are used will go a long way in driving repeat buyers. Three basic measuring sticks that are frequently used to analyze customer value are:
- Recency – how recently did the customer purchase
- Frequency – how often did the customer purchase
- Monetary – how much did the customer spend
In the past, it wasn’t cost effective to calculate RFM values of each and every one of your past customers unless you were willing to hire a data scientist in the six figure range. This put many small to mid-size companies at a disadvantage. Now, with the advent of AI, this can be done cost effectively in a few seconds:
Once RFM calculations have been conducted for each and every one of your past customers, true remarketing for customer retention activities can now begin.
Five AI-based, data driven remarketing activities to boost customer retention
- Send relevant emails : Messaging needs to be precise, hyper personalized to what the customer is predicted to purchase.
- Reduce shopping cart abandonment rates : Use a multi-step approach that shows upsell and cross sell products
- Text messaging : Text messaging has up to a 90% open rate and should be used in conjunction with email marketing
- Triggered messaging : Enable automated messages, whether by email or text, to remind customers to reorder products
- Social media : Provides another viable channel to reach out to your existing customer base.
Keeping your customers are the keys to long term growth
Bringing new customers to your front door can be difficult and expensive. Once you have gotten over the hurdle of acquiring your first slew of customers, staying in front of them is the key to growing your business. The relationships you develop as well as the experiences you provide will go a long way in continuously driving revenue for your business and having customers for life.