The 6 most effective marketing strategies to retain your customers
Posted: Mon Jan 06, 2025 6:23 am
There's a lot of talk about how to attract new customers , but not so much about the best strategies to retain them. And customer retention is vital to growing any business. Not only because selling to a customer you already have is easier than selling to a new one , but because satisfied customers are also likely to become ambassadors for your brand , recommending your products or services to their family and friends. If you want to know what the 6 most effective marketing strategies are to retain your customers , be sure to read this post.
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The cost of retaining your customers
Retaining your customers and achieving repeat purchases – the more often they buy, the better – is essential for your company to grow. Obviously, retaining customers has a cost – you have to invest in the product, in marketing, in the customer service department, in after-sales service, etc. – but this is much lower hong kong number data than the cost of attracting new customers .
Some data:
Retaining an existing customer costs 5 times less than acquiring a new one.
The probability of selling to an existing customer is between 60% and 70% , while the probability of selling to a new one is between 5% and 20%.
50 % of existing customers are more likely to try new products and spend 31% more than new customers.
Increasing customer retention rate by 5% increases profits by 25% to 95% .
Source (in English): Customer Acquisition Vs. Retention (Infographic) – Sailthru
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An important preliminary step: know your customers
Before we start talking about the most effective strategies to retain your clients, it is essential that you know who they are. It is likely that, following Pareto's Law , 20% of your clients are generating 80% of your turnover. Do you already know who is part of that 20%?
It is worth investing in getting to know your customers better. A technique for segmenting them , which is based precisely on the Pareto principle, is the RFM method , which classifies them based on three variables:
Recency: How long it's been since your last purchase.
Frequency: average number of purchases per time period. (Example: weekly purchases).
Money: value of purchases made by the customer in the period considered.
Depending on the score that each customer obtains in each of these variables – normally scored from 1 to 5 – they are classified into groups: there will be some who spend a lot, but infrequently, others who buy low-value products very often, others with a very long history, but who make high-value purchases, etc.
Note: In this post we focus on product and service companies, not SaaS companies. In the latter case, it is advisable to analyze data on usage – how often do customers log in? Are they active on the platform? – and on knowledge of the tool – which features do they use most often? Are they using the advanced features?, etc.
What are the 6 most effective marketing strategies to retain your customers?
1. Personalize messages and offers
Segmenting your customers based on their purchasing habits helps you design your retention marketing campaigns based on each customer group , depending on whether your goal is to increase the recency, frequency or value of the purchase.
The messages you send to each group – for example, through a weekly newsletter – should be highly targeted, and the offers tailored to achieve your goal. For example, if you want to increase the frequency of purchases, you can offer a 2-for-1 discount. Or if you want to reactivate a customer who has not bought for a while, you can offer them a promotion based on the last products or services they bought, or based on complementary products, since you know that these are the ones that could interest them.
Create sales opportunities with your Holded CRM. Start for free .
The cost of retaining your customers
Retaining your customers and achieving repeat purchases – the more often they buy, the better – is essential for your company to grow. Obviously, retaining customers has a cost – you have to invest in the product, in marketing, in the customer service department, in after-sales service, etc. – but this is much lower hong kong number data than the cost of attracting new customers .
Some data:
Retaining an existing customer costs 5 times less than acquiring a new one.
The probability of selling to an existing customer is between 60% and 70% , while the probability of selling to a new one is between 5% and 20%.
50 % of existing customers are more likely to try new products and spend 31% more than new customers.
Increasing customer retention rate by 5% increases profits by 25% to 95% .
Source (in English): Customer Acquisition Vs. Retention (Infographic) – Sailthru
More than 80,000 companies already use Holded
Manage opportunities with a personal touch and boost your sales.
Try it for free
An important preliminary step: know your customers
Before we start talking about the most effective strategies to retain your clients, it is essential that you know who they are. It is likely that, following Pareto's Law , 20% of your clients are generating 80% of your turnover. Do you already know who is part of that 20%?
It is worth investing in getting to know your customers better. A technique for segmenting them , which is based precisely on the Pareto principle, is the RFM method , which classifies them based on three variables:
Recency: How long it's been since your last purchase.
Frequency: average number of purchases per time period. (Example: weekly purchases).
Money: value of purchases made by the customer in the period considered.
Depending on the score that each customer obtains in each of these variables – normally scored from 1 to 5 – they are classified into groups: there will be some who spend a lot, but infrequently, others who buy low-value products very often, others with a very long history, but who make high-value purchases, etc.
Note: In this post we focus on product and service companies, not SaaS companies. In the latter case, it is advisable to analyze data on usage – how often do customers log in? Are they active on the platform? – and on knowledge of the tool – which features do they use most often? Are they using the advanced features?, etc.
What are the 6 most effective marketing strategies to retain your customers?
1. Personalize messages and offers
Segmenting your customers based on their purchasing habits helps you design your retention marketing campaigns based on each customer group , depending on whether your goal is to increase the recency, frequency or value of the purchase.
The messages you send to each group – for example, through a weekly newsletter – should be highly targeted, and the offers tailored to achieve your goal. For example, if you want to increase the frequency of purchases, you can offer a 2-for-1 discount. Or if you want to reactivate a customer who has not bought for a while, you can offer them a promotion based on the last products or services they bought, or based on complementary products, since you know that these are the ones that could interest them.