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In theory, retaining a customer is more cost-effective than acquiring a new one. However, while the art of customer acquisition has been studied by brands for decades, the art of customer retention is a relatively new field of exploration.
At MarTech+ Summit 2024, industry leaders discussed the growing significance of retention marketing within overall marketing strategies. The session featured Arpit Upadhyay, head of D2C and business, The Man Company; Divyesh Tolani, AVP marketing, Blinkit; Edyta Kurek, SVP and head of India and Indonesia, Oriflame and Harminder Ari, regional vice president at Clevertap. Hemanshi Tiwari, anchor and producer, The Economic Times, moderated the discussion.
Today’s consumers are spoiled for choice, and brand loyalty is increasingly strained. As many brands focus on controlling costs and achieving profitability, retention marketing has come into the spotlight. Retention marketing allows brands to enhance customer lifetime value (LTV) by concentrating on their most valuable customers.
Upadhyay observed, “Retention is now a focus for the majority of brands. The budget shift from acquisition to retention has made our strategies more cost-effective.”
A critical aspect of retention strategies is the emphasis on customer experience, particularly in every interaction a customer has with the brand. Tolani noted, “The first experience a customer has with your product or service creates a long-lasting impression. Great brands must not just meet but exceed customer expectations from the start.”
He added, “Living up to the brand promise of 10-minute delivery is what we are fully committed to, not just on the first purchase but on every purchase. This level of consistency fosters trust, loyalty, and is the cornerstone of customer retention.”
Another key pillar of retention is agility. Brands must keep their products and services up to date in line with changing consumer preferences and trends. Kurek shared, “Retention is about meeting customer expectations as they evolve over time. To avoid losing customers, attention must be paid to the product portfolio. It’s not just about discounts and promotions but delivering real value that aligns with customer expectations.”
The conversation underscored the idea that customers who feel appreciated and heard are more likely to remain loyal to a brand. Tolani added, “Customer engagement involves having a dialogue with customers across touchpoints, whether through social media conversations or customer support interactions. Each of these contributes to a holistic brand experience.”
Marketers are increasingly leveraging data and analytics to gain deeper insights into their customers. Every decision is becoming data-driven, enabling brands to better navigate customer expectations.
Ari remarked, “As the brand lifecycle matures, attention to existing customers increases. You get a true sense of where your brand is heading through feedback mechanisms like net promoter score (NPS) and tracking product-wise repeat cohorts.”
By understanding their existing customers more deeply, brands can unlock new growth opportunities. Brand advocates can spread positive word-of-mouth and provide feedback that can serve as valuable insights for new product innovation.
- Published On Oct 23, 2024 at 08:57 PM IST
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