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The retention marketing edge: 6 ways to boost loyalty and beat churn

5 minute read

Did you know that companies with strong customer retention strategies can see a profit increase of 25% to 95% by improving retention rates by just 5%? This striking statistic showcases the real power that retention marketing has in modern marketing strategies. 

Retention marketing is all about keeping your existing customers engaged and loyal, rather than solely focusing on the chase for new ones. It’s a practical approach that boosts lifetime value and reduces churn, especially as acquisition costs climb and customer expectations shift. In this article, we’ll help break down the importance of retention marketing, offering clear strategies to enhance customer loyalty and help your business grow steadily. We’ll also tackle the common challenges businesses face in retaining customers and share smart ways to sidestep them, giving you the know-how to turn loyalty into a winning edge.

How to build an effective retention marketing strategy

1. Understanding your customers

The foundation of any retention strategy is knowing who your customers are and what makes them tick. Customer segmentation and analytics are key to decoding behaviors, preferences, and pain points. By grouping customers based on factors like purchase history or demographics, you can tailor your approach to fit their needs. Tools like surveys, feedback forms, and CRM systems (think Salesforce or HubSpot) make gathering this data a breeze, and using them together alongside data management systems can give you the edge you need to create actionable insights and keep customers coming back.

2. Personalisation

Nothing says “we get you” like a personalised touch. Tailored marketing messages—whether through emails crafted just for them or spot-on product recommendations—boost customer experience and keep them hooked. For example, sending a “We Missed You” email with a tailored incentive after a customer hasn’t shopped in a while or a curated list of items based on past purchases can work wonders. Personalisation shows customers they’re more than just a number, deepening their connection to your brand.

3. Customer engagement

Staying top-of-mind means keeping the conversation alive across all channels like email, social media, or SMS. After all, we all know that regular, meaningful engagement builds relationships that last.

According to Attentive’s Consumer Trends Report 2023, 91% of consumers globally have already signed up for an SMS program or are interested in doing so.

This shows just how eager people are for this direct line of connection. It’s time to build retention strategies around sharing content which clicks—think behind-the-scenes stories, helpful tips, or polls to spark interaction. The trick? Keep it relevant and fun, so customers look forward to hearing from you instead of just hitting unsubscribe.

4. Loyalty programs

Who doesn’t love a reward? Loyalty programs incentivise repeat purchases by making customers feel valued. Take Starbucks Rewards, with its points-for-perks system, or Sephora’s Beauty Insider program, offering exclusive goodies. The best programs are simple, trackable, and packed with benefits—like discounts, freebies, or VIP access—that keep customers excited to stick around.

5. Customer feedback and improvement

Listening to your customers isn’t just polite—it’s profitable. Collecting feedback through Net Promoter Score (NPS) surveys, product reviews, or quick post-purchase polls shows you care and helps you fine-tune your offerings. Acting on that input—whether it’s fixing a glitch or adding a requested feature—turns casual buyers into loyal fans, proving their voice matters.

6. Retargeting and re-marketing

Sometimes customers drift away, but retargeting can reel them back in. Using ads or email reminders, you can nudge past visitors to finish that abandoned cart or revisit your site. Keep it effective with clear calls-to-action—like “Come back for 10% off!”—and target the right audience based on their previous interactions. It’s a gentle reminder that says, “Hey, we’ve still got what you love.”

Creating an effective marketing retention plan

Building a stellar marketing retention plan starts with setting clear goals and KPIs—like slashing churn rates or boosting customer lifetime value (CLV)—to keep your focus sharp. Next, pinpoint key customer touchpoints, from onboarding to post-purchase follow-ups, to map out where loyalty can shine. Craft a communication strategy that mixes channels like email, SMS, and social media, balancing frequency to stay engaging without overwhelming. And finally, it's equally important to continuously monitor performance metrics and tweak your plan accordingly—because a retention strategy that adapts is one that wins.

Real-life examples of successful retention marketing

Some brands have mastered retention marketing with strategies that keep customers coming back. Take Telstra’s Telstra Plus, for instance—this loyalty program lets customers earn points on every bill payment, redeemable for discounts on devices or accessories, contributing to Telstra maintaining a customer retention rate among the highest in the industry, with over 70% of customers staying loyal year-over-year. Then there’s Starbucks Rewards, which hooks customers with points for every purchase, free birthday treats, and mobile order perks, driving a 16% increase in member spending annually. These tactics—centered on value, personalisation, and rewards—prove that retention done right can spark standout loyalty and deliver major business wins.

Key challenges in retention marketing & tips to overcome them

Retention marketing isn’t without its hurdles. Shifting customer preferences can throw a curveball, while fierce competition means you’re always battling to stand out. To tackle these, stay ahead with regular customer satisfaction surveys—such as quick polls or NPS checks—to keep your finger on the pulse. Staying agile is key too; test new tactics like dynamic content or exclusive drops to keep things fresh. By listening hard and adapting fast, you can turn challenges into opportunities to deepen those customer connections.

Start planning your retention marketing strategy today

Retention marketing is your ace in the hole for forging unbreakable customer bonds, slashing churn, and increasing lifetime value—without breaking the bank. From getting to know your customers inside out to launching exciting new loyalty programs and clever retargeting plays, the tactics we’ve laid out can reshape how you keep your audience close. Don’t let this slip by—jump in and start boosting your retention strategy today. 

And if you want a dynamic tool to bring it all together, explore Pendula’s workflow engagement platform to help you whip up a retention plan that locks in success and keeps your customers engaged. Book a conversation with our retention experts today.

Related resources:

Kristina Pavleski

Web & Marketing Coordinator
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