If you’ve been feeling the pinch of rising costs for acquiring leads, you’re not alone. But that’s ok…
Wait what?!
Well, look… It’s 2023… The market is saturated. People are skeptical… And going all-in on lead acquisition isn’t sustainable for any business.
This is why we’re diving deep into the underleveraged power of customer retention.
Trust me, nurturing those existing customers is where the real profit happens. So fasten your seat belts, put down your coffee, and get ready to take your business to new heights.
Why Focusing on Lead Acquisition Isn’t Sustainable
Quality Beats Quantity:
Picture this: a massive list of leads that don’t really care about what you’re offering.
Yet, SO MANY marketers (and businesses) do just that: attract unqualified leads for the sake of getting leads. (Read: wasted marketing budget and stress level high as burj Khalifa…
When talking leads, it’s quality over quantity.
You need a steady stream of leads or else your email list will lose purchasing power…
So focus on attracting quality leads that resonate with your brand.
You want leads who are genuinely interested and more likely to become loyal customers.
The Suppressed Contacts Mystery:
I recently talked to a founder who has 200k suppressed contacts, sitting on his list. He paid good money to get new leads yet most of the new leads turned out to be bargain seekers not interested in his offer. So now what?
As your email list grows, you’ll encounter dreaded suppressed contacts. These contacts can affect your email deliverability and engagement rates.
And the more unqualified leads you attract, the more suppressed contacts you’ll have. It’s a vicious circle and another point for getting quality leads.
The Costly Conversion Conundrum:
Did you know that it costs 5X more to convert a lead into a paying customer than to sell to an existing customer?
Existing customers are already familiar with your brand and trust you.
So, why not nurture those relationships and keep them coming back for more? It’s a smarter use of your resources.
Improving Retention Pays the Bills
The First Purchase Fallout:
Most brands see the biggest customer drop-off after their first purchase. This drop-off is the most expensive way to run a business (especially because they’re using your welcome discount).
You can fix your retention by investing in post-purchase strategies that keep the customer’s love alive.
Think personalized follow-ups, exclusive deals, and prompt customer service. You can get my “From One-Time Buyers to loyal customers” post-purchase flow by clicking here.
Reducing Customer Churn:
What does your promo/content ratio look like?
What about your segmentation?
Your conditional splits?
Keep delivering value through content, VIP perks, and personalized recommendations.
And don’t be afraid to ask for feedback! Your reader love to share what’s on their mind. Asking their opinion is how they feel heard and included.
Retention Done Right
Triggered Emails
Triggered emails send personalized emails based on customer actions:
- Welcome emails
- Abandoned cart reminders,
- Browse Abandon emails
- Product recommendations…
Triggered emails are like arrows hitting the bullseye of customer engagement. They build loyalty, engagement and boost conversions because they catch a customer where they’re at.
Promo vs Content Balance
We all love a good promo, but bombarding customers with constant sales pitches?
You can expect your:
- unsubscribe rate to shoot up,
- spam complaint rates to go up,
- deliverability drops and
- a red flag from your Email Service Provider.
None of which you want to deal with.
Strike a balance between valuable content, heartwarming customer stories and promos.
Aim for 60:40 in the content’s favor. This has proven to be a winning combo for my clients… making their customers swoon and engaged.
Sustainable business growth lies in customer retention, not just lead acquisition.
Quality leads, smarter budget spending, and customer nurture are your keys to success.
Put in place strategies that’ll make your brand go from the first purchase drop-off to the go-to trusted source of information and products.
y’all coming for supper or what?
Katja Mokotar
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Katja Mokotar is a professional email Copywriter. She creates email strategies for CPG eCommerce that generate new & repeat customers… and can often be scaled to $1M and beyond