Objectives for onboarding Retention and Expansion
It costs up to 10 times more to acquire a new customer than retaining an existing one. It is in your best interest to find out which marketing activities will help to retain and grow the value of your existing customers. In this post, you will know more about the concepts of onboarding, Retention and Expansion.
At the end of this post, you will be able to explain the concepts of customer onboarding and retention. Explain the expansion according to using recency frequency, monetary value, the RFM approach and describe customer lifetime value or CLV. For short, growing the value of your existing customers suppose you have efficient ways of reaching them.
Customer Onboarding and Retention
How To Reach Your Current Customers
A question marketers might ask is, why should I spend my money acquisition retention or expansion? There’s really no definite answer to this question, but most sources agrees that it costs four to 10 times more sometimes 30 times more to acquire a new customer than it does to keep an existing one. The top marketing strategies for onboarding, retention and expansions are the following.
For customer onboarding, the process put in place immediately after someone confirm a purchase or service description, Customer Experience Management, designing and reacting to customer interactions to meet and exceed customer expectation.
The Customer service and support the means put in place to efficiently and those post sales services doing social CRM. Enabling personalized interactions through social media, user campaigns, and of course, the now classic newsletter which keeps your customer informed about the latest products or service news.
The customer onboarding is what happens once you acquire a new customer. They are the very first step which sets the tone for the whole relationship. If the experience is confusing or overwhelming, this puts up barriers to achieving success.
So you want to set expectation. You want to break things down in collect info sparingly and when needed. You want to call attention to important elements in these may be something to discover.
Show up the product using videos and animation. But make it skippable you want to build a relationship, because it’s not only about the product, it’s setting up the tone for the entire experience. Onboarding my involves, for example, an automated email campaign that entice the user to gradually learn more about your product or service. Once they are on board. There are some tactics that will be more effective at retaining those customers.
It refers to the actions and activities to reduce the number of customer defection . In a survey, 45% of companies said they had a greater focus on customer acquisition, and only 18% of them said they focused on customer retention.
So while many digital marketers focus on acquiring new customers to actually investigate the reason for churn of their existing clients, the data often comes from outside of their web analytics platform. You should pay close attention to customer feedback polls and wherever possible do a post exit survey. In a way, working on retention will force you to think holistically about the customer experience.
Impact Of Customer Retention
So what is the impact of customer retention are research by the Frederick Reichheld of Bain and Company cited by HBr shows increasing customer retention by only 5% could have an impact on profit between 25 and 95%.
So customer expansion we pertains to the increase in the share of lots of existing customers by offering complimentary products and services. Given those numbers, why aren’t marketers more focused on Retention and Expansion?
When it comes to onboarding, Retention and Expansion. The key takeaways are remember the seeds of charms are planted early. Nurtured a relationship with your current customers through relevant marketing tactics as well as retention and self service features.