Problem
retaining your customers?
A
customer value-based marketing
plan has to be profitable.To
retain and increase the value
of customers,you have to engage
them by communicating on a
regular basis. If you
don't, customers will be less
loyal and either abandons you
for a competitor who communicates
with them, or will spend less
with you over time.
Marketing
promotions are essential to
any kind of customer retention
effort; promotions drive the
sales activity of customers.
Customer
retention results when you make,
and the customer accepts, new
offers over time. This
is an ongoing renewal of the
relationship with a customer.
Active
customers are happy (retained)
customers; and they like to "win". They
like to feel they are in control
and smart about choices they
make, and they like to feel
good about their behavior. Marketers
take advantage of this by offering
promotions of various kinds
to get consumers to engage in
a behavior and feel good about
doing it.
These
promotions range from discounts
and sweepstakes to loyalty programs
and higher concept approaches
such as thank-you notes and
birthday cards. Promotions
encourage behavior. If
you want your customers to do
something, you have to do something
for them, and if it’s
something that makes them feel
good (like they are winning
the consumer game) then they’re
more likely to do it.
Retaining
customers means keeping them
active with you. If you
don't, they will slip away and
eventually no longer be customers. Promotions
encourage this interaction of
customers with your company,
even if you are just sending
out a newsletter or birthday
card.
The
truth is, almost
all customers will leave you
eventually. The trick is
to keep them active as long as
possible, and to
make money doing it.
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