Advertising investment grows year after year, however the amount dedicated to loyalty represents a tiny part of the $ 666,000 million that will be reached in 2020 according to “Adspend Forecasts”. Most of this budget is to attract, acquire and convert new leads. Did you know that a 5% increase in customer retention can lead to an increase in profits of between 25% and 95%?
There are many studies that, like the research carried out by Frederick Reichheld of Bain & Company, point out the benefits of retaining already acquired customers and increasing their Customer Lifetime Value. Forrester, for example, refers that acquiring new customer can cost 5 times more than retaining an existing customer.
So you have already acquired them, why not build loyalty?
Maintaining the trust of your customers should not be so complicated, but how knows, maybe next time they will choose another brand even if you meet their expectations. Nevertheless, according to Marketing Metrics, the probability of companies selling to an existing customer is 60-70%. While selling to a new customer is 5-20%.
With these figures in mind it makes sense to focus your efforts and investment on retaining and building loyalty through Lead Nurturing strategies to those customers who are spending their money on your goods and services, over and over again.
How to build loyalty with Lead Management?
Offer the best service to each lead, before it even becomes a customer and guide him through the most appropriate channels depending on the micro-moment in which he is. If you develop a Lead to Revenue Management strategy you will be able to obtain the best results with:
1. Tracking end-to-end: identifying who he is, how it came to you (what campaigns, what keyword, what landing, what acquisition element) and even his interests, you can contextualize his steps in the funnel.
2. Scoring: thanks to the analysis of the collected data you will be able to qualify each lead (conversion probability, ARPU, CAC …) and to offer the most relevant omnichannel adquisition elements (Ring Pool, Call Me Back, Chat, Chatbot, Callbot, Whastapp. ..) which will reduce his effort in the process of making a decision.
3. Conversion: users want to feel unique and have information with which you can contextualize the sale or after-sales is a point in your favor. 50% of customers complain about having to repeat information to get an issue resolved or having to switch from one service channel to another (for instance, needing to call after trying unsuccessfully to solve a problem through the website).
4. Nurturing: converted or not, you must work on custom interactions with your leads based on the analysis of the information collected because that will sow future sales and reinforce your brand. 80% of your company’s future revenue will come from just 20% of your existing customers according to Gartner Group.
5. Attribution and reporting: analyze your results together (online and offline) and keep in mind that reducing customer churn by 5% can increase profits 25-125%, according to the industry, and that 6 out of every 10 customer defections can be modified if discovered in advance and we work our relationship with them.
6. Automation: studies indicate that loyalty efforts are less than expected, however, one thing you can do right now is to optimize your budget updating automatically your audiences with your online and offline conversions, doing the proper retargeting or activating automated bidding strategies based on offline objectives.
Planning and developing a complete Lead to Revenue Management strategy will help you improving the results of your Marketing and Sales iniciatives, optimizing your sales funnel and your dedicated resources, both in acquiring leads and in customer loyalty.