Why Nurturing Your Existing Users Is More Important Than Acquisition
By Ellen Flynn
jill111 / Pixabay
If you’ve been in the mobile space a few years, then you’ll know that acquisition was once the most important metric to follow. Mobile marketers focused on getting as many people to the app as possible, touting the number of users as success for the brand. But the fickleness of the average mobile user means that the net effect of acquisition doesn’t necessarily add up to much, with 21% of new users using the app only once, much less converting and becoming the type of customers who deliver real ROI.
The obvious take away: marketers need to focus less on acquiring new users, and more on engaging and retaining their existing ones. It turns out that those lessons from Marketing 101 were right: it costs five times more to acquire a new customer than it does to retain an existing customer, so you’re better off looking at the latter.
But brands are slow on the uptake. Currently, 88% of marketing budgets are spent on acquisition, leaving just a smidge for all those marketing activities that are dedicated to reducing churn and driving retention. This does not lead to growth – in fact it can deliver the exact opposite. When 80% of customers churn within a 90 day period, you can be acquiring users in sizable numbers but doing nothing to grow the business in a meaningful way.
In this piece I’m going to take a deeper look at why brands need to nurture their existing customers with engagement, retention and conversion strategies, rather than ‘buy growth’ from acquiring new customers, and how those engagement and retention strategies will work.
Why Brands Need To Beat Nature With Nurture
First things first, marketers need to address this massive 80% dropout rate and instead convert those users to become ROI generating customers. Acquiring new users won’t help a bit here, so the obvious alternative is to engage the users you have so they don’t delete (or just stop using) the app.
To do this, marketers need to develop and use engagement strategies across a multitude of channels, and ideally use them according to each individual user’s preferences. But this is easier said than done. We know from previous research by Twilio that 84% of marketing messages are deemed irrelevant by customers, with a further 71% admitting to being irritated by messages.
Whilst more channels mean more flexibility for the marketer, they also offer more opportunities to spam. In order to stay relevant in real-time, multi-channel communication, marketers need to focus on dynamic campaigns that avoid hardwired, predictable journeys. These dynamic campaigns should anticipate relevant moments along a customer’s unpredictable journey, using data which tracks the customer lifecycle, and step in to drive engagement, conversion, and retention. The right data will tell you who your customers are, when they would like to receive a particular message, what form that message should take, and which channel to deliver the message in, enabling marketers to send messages in near perfect conditions for that individual.
The result of this ‘perfect …read more
Read more here:: B2CMarketingInsider