It costs approximately five times as much to acquire a new customer than it does to retain one. While business growth depends on attracting new consumers to your product or company, retention still remains a key part of business. Customer acquisition, therefore, typically makes up the lion’s share of a marketing budget. Despite this, retaining the ones you do have should be of equal importance.
When it comes to keeping your existing clients or customers happy, there are a number of ways to do so. From data analysis to subscription updates and emails, there are a variety of ways to keep engaged. Given the average consumer’s propensity to communicate via text message, more and more companies are turning to the established method of business SMS, as sites like SMS Comparison shows.
So why should a business turn to a marketing tool with over two decades of existence?
Customer Retention Efforts Pay Off
According to a study conducted by Harvard Business School, increasing customer retention efforts by 5% can drive profits up between 25 to 95 per cent. This proves that keeping customers on your books is essential for maximising profits. Sounds easy, but what does this entail?
Businesses must use every resource available to them, including digital marketing, social media, emails and business SMS. Everything from interesting updates to competitions and rewards are just a few of the ways you stay engaged with your customer, and more importantly, keep fresh in their minds.
For Customer Services
SMS is a perfect way to maintain a relationship between the customer and the company. More and more businesses are rolling out 24/7 support, but it is not always feasible to pay staff around the clock. Keeping this connection constant and instant as possible is vital to keeping happy customers. Providing you find a way to do so that works for both your customer and your business.
Why would text messaging differ from any other way to contact customer services? Given the fact that text messaging is mobile and instantaneous, it is more beneficial than many other ways of communicating. Plus, it also very convenient, which cannot be denied.
Targeted Marketing
Companies in Europe will be in the process of adapting to the recent change in laws on account of GDPR. However, providing customers opt-in to receiving marketing content from you, one of the best methods for reaching your customer base is by SMS.
It is estimated that approximately 90% of customers will read a text message almost instantly after receiving it. This gives unrivalled access to your targeted customer base which emails, phone calls, and social media updates cannot match. Factor in things such as geofencing and you can see just how important text messaging can be when communicating with consumers.
Retention Pays Off
Never forget your existing customer base. Ignoring the importance of existing customers in order to throw all of your resources into acquiring new faces through the door is simply bad for business.