By Guest Author
The cost of acquiring a new customer can range from five to seven times the expense of keeping an existing one. However, an estimated 44% of brands focus on acquisition rather than retention. Acquisition strategies often include investment in expensive advertising, marketing materials, events, and social and email marketing.
Perhaps one of the reasons retailers focus on acquisition is that it seems like an effective indication of growth and provides a quick-win for a commission-based in-store staff. In contrast, retention requires ongoing relationship nurturing and a longer-term view of customer lifetime value.
In reality, successful brands need to establish both effective acquisition and retention strategies. Loyalty is the answer. Brands investing in customer loyalty can help drive engagement and retention and attract new customers simply by designing a program that rewards existing customers and appeals to new ones.
Let’s take a look at some of the tactics brands can use when strategizing their loyalty initiatives.
1. Feature Relevant Content
Encourage your customers to learn more about your brand by incentivizing them to watch videos or read blog posts. The more useful or insightful the content is, the greater brand affinity it will build. This strategy can help promote new product offerings or help position your brand as an expert. It can even serve to educate your customers during the buying process. For example, beauty consumers are turning to user-generated content before they make buying decisions. Beauty brands should encourage and leverage content like video tutorials, selfies, and online reviews for a competitive advantage. tarte rewards members of its “tarte