How Retention Marketing Can Help You Reduce Your Overall Bounce Rate

Originally published on WebEngage.

A 5% increase in customer retention is capable enough to trigger a 25% increase in profits, says Bain & Company.

The stat itself says how impactful retention marketing can be for your business.

Over the years, companies have been able to acquire users but not retain them. This has necessitated a move towards retention marketing that would keep the existing users engaged and drive more transactions through these users.

What is the importance of retention marketing?

The time has gone when you used to run multiple campaigns from awareness to sales and forget the newly acquired customers.

What you might have forgotten is, focusing on retaining your existing customers can fetch you the desired results. They can save time and energy by skipping several stages of the sales funnel.

It’s necessary to identify the stage when there is a need to implement a data-driven “retention marketing program”.

The need depends upon two points primarily:

  1. The saturation of an acquisition marketing program

You can find out the perfect mix of acquisition — retention requirement based upon factors like nature of product/service, type of represented industry, rules & regulations etc. You can start your retention marketing efforts by further finding answers to the below questions:

  • What to do with ever-growing bounce rate?
  • What is the solution to not achieving the sales target?

2. Break-even point for the retention marketing program

With regards to break-even point, you can start retention marketing after having enough quality leads/sales from the sales funnel which match with specific criteria of further segmentation possibility, chances of repeat purchase & probability of reduced bounce rate.

Here are some surefire retention marketing strategies to slash your churn rate:

  1. Leveraging messaging platforms for driving user engagement
  2. Personalizing communication
  3. Redefining value measurement methodology
  4. Offering exclusive deals & lightning discount programs
  5. Implementing retention email marketing campaigns

1. Leveraging messaging platforms for driving user engagement

Implementing omnichannel messaging strategy means that leveraging every communication channel with a different objective to boost engagement and in turn, influence retention.

Source: HDFC Bank

For example, users prefer to get simple answers from a chatbot while like to explore emails for detailed ones. Similarly, brands too can match users need with a communication platform to avoid scattered messaging. This way, you can integrate all these channels to offer a seamless omnichannel experience.

2. Personalizing communication

What better brand than Netflix to understand personalization. The platform analyses user behaviour and interests to offer show recommendations.

Source: Squarespace

These personalized recommendations keep users engaged and in their terminology — binge-watching every time.

3. Redefining value measurement methodology

Similarly, one should adopt this model for measuring ROI & customer lifetime value (CLV). You can identify profit numbers from every user in the timeframe until he engaged with the product. This methodology can help you to predict potential revenue from every customer and to take decisions on offering further discounts on the product.

In other words, shifting the value measurement method from acquisition to retention can help you identify exact margins.

4. Offering exclusive deals & lightning discount programs

There are diverse ways to offer exclusive deals & implement discount programs.

1. Last-minute deals: To inject urgency and sudden action, e-commerce stores implement this program to get more return buyers.

Source: Expedia

Expedia offers last minute deals on most popular flights with a customized landing page.

2. Subscription Deals: These types of deals are more prevalent in subscription-based businesses, e-commerce stores & OTT platforms where services are rendered in exchange for a fixed fee.

Source: Amazon

Amazon Prime is the classic example of subscription deals where in exchange of a fixed fee, users can enjoy lightning fast delivery, one-day & free shipping on eligible products, early access to exclusive deals, unlimited streaming etc.

3. Exchange offers: This is the most used program offered by online stores to deliver additional value to their users.

Source: Mi

Xiaomi offers exchange deals where users can get a new smartphone in exchange for a used and old one.

4. Launch offers: Companies use such offers when they launch a new product or a variant of an existing product. These campaigns play a crucial role in raising brand awareness and creating word of mouth.

Source: Amazon

Amazon created an “Exclusive” section with a customized landing page for launches of new tech gadgets. As seen in the image above, Tenor (Amazon-owned brand) offers an exclusive discount with a clear (Call To Action) button of “Shop now”.

5. Implementing retention email marketing campaigns

  • Users who haven’t logged in from past X days
  • Users who completed the signup but never installed the app
  • Users who abandoned the cart
  • Users with inactive status for a longer duration

These are just a representation of factors to define user segments in the design phase. Based on segments, you can start building campaigns with a definite sequence for follow-ups.

Here are some examples of email templates with rich visuals for a better idea.

Content Marketer @ WebEngage. Logophile. Creative. Child at heart. Free spirit. Founder @ Smallogs.