Inbound Marketing is a valuable strategy businesses can use to obtain new customers. Inbound Marketing is defined as Marketing based on getting found by customers. It’s customer-centric. With Inbound Marketing, businesses create customer-centric content based on customers needs. Content could take the form of blogs, videos & SEO.
image via hubspot.com/inbound-marketing
Why Inbound Marketing should not take a back seat to Current Customers
Recently, I read an article that advocated that Inbound Marketing should take a backseat to your current customers. While it is less expensive to keep, nurture and up-sell/cross-sell current customers, businesses need to always be on the hunt for new customers. Despite the fact that it costs 5 times the amount to acquire a new customer verses keeping an existing one, it is an expense that businesses need to take on.
This is because businesses will always lose a portion of their customer base for a variety of reasons as seen in this graph.
image via http://www.superoffice.de/blog-de/kundenpflege/
According to Marketing at Work, the average business loses about 10 to 25 percent of its customer base every year.
What happens if businesses start Ignoring customer acquisition?
- If a business loses 25 percent of its customer base it will have no customers after 4 years
- At a 10 percent loss rate it will have no customers after 10 years
Through great service, word of mouth, & customer referrals; businesses may be able to extend their life. This then becomes an issue of how fast they can replace the lost customers. Relying on these methods alone puts undo pressure on customers and they may get turned off by being constantly asked to refer people. This may result in more customer turnover.
As we have seen, focusing only on customer acquisition and customer retention is a losing game.
Done right, Inbound Marketing should be combined with Content Marketing because current customers still need to be nurtured after the sale. Businesses can only expect referrals and repeat business if customers:
- Feel valued & receive great service
Businesses can apply the principles of Inbound Marketing for customer retention in the following ways:
1. Create Blog content Specifically for customers
- Supply customers with exclusive access to blog content with useful tips and tricks for customers to get the most out their purchase.
- Offer customers discounts
- Make reordering easy
- Make customers feel like insiders.
2. Get customers to opt into user specific content via email
- Ask customers for this commitment right when they sign up and commit
- Make sure to create valuable content as customer attention is a gift
- Remember that the customer defines value
3. Create Communities such as exclusive user groups
- Groups can be created on Social Networks such as Facebook, LinkedIn and specialized forums on a company site.
- Use these groups to share content and invitations to customer only events.
4. Create free industry trends sites that don’t sell anything
- This is a great way businesses can position themselves as a resource
- These sites can be shared with both current customers and prospects.
- Adobe does a great job with their CMO.com site which provides content and insights to CMO’s and marketing professions.
How have you used Inbound Marketing for customer retention? Share and comment.
About the Author
Dan is passionate about using Marketing to help businesses drive sales. He has worked on various marketing assignments that include a Start Up, Political Campaign & a Digital Marketing Conference.
Prior to Teaching, Dan served customers as an Outside Sales & Marketing Representative in the Dental industry. In this role, he taught and trained Dentists on the company’s products and services using a consultative selling approach. He also supported the company’s marketing efforts at industry trade shows & in the field through lead generation of Digital Technology along with large Dental Equipment.
He writes and publish a business blog on the topics of Sales, Marketing & Social Media entitled Sales, Marketing & Social Media Today.
Dan is seeking a full time marketing role in New York City. He is interested in roles in Direct, Digital, Content & Social Media Marketing. If your company is hiring for roles in these areas, contact him directly via a free LinkedIn Message or email him at Dan@DanGalante.com to set up interviews.