No matter what business you're in, you probably want new customers to become regulars. If not, here's some statistics: According to research from the Annex Cloud marketing platform, 65% of companies' profits come from regular customers, and they spend an average of 33% more than new ones.
According to Forbes , the chances of selling a product to a new customer range from 5% to 20%, while for existing customers the chance increases to 60% or 70%.
In this article, we will find out how to retain customers using SMS mailings, tell you the basics of retention marketing, list the basic metrics for assessing retention, and analyze the tools for creating a working mailing.
How to evaluate retention
To calculate the effectiveness of long-term relationships with a taiwan consumer email list client, there is an indicator called Retention Rate (RR). The higher it is, the more people are ready to stay with you for a long time, make regular purchases and recommend you to friends.
Retention Rate is closely related to other indicators. One of them is Lifetime Value (LTV): an indicator of the amount of profit that a client has brought in over the entire period of interaction with the service. If RR simply records how many clients a company retains, then LTV suggests which customers should be retained first.
Companies strive to increase the Retention Rate, which significantly increases profits. According to statistics from the marketing software developer HubSpot, increasing the RR by 5% allows you to increase income from 25% to 95%.