Customer Retention: Paano Maging Mukhang Pera with a Heart

Were you disappointed when your family and friends weren't supportive of your business? Were you surprised when strangers trusted you instead?

How do you make them (strangers-turned-customers) stay, come back for more, and also do your retention marketing for you?

Do you want to pass down your business to your future children and grandchildren?

Most business owners need to learn what retention marketing is. Some would say, "Why bother when I don’t have a single customer to keep?" or "Who is retention marketing for when you don’t have customers or a list yet?". It's understandable if you haven't started yet since it's not too late and there are ways to catch up.

But did you know that the best people to sell to are those who already bought from you? Find out how to do retention marketing for free and without pain, so you can earn more and save more in your business.

What you’ll learn in this episode?

• Discover how having an end goal can help lay the foundation of your business
• Find out why there should be a balance between acquisition and retention marketing
• Know the ultimate sign you need to work on your retention marketing

NOTES: If you haven’t checked out the previous episodes, listen to Episodes 5 and 6 to learn about Acquisition and Conversion. Also, no matter how amazing your retention marketing is, it will not save a dying product or industry.

Three (3) goals of retention marketing to ensure your customers buy from you again

1. Increase customer return rates by putting previous customers from years ago back in the buying cycle

2. Decrease churn rates by giving them another reason to do business with you again

Churn rate, also known as attrition rate or customer churn, is the rate at which customers stop doing business with an entity

3. Increase purchase frequency because the more often they order from you, the more you earn from them

Examples:

Consumables - Coffee shops

Non-consumables - Refrigerators by adding complementary products like accessories

Four (4) ways to keep the emotional connection after making the sale using retention marketing

1. Start early

• Do it either before your first customer OR ASAP
• Do it at the same time as acquisition, but invest in retention marketing using time and free resources instead of money
• You’ll lose whatever you’ve gained in the first two years of your business because potential recurring sales aren't coming in
• You’ll miss out on two years’ worth of relationship-building with all of them
• You’ll need their help to continue your business when things change

Example: Museums during the pandemic

2. Set expectations

• Onboard your students properly by sending them welcome or thank-you emails with their login details, what’s next, and tips on how to maximize the course or program
• Onboard e-commerce customers by sending them a notification about their order details, payment method, and delivery date
• Ensure fantastic customer experience and product satisfaction even before they start using the product
• Prevent them from turning into “Karens” who ask for updates all the time or “Mariteses” who spread the news about their horrible experience with you
• Dissatisfied customers hurt acquisition too, such as bad ratings and reviews, even if the product is good
•  Go above and beyond sales and serve them instead

Example: Freelancers who want to retain clients, ask for referrals, or upsell their skills but perform sloppily 

• If they have a good experience, they’d buy again without thinking twice because not only did they like the product, but they also loved their experience with you
• Send them proper instructions on how to use your product, so they experience the benefits and will be able to say, “It’s working”

3. Communicate regularly

• Treat it as a relationship between you the seller/the provider of the service and the customer
• Tend to this relationship otherwise it will wither and die
• It’s best to do it once a week. If that’s not possible, do it at least once a month 
• Be the top of mind that they’ve bought from you and they know who you are and who you’re about
• Build the relationship by giving them updates about your business

4. Stay on your customers' radar using either free or paid channel

• Justify getting their emails through incentivization (discounts or new content)
• Stand out among spams and scams using SMS
• VIP Communities using Facebook Groups to drop exclusive offers and content to existing customers

Key Takeaways

“Ang sumuporta sa’tin mga strangers. At ‘yung mga strangers na’to sila ‘yung mga customers natin na kahit hindi tayo kilala bumili, nag-support, nagtiwala. It’s just right na after they buy kailangan natin silang alagaan at ibigay natin ‘yung best natin to incentivize or reward them for supporting our business.” - Jungie Gumiran

“‘Yung halimaw na financial advisor sa office namin dati ang daming niyang clients kasi she does retention marketing. Ang ginagawa niya is nagpapadala siya ng tikoy kapag Chinese New Year at brithday card ‘pag birthday. Gan’un lang ka-simple. Kahit ‘yung mga kumuha na ng insurance before kumukuha ulit sa kanya because of that great experience.” - Airon dela Cruz

“Kung meron ka mang bibigyan ng oras and effort, I would say ‘yung mga customers mo na kasi ‘yun nagtiwala na sa’yo, nagbigay na sila ng pera sa’yo. They gave you their trust, so alagaan mo ‘yung trust na ‘yun para sila rin ‘yung magiging ambassadors mo in the future.” - Airon dela Cruz

Connect with Airon dela Cruz

• Facebook:https://www.facebook.com/aironfaustine 
• Website:https://learnkeme.com/ 
• Linkedin: https://www.linkedin.com/in/airondelacruz/ 

Connect with Jungie Gumiran

• Facebook: https://www.facebook.com/jungie.gumiran 
• Website:https://www.adslevelup.com/
• Youtube: https://www.youtube.com/c/JungieGumiran 
• Linkedin:https://www.linkedin.com/in/jungie-gumiran

Connect with Wala Kang Benta - The Podcast

• Website: https://walakangbenta.com/
• Facebook Page: https://www.facebook.com/walakangbenta
• Instagram: https://www.instagram.com/walakangbenta

We love to hear from you! For comments and suggestions, and if you want to be featured on the show email us at walakangbenta@gmail.com.