Monthly struggles with attribution make it almost impossible to pinpoint which touchpoints deserve credit. Opinions on the 'right' attribution model vary wildly, creating confusion. This issue is magnified in agency spaces filled with marketers who lack holistic ecommerce know-how.
So, how do you handle monthly reporting when every channel seems to over-attribute? The key is to shift your focus from attribution to retention metrics.
Retention metrics are essential for mapping customer journeys, understanding behaviour, and helping optimise marketing strategies. This holistic, data-driven approach also positions brands to forecast and achieve growth targets because, ultimately, a company depends more on recurring revenue than on gaining new customers.
Why Retention Metric Matter
- Maximising Customer Lifetime Value (CLV): Increases long-term profitability by deriving more value from each customer over time.
- Cost Efficiency: Retention is more cost-effective than acquisition, offering higher returns on investment and better resource optimisation. Businesses have a 60% to 70% chance of selling to an existing customer, while for a new prospect it’s just 5% to 20% (Forbes quoting from Marketing Metrics). Repeat customers spend 67% more than new customers (BIA Advisory Service).
- Customer Advocacy: Satisfied customers become brand advocates, driving organic growth and fostering loyalty.
- Predictable Revenue: A loyal customer base means stable revenue and accurate forecasting.
Strategies for Boosting Customer Retention
- Personalisation: Leverage the top tech stack for tailored marketing experiences that address individual customer needs and preferences, fostering deeper loyalty and customer engagement.
- Exceptional Customer Service: Implement responsive, omnichannel support systems that provide consistent and helpful customer service across all touchpoints. Building trust through exceptional customer service encourages repeat business and strengthens customer relationships.
- Loyalty Programs: Design robust loyalty programs that offer meaningful rewards, such as discounts, exclusive deals, and early access to new products.
- Regular Engagement: Use full-service email marketing to maintain regular, personalised communication with customers. This ensures you stay top-of-mind, reinforcing the customer relationship and encouraging continued engagement with your brand.
- Feedback Loops: Actively collect and act on customer feedback using advanced sentiment analysis tools. Demonstrating that you value and respond to customer input significantly boosts satisfaction and retention, creating a positive feedback loop that enhances overall customer experience.
Bottom Line
Marketing attribution isn't a single source of truth. By focusing on retention metrics, you build stronger relationships, cut costs, and ensure predictable revenue—essential for long-term success.
Embed customer retention strategies in every part of the customer lifecycle and celebrate them as you do sales. Even a small investment in customer retention can transform one-time buyers into lifelong customers, delivering immense value.
Discover how R360 Growth can fuel sustainable profitability and long-term success with a robust loyalty strategy. Connect with us at hi@r360growth.com or via our online form here.
We look forward to exploring growth opportunities with you.
Profitability: 2024 is all about demonstrating a clear path to profitability with unique, ownable differentiation. Investors seek brands that can prove long-term profitability and sustainability. [Read blog post: 'How to Stand Out Amid 9% Growth and Investor Scrutiny in 2024']
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