If you are living in a point in time of recession and cost cutting where should your marketing efforts focus? On retention.
At this point, Post acquisition marketing is what matters the most. You have already spent money on acquiring these customers. So now it is about optimizing the spend on them.
Increase average revenue per customer
Which means increasing the average revenue per customer through different means brings us to formulating a retention strategy.
Apart from spending some money to acquire this customer, you also spent some money on maintaining them.
Now you need to convince them to pay you more in either of the following ways.
How do you do that?
Retention selling and revenue management
- Convince them to buy more of existing products. Here’s when your existing customers would be willing to do that – when they are scaling up.
- Sell more features of the same product ( a better version of the product). Your customers would be willing to invest more on the same product when then want to see a higher ROI. This is possible when they want to do a lot more than what they are getting done by the existing version.
- Cross-selling. Sell other products or services from your portfolio.