Indian Brands High On Customer Retention
E-commerce entrepreneur Richard Lazazzera notes that “Your current customer is the best asset your store has. They already know your brand, they know your products and they know your service. Focusing your time and energy on this group as oppose to always always trying to find new customers can be a powerful way to supercharge revenues for your brand.”
Based on this thought, a new study reveals that while customer acquisition is a key goal for Indian online marketers, an increasing number of brands are looking to retain customers as well.
The State of e-Marketing India 2015 report, from marketing technology company Octane, surveyed 465 marketers from 399 organizations and 12 industry verticals to assess how online marketing has changed over the past four years and how practitioners see it developing in 2015.
The study shows that more than half (56 percent) said customer acquisition as their main marketing target, a proportion that has remained broadly the same since 2011. However, the biggest change in recent years has come in terms of customer retention, which has increased steadily from 11 percent in 2011 to 20 percent in 2015 – making it a primary goal for marketers.
The key e-marketing activities they were deploying to achieve their goals in 2014 include websites (71 percent), email marketing (71 percent) and social media marketing (69 percent). These areas had incidentally seen the greatest increases in investment during 2015. The study also noted that India’s e-marketers were investing more time and energy to create engaging content, with 61 percent reporting this helped them increase brand awareness, whereas more than half of the respondent the ability to attract and retain existing customers by 53 percent.
While marketers in almost every sector preferred blogs and newsletters for their content marketing initiatives (61 percent) ahead of social media (52 percent), in sectors such as education, retail, e-commerce and travel, social media was the top choice. Experts believe that marketers should focus on having a strong digital roadmap, especially a smartphone-friendly strategy in place if they have to acquire and retain customers.
The government’s Digital India Plan has set out targets for 250,000 villages to have internet access in the next 4 years for users to have wireless broadband access and for every person to have a smartphone. The study sees 23 percent respondent said they already had a responsive website, 28 percent had both responsive email and website and 14 percent had a mobile app while 18 percent had yet to develop a responsive website.
“Creating a loyalty program that can be as simple as rewarding customers on their second purchase sending a small gift to your best customers or offering discount on their special dates can be some of the great ways to remind them to come back to your site or store,” says social media strategist Natasha Mukherjee. She also believes that sending timely newsletters, email and social media posts can help customers get updates on the latest offerings and some of the good way for brands to connect to their customers.
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