{"id":14116,"date":"2021-07-06T12:20:45","date_gmt":"2021-07-06T12:20:45","guid":{"rendered":"https:\/\/www.valpak.com\/?p=14116"},"modified":"2021-07-30T16:40:40","modified_gmt":"2021-07-30T16:40:40","slug":"customer-retention-with-direct-mail","status":"publish","type":"post","link":"https:\/\/www.valpak.com\/advertise\/blog\/customer-retention-with-direct-mail","title":{"rendered":"Customer Retention With Direct Mail"},"content":{"rendered":"

Reading time: 3 minutes<\/em><\/p>\n

As a small business owner, you\u2019re probably focused on attracting new customers. While new customers are important to your business, we\u2019re going to let you in on a little secret: there\u2019s more value in focusing on your current customers than attracting new ones. Customer retention marketing can cost up to 7 times less<\/a>.<\/p>\n

What Is Customer Retention? <\/strong><\/h2>\n

Customer retention refers to a series of actions a business takes to keep their current customers coming back. It\u2019s important to understand that customer retention begins with the very first contact you make with a customer and continues throughout their entire relationship with your business.<\/p>\n

Why Customer Retention Matters<\/strong><\/h2>\n

Increasing customer retention by as little as 5% can lead to profit increases of 25-95%<\/a>. Plus, the likelihood of converting an existing customer into a repeat customer is 60-70%<\/a>. The probability of converting a new lead? 5-20% at best. With numbers like this, it\u2019s easy to see why retaining customers should be a top priority for your business.<\/p>\n

3 Customer Retention Strategies Using Direct Mail<\/strong><\/h2>\n

We know that direct mail<\/a> is effective for attracting new customers, but what about retaining them? The key here is to know your customer and to tailor your message to meet their needs. Check out the 3 best ways to create customer retention using direct mail advertising.<\/p>\n

1. Target<\/strong><\/h3>\n

You\u2019ve likely collected information on your customers and their purchases. Now it\u2019s time to use this information to create a strategic direct mail campaign. Targeting customers who have purchased from your business in the past can boost sales up to 35%.<\/p>\n

Let\u2019s say you own a heating and cooling business. You wouldn\u2019t want to send a customer who just had a new HVAC unit installed a coupon<\/a> with an installation offer. Instead, focus on what comes after the installation. Target these customers with a maintenance plan special or quarterly reminders<\/a> to schedule their maintenance service.<\/p>\n

2. Drive Loyalty<\/strong><\/h3>\n

Loyal customers are a major asset to your business. Nearly 80% of a business\u2019s revenue is generated by the top 20% of their customers. Direct mail is a great way to keep your most loyal customers happy while growing your fan base.<\/p>\n

Again, the key here is messaging. Target your biggest fans with an exclusive offer that inspires them to act or push customers to that next level of loyalty with an incentive. A flyer<\/a> is a great way to feature all the awesome things about your business with enough room to include a special offer.<\/p>\n

3. Reactivate<\/strong><\/h3>\n

Winning back dormant customers is easy with direct mail. The first thing you need to know is why they\u2019re no longer buying. Was it a bad experience or is it a matter of seasonality? Use a Business Reply Mail<\/a> card or drive consumers to a unique URL printed on your piece to motivate them to respond to a survey. Don\u2019t forget to thank them with an exciting reward.<\/p>\n

Once you know why customers aren\u2019t buying, you can work on re-establishing your relationship. Use a highly targeted direct mail campaign that addresses the reason they left and includes a motivating offer to return. Entice customers with special offers throughout the year, or simply use direct mail to stay in front of your customers, so that when they\u2019re ready to buy again, you\u2019ll be top of mind.<\/p>\n

To sum up direct mail\u2019s role in customer retention, check out this short United States Postal Service video<\/a>. For more ideas on how you can drive customer retention and loyalty, contact your local Valpak representative<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Increasing customer retention by as little as 5% can lead to profit increases of 25-95%. Check out the 3 best ways to create customer retention.<\/p>\n","protected":false},"author":2,"featured_media":21406,"comment_status":"open","ping_status":"open","sticky":false,"template":"siege-2018.php","format":"standard","meta":{"_acf_changed":false,"_uag_custom_page_level_css":"","_swt_meta_header_display":false,"_swt_meta_footer_display":false,"_swt_meta_site_title_display":false,"_swt_meta_sticky_header":false,"_swt_meta_transparent_header":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-14116","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"yoast_head":"\nTop 3 Ways To Create Customer Retention With Direct Mail<\/title>\n<meta name=\"description\" content=\"Customer retention increases of 5% can lead to profit increases of 25-95% for small businesses. 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