SHHHH. Let’s whisper because we’re going to talk about a dirty word.
It’s a word most businesses don’t like to talk about.
It’s a word most businesses don’t want to worry about.
It’s a word most businesses don’t want to do anything about.
It’s the least sexy word in business.
Retention is about keeping the customers you already have and making them buy again and again or cross-sell other products and services to them.
As marketers, we’re hunters. We like to go out there and find new buyers and leads.
But businesses can increase sales more easily by solving problems with customer retention and churn than they can by mastering acquisition – especially those businesses that have become well-established in the market.
Headspace is a good example.
CASE STUDY: HEADSPACE
What is Headspace?
Headspace is an app that’s already popular as a subscription purchase for people to meditate, de-stress and bring more calm to their lives.
But the company had a retention goal: it wanted to keep customers already acquired and make them buy more products.
Russ says the beautiful thing about a customer you already have is that you’ve previously “paid the price”: you’ve invested the time, money and the energy to acquire them.
If you can retain that customer, the revenue generally is much more profitable because you didn’t have to buy traffic, say, on Google Ads, or build content to lure them.
THE FUNDAMENTALS OF A MARKETING CAMPAIGN:
For any marketing campaign to work, you must have certain fundamentals:
- Traffic source(s)
- Content (optional)
- Community (optional)
The first two are essential.
Here’s how the Headspace marketing campaign solved its retention problem.
Offer: Learn the basics of meditation.
Traffic source: Email
Content: A Guide on the Basics of Meditation.
Onboarding sequences like this are campaigns built by a marketing team to retain customers.
This marketing campaign begins with an email: “Your meditation journey starts now”.
The idea is to retain customers by helping them be successful with what they already have shown they want: to meditate, take away stress and feel calmer.
Whatever their goal, Headspace can help customers achieve that by teaching them the basics of meditation. With renewed success, they will keep using and paying for the Headspace app.
Without such support after buying the app, customers are much more likely to disengage, tune out and cancel their subscription.
But the campaign proves to be a winner for retaining customers.
They’re activated. They’re onboard. They’re indoctrinated into the Headspace world.
It’s like the old saying: a bird in the hand is worth two in the bush.
Blog Post created from Russ Henneberry’s DMDU Connect LIVE 2020 Presentation.
If you would like to watch the full presentation, CLICK HERE and start your FREE 7 Day Trial.