Midwestern Values Meet Entrepreneurship: 4 Startup Lessons from Fuse50 Cincinnati
We’ve all spent some long nights looking over models of Long-Term Value over Cost to Acquire, and the math doesn’t get kinder with time. The natural levers are the natural levers. More customers. Greater value. Longer relationships.
It’s well known that the cost to acquire a new customer is higher than the cost to retain, usually by a factor of several times to several dozen times.
But if this is the case, then shouldn’t we be costing out how much it will take to double the lifetime of our relationships, and putting strategies in place to delight our customers in order to do it?
It’s true, customer acquisition often operates on a known equation. X dollars for an MQL, Y dollars for an SQL. My lead conversion rate is this. My close rate is that.
But why do my customers leave me? If, as a startup, you’ve had 5,000 at-bats with prospects from demo to close, and only 300 total customer relationships, it can be hard to empirically know the difference between one or the other.
So for startups on their first or second rounds of funding, the differences between acquisition and retention demand a sort of faith. You have to believe in the idea that if you take care of your customers, they’ll reward you with long, profitable relationships, referrals and the maintenance of your good name.
So if you’re up for helping your clients service that good name, here are some tactical retention levers that we’ve seen work, both in our own business and in clients’:
Social media is great for instant access to information, but it has also opened the floodgates when it comes to leaving companies open to criticism online. Bugs in the last release? You’re going to get tweets. Password issues? The chat service is going to light up. Digital response times are crucial. Here are a few ways to make sure you’re doing everything you can be to delight customers:
Want to make retention a priority? Dedicate people and time to it. Talk about why customers love you, and why they don’t. Set regular time on your calendars to meet and drive your plans forward.
Nothing says unsubscribe like a service that doesn’t get used. Think HBO in the “Game of Thrones” off-season.
Since you’ve put considerable energy now toward measuring engagement (we assume you nailed #4 already, good job!), take your most highly engaged accounts and introduce them to premium features, since they already have such a great handle on your service. Strictly speaking this isn’t a “retention” strategy, but the aftereffects of a very good one.
These Content Marketing articles have been curated by our friends at Raidious, a real-time digital marketing agency.