Do you remember the childhood song that extolls the value of friendship?
Make new friends but keep the old. One is silver and the other’s gold.

It’s a simple but wise reminder that also applies to marketing strategy. Intrigued and singing along? Keep reading.

We spend a lot of time working with our clients to feed the marketing funnel. Generating fresh, high-quality leads is critical for growth. Well-crafted campaigns that catch the target audience’s attention, prompt them to learn more, and, ultimately, take action are a fascinating mix of art and science. Bringing prospects along the funnel is a challenge that the MELD team is always up for. After all, who doesn’t love exceeding your conversion rate goal?

But the thing is, the marketing funnel is always hungry. As a result, marketers can get overly focused on the top of the funnel – awareness, consideration, action, repeat. When that happens, customer retention and cross-sell strategies – focused on the “gold” friends from the song – can take a backseat in terms of attention, resources, and spending. And that’s not good for growth.

Why marketing shouldn’t stop at conversion

The stats are compelling. Depending on the industry, acquiring a new customer costs five to 25 times more than keeping a current one.¹ Plus, analysis by Bain and Company shows that increasing customer retention by 5% increases profits anywhere from 25% to 95%.¹ And one more: The probability of making a sale to existing customers is 60%, compared to 5-20% for new customers.²

However, marketing strategies – and budgets – don’t always reflect the bottom-line value of current customers. A recent survey of B2C marketing executives found that 54% of companies spend more than half of their marketing budgets on acquisition strategies. Only 13% allocate more than half of the annual budget to retention-focused marketing.³

The good news is, you don’t have to choose one or the other. For most companies, a slight recalibration to dial up marketing to existing customers makes a significant impact. More good news? Current customers are accessible and receptive to your products, messages, and brand!

So, how do you rebalance your strategies between “silver” and “gold?” Here are five ways to jumpstart your post-acquisition marketing plan.

1. Get personal.
Your customers notice when you show that you know them. Turning data points into personalized messages strengthens customer relationships. Acknowledge a first purchase with a handwritten thank-you note from the salesperson. Customize offers and recommendations based on previous purchases. Deliver relevant content to help customers optimize your products and services. And, most importantly, add personal touches throughout regular communications, including newsletters, email campaigns, and direct mail.

2. Reward loyalty.
In today’s fast-moving, competitive marketplace, it’s not enough to have good products and services. Long-term success also relies on loyal, repeat customers. Loyal customers are more likely to try new products, stick with your company even after a less-than-stellar experience, and continue to buy from you despite other brands offering a better price. Create a loyalty program that’s tailored for your best customers. And remember, rewards don’t have to be monetary. Offer first looks, exclusive access, or service perks.

3. Dig into your CRM.
Look for ways to do more with the data captured by your customer relationship management (CRM) tools. Can you analyze and identify purchase patterns? Are you tracking and monitoring engagement by customer segment, repeat purchase behaviors, and churn rates? When data is accessible and embedded in your day-to-day marketing conversations, you’re able to spot – and act on – opportunities early.

4. Cultivate referrals.
Loyal customers are also fierce brand advocates – and leads that come from existing customers are always warm! Make the most of this valuable word-of-mouth by giving customers easy options for recommending your services. Spark referrals through obvious methods like inviting them to provide a review or offering a reward when their referral turns into a customer. Less direct advocacy options include featuring a customer in a case study or social media post.

5. Ask – and listen.
One of the best ways to build strong customer relationships post-acquisition is to establish an authentic two-way conversation. Tapping into existing customers for feedback on how you’re doing is a must. But take it a step further. Bring them into the discussion when you’re developing a new product or service. Their perspectives are invaluable at different stages, from concept testing through launch.

What would you add to our list? How have your marketing strategies evolved to balance lead generation and retention? Is it time to do a little post-acquisition brainstorming? Reach out anytime.

Sources:
1 Here’s Why Customer Retention is So Important for ROI, Customer Loyalty, and Growth, HubSpot, March 2022.
2 How to Calculate Your Customer Retention Rate, Business News Daily, February 2023.
3 Optimove 2023 Survey of B2C Marketers, May 2023.