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A Beginner’s Guide to Retention Marketing For Online Consumer Businesses Why You Need An Awesome
A Beginner’s Guide to
Retention Marketing
For Online Consumer
Businesses
Why You Need An Awesome
Retention Marketing Machine

Who should read this?

Who should read this? Growth Hacker Retention Marketer Product Marketer Campaign Manager Marketing Agency Employee

Growth Hacker

Retention Marketer

Who should read this? Growth Hacker Retention Marketer Product Marketer Campaign Manager Marketing Agency Employee

Product Marketer

Campaign Manager

Hacker Retention Marketer Product Marketer Campaign Manager Marketing Agency Employee CRM Manager If you are or

Marketing Agency

Employee

CRM Manager

If you are or aim to be one of these, it becomes your ultimate goal to generate more revenue for your company. This e-book will help you with just that.

Why should you read this?

Read this if you:

Have just started with your role in a fast paced growth companywith just that. Why should you read this? Read this if you: Are not sure of

Are not sure of what marketing campaigns will work for you and whyjust started with your role in a fast paced growth company Are unsure of how to

Are unsure of how to align your campaigns and processes to achieve higher revenue and faster growth for your companysure of what marketing campaigns will work for you and why An exercise for you Just

An exercise for you

Just answer these simple questions with a yes or no:

Acquiring more users and maximizing the footfall/downloads will help you alone to grow the revenue of your company?for you Just answer these simple questions with a yes or no: Sending blast emails about

Sending blast emails about offers to all your users gives a boost to your revenue and you should send them on a daily basis?will help you alone to grow the revenue of your company? To carry out any marketing

To carry out any marketing activity, do you devote 50% of your time planning it and 50% of the time executing it?to your revenue and you should send them on a daily basis? If at least one

If at least one of your answers is a yes, we recommend you to read on.

For others, head directly to page 11 where you learn about different nuances of

Retention Marketing.

read on. For others, head directly to page 11 where you learn about different nuances of

02

What will you learn?

Loads. Everything you need to bolster your confidence in user retention. Here is the

table of contents:

   
   
   
   
   
   
   
   
   
   
   
   
   
                               

03

Consumer Marketing

First, what is a Consumer Business?

Cola
Cola

A Consumer Business is one that sells directly to an individual who buys the product for personal use and not for resale (in short, he is the end user of the product).

Any time someone goes to a store (brick- mortar or online) to purchase a toy, shirt, beverage, or anything else, they make that decision as a consumer. Their decision however can be influenced by marketing and advertisements.

So that brings us to Marketing to a Consumer

Cola Cola
Cola
Cola

Marketing to a consumer is all about creating awareness and selling products and services to individual buyers. A soft drink advertisement on YouTube is the company marketing their product to its potential customers.

How were businesses marketing to their Consumers?

By promoting their product to as many users as possible. We call this general product- based marketing, which has, to date, been the most common form of marketing among businesses.

this general product- based marketing, which has, to date, been the most common form of marketing

04

Differentiate your Product while Marketing at High Scale

Comapnies relied on the strength of their product - its features, price point or other standout factor (aka the unique selling point - USP) that separated it from the rest of the competition.

For example, company A produced packaged water that were available in sleek bottles. These were easy to carry and store. All other companies at the same price point made only standard sized bottles. To influence user’s buying preference, marketing for company A pivotted on their variety and utility.

Have a look at the differentiating strategies of top packaged water manufacturers. They all manufacture water, but the key lied in focusing what they did best (or different).

Poland

Aquafina

Deja Blue

Dasani

Fiji

Smartwater

Perrier

San

Voss

Bling

Spring

Pelligrino

H2O

BOTTLE DESIGN:

Meh

Neat

TRENDINESS:

Not

Ver y

COST:

Cheap

Expensive

CONTENT:

Water

Uh, Water

All these companies manufacture water, but to succeed they had to concentrate on their USP

Water Uh, Water All these companies manufacture water, but to succeed they had to concentrate on

05

Major Focus on Acquiring more Users

To market their product, the major focus was on creating awareness among people. This gave the product more visibility. People who were not interested, automatically dropped off leaving businesses with users who purchased from them. The old marketing funnel looked like this.

from them. The old marketing funnel looked like this. This used to work for companies that

This used to work for companies that targetted mass users. Eg: A company that manufactured salt. Everyone needs salt. But will this work for an app that sells women’s shoes? Sure, every woman needs shoes, but remember:

The intense competition in the marketshoes? Sure, every woman needs shoes, but remember: Decreasing attention span of the user User’s preference

Decreasing attention span of the usershoes, but remember: The intense competition in the market User’s preference to brands which know them

User’s preference to brands which know them and care about their needsin the market Decreasing attention span of the user User’s impulse of buying the best at

User’s impulse of buying the best at the least priceto brands which know them and care about their needs When small or mid-sized online companies

When small or mid-sized online companies today adopted the current ‘acquisition heavy’ approach, they ended up getting plenty of downloads, but the long-term numbers, unfortunately, told another story.

approach, they ended up getting plenty of downloads, but the long-term numbers, unfortunately, told another story.

06

Product Based Marketing will help you get 60% of your Sales. But is that enough?

According to a report, only 2 out of 10 users who downloaded Android apps, continued to use it after 3 days (see graph below).

apps, continued to use it after 3 days (see graph below). What does this say? Sure,
apps, continued to use it after 3 days (see graph below). What does this say? Sure,
apps, continued to use it after 3 days (see graph below). What does this say? Sure,

What does this say? Sure, your website or app got the expected traffic but not every user was convinced to click “buy-now”, “subscribe”, or “sign up”. Would you say that the users found utility in your product? Will this help you get more revenue?

Moreover, the report says that users who passed this ‘3 day phase’, at the end of 30 days, only 5% of them remained after completing their desired goal (this could be a purchase, a subscriptiopn or a sign-up).

This was because in the old marketing funnel, companies were not paying attention to bringing customers back. Users would find the product attractive, use it once to avail some introductory offer, and leave within a week or month to move to a competitor or would abandon the product itself. Users had no incentive to stay back.

a week or month to move to a competitor or would abandon the product itself. Users

07

Just Acquiring Users is not good enough.

Users abandoning your product so soon is a bigger loss than you think:

It’s an immediate loss of revenue and hard work that was put into acquiring the user. As a result your Customer Acquisition Costs (CAC) go up. user. As a result your Customer Acquisition Costs (CAC) go up.

A lost opportunity to grow that user over time. One user gone is one user less to contribute to your revenue, i.e. lower Customer Life Time Value (CLTV).As a result your Customer Acquisition Costs (CAC) go up. Companies are now reluctant to continue

Companies are now reluctant to continue with this approach. They’ve realised that keeping a user for a longer period of time will ensure he spends more over their lifetime is the key to success.

that keeping a user for a longer period of time will ensure he spends more over
that keeping a user for a longer period of time will ensure he spends more over

08

How do you solve for Users not coming back?

It’s simple. Start focussing on bringing them back to your business - instead of concentrating on acquiring countless new customers, increase the profitability from those you already have.

CUSTOMER ACQUISITION

Activities that drive relevant traffic to your online properties

VS
VS

CUSTOMER RETENTION

Activities that improve the user experience and turn more visitors into repeat customers

USABILITY AND USER PREFERENCE COMMUNICATION CHANNELS A/B TESTING ANALYTICS IDENTIFYING USERS MORE VISITS SOCIAL
USABILITY AND
USER PREFERENCE
COMMUNICATION
CHANNELS
A/B TESTING
ANALYTICS
IDENTIFYING USERS
MORE VISITS
SOCIAL MEDIA
CUSTOMER
MARKETING
SATISFACTION
& ADVERTISING
EMAIL
MARKETING
Increase in purchase frequency (how often a
typical customer buys) and conversion rate
(ratio of number of purchase to users).
MOBILE
MARKETING
SEARCH
MARKETING
USER ONBOARDING
09

The New Marketing Funnel

The shift has led marketers to adopt a customer first approach that has made way for a new marketing funnel.

approach that has made way for a new marketing funnel. This funnel merges pre-purchase and post-purchase
approach that has made way for a new marketing funnel. This funnel merges pre-purchase and post-purchase
approach that has made way for a new marketing funnel. This funnel merges pre-purchase and post-purchase
approach that has made way for a new marketing funnel. This funnel merges pre-purchase and post-purchase
approach that has made way for a new marketing funnel. This funnel merges pre-purchase and post-purchase
approach that has made way for a new marketing funnel. This funnel merges pre-purchase and post-purchase
approach that has made way for a new marketing funnel. This funnel merges pre-purchase and post-purchase

This funnel merges pre-purchase and post-purchase stages to present a complete view of the entire customer lifecycle. Marketers should now own the complete customer lifecycle journey to maximize CLTV.

of the entire customer lifecycle. Marketers should now own the complete customer lifecycle journey to maximize

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A ‘Customer First’ Approach to Retention

For a Customer First approach, you

First identify the kind of customers that will be interested in your product/service (Awareness)Approach to Retention For a Customer First approach, you Reach out to them and get them

Reach out to them and get them onboard (Engagement and Product Discovery)that will be interested in your product/service (Awareness) Guide and lead them to a purchase (Purchase

Guide and lead them to a purchase (Purchase & Adoption)them and get them onboard (Engagement and Product Discovery) Pre-empt their needs constantly Give them reasons

Pre-empt their needs constantlyGuide and lead them to a purchase (Purchase & Adoption) Give them reasons to come back

Give them reasons to come back (Retention)(Purchase & Adoption) Pre-empt their needs constantly Build the brand (Expansion & Advocacy) Steps 3-6 form

Build the brand (Expansion & Advocacy)needs constantly Give them reasons to come back (Retention) Steps 3-6 form the core of Retention

Steps 3-6 form the core of Retention Marketing.

Advocacy) Steps 3-6 form the core of Retention Marketing. Retention Marketing is all about creating engaged

Retention Marketing is all about creating engaged customers that return to your business to shop again.

Marketing. Retention Marketing is all about creating engaged customers that return to your business to shop

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If Retention Leads to Growth, are all Companies using the same Strategy?

Not quite. That is because strategies and approach vary with the person you are selling to, what you are selling, and so on.

The two kind of companies that are out there: one that sells to a business - Business to Business (B2B) and one that sells directly to a consumer - Business to Consumer (B2C), use different tactics to market their products/service.

The term ‘Retention Marketing’ had come into play in early 2015, when B2B companies were using strategies to reduce their customer churn (or user abandonment). Hence, a lot of online content majorly focusses on B2B retention.

Google Trend results for the term ‘Retention Marketing’

Google Trend results for the term ‘Retention Marketing’ Avoid confusion. Make sure the right practices are

Avoid confusion. Make sure the right practices are implemented in your consumer business. Acknowledge the difference between marketing to a business and marketing to a consumer. Let me explain this with an example.

the difference between marketing to a business and marketing to a consumer. Let me explain this

13

B2C Retention: An Example

Here is an example to give you some perspective. Perhaps you want to head out for a beach holiday this summer. What would you do?

head out for a beach holiday this summer. What would you do? DAY 01 : Checking

DAY 01:

Checking for options; Channel: desktop, website

DAY 03:

Surfing social media; Channel: phone, social media app

DAY 03:

App link in ad; Channel: phone, official app

DAY 04:

Explore options; Channel: phone, official app

DAY 04:

Signs up for offers and newsletter; Channel: phone, official app

DAY 11:

Discounts on hotels; Channel: desktop, email

DAY 11:

Tickets booked; Channel: desktop, website

DAY 11 : Discounts on hotels; Channel: desktop, email DAY 11 : Tickets booked; Channel: desktop,

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The final purchase took

2 weeks

3 different screens and

4 communication channels

Would these tactics work for a B2B scenario? Not quite. The end users are mostly teams. So, you need a communication channel that can be accessed collectively by the entire. This could be a website, an email or a phone call.

Hence, while marketing to a B2B, one works hard interacting one on one, to streamline the buying process in order to save time and money. This explains why a B2B purchase is based more on logic and why a consumer’s purchase is typically emotionally triggered (whether by hunger, desire, status or cost).

logic and why a consumer’s purchase is typically emotionally triggered (whether by hunger, desire, status or
logic and why a consumer’s purchase is typically emotionally triggered (whether by hunger, desire, status or

15

B2B vs B2C Retention

Different nuances of B2B and B2C Retention Marketing Due to this, you need to employ different

Due to this, you need to employ different strategies and metrics to retain customers for your company.

Marketing Due to this, you need to employ different strategies and metrics to retain customers for

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Only 21% B2C companies claim to have a Retention Team. Why are these numbers so low?

Consumer businesses find it difficult to implement retention. Here are few reasons why:

Maximum marketing budget goes into acquisition of users. 75% of the users remain unknown. Without their contact information it becomes difficult to communicate
75% of the users remain unknown. Without their contact information it becomes Maximum marketing budget goes into acquisition of users. difficult to communicate with them. Users invariably switch difficult to communicate with them.
information it becomes difficult to communicate with them. Users invariably switch between devices - mobile to Users invariably switch between devices - mobile to desktop or vice versa. Tracking user behaviour and timely engagement on these touch-points becomes tricky.
Once you know how to connect with the user on all touch-points, you need to make sure your communication is coherent. User should not feel spammed. and timely engagement on these touch-points becomes tricky. B2C has thousands or millions of users. To
B2C has thousands or millions of users. To adopt a customer centric marketing approach means abolishing the worn-out bulk emails. However, with increase in communication is coherent. User should not feel spammed. users, these ‘one on one’ engagement strategies become users, these ‘one on one’ engagement strategies become difficult to scale.
User’s attention span has become much lower. One needs to constantly reinvent on one’ engagement strategies become difficult to scale. ideas to interact. Identifying user intent is very ideas to interact.
Identifying user intent is very tricky - every user action on your portal signals his intent. Eg: For a supermarket, the size of his shopping cart, enquiries about lower. One needs to constantly reinvent ideas to interact. a specific product etc shows his intent a specific product etc shows his intent of making a purchase. Similarly, for an online store, if the user searches for shoes, reads comments/reviews, makes price comparisons, means he is more likely to make a purchase than a user who is simply surfing items once a fortnight. Retention for B2C is all about identifying these markers.
Retention for B2C is all about identifying these markers. Identifying the right technology to help you Identifying the right technology to help you fill this information gap requires effort.

To make retention marketing work for you, it’s vital to answer all these questions. You need a way to communicate, engage, retain, and monetize your users more successfully and with less effort.

You need a way to communicate, engage, retain, and monetize your users more successfully and with

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Marketing Automation helps you overcome these Roadblocks

Today, Marketing Automation, as a software aids all of this. It is a platform specifically designed to drive engagement via many channels. A platform that lets you understand your users, their usage patterns on a daily basis, and helps you to communicate with them at their best moments. It helps you:

Identify users (both anonymous and known) and understand user behaviorcommunicate with them at their best moments. It helps you: Create a coherent marketing communication plan

Create a coherent marketing communication plan across multiple channels(both anonymous and known) and understand user behavior Prevent over-communication across all channels of engagement

Prevent over-communication across all channels of engagementmarketing communication plan across multiple channels Automate these complex engagement workflows via a single

Automate these complex engagement workflows via a single platformPrevent over-communication across all channels of engagement Experiment, analyze your campaigns Scale-up successful

Experiment, analyze your campaignsthese complex engagement workflows via a single platform Scale-up successful experiments Dedicate more time in

Scale-up successful experimentsvia a single platform Experiment, analyze your campaigns Dedicate more time in designing and optimising campaigns

Dedicate more time in designing and optimising campaigns than just executing themanalyze your campaigns Scale-up successful experiments There’s never been a more promising time to be a

designing and optimising campaigns than just executing them There’s never been a more promising time to
designing and optimising campaigns than just executing them There’s never been a more promising time to
designing and optimising campaigns than just executing them There’s never been a more promising time to

There’s never been a more promising time to be a marketer. In our next e-book, we will explain how you MA can help you implement and scale your retention efforts. You can pre-book your copy here.

will explain how you MA can help you implement and scale your retention efforts. You can

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Key Takeaways

Let’s summarise the e-book for you:

Consumer marketing was all about increasing visibility of your product/brandKey Takeaways Let’s summarise the e-book for you: The traditional ways are no longer working for

The traditional ways are no longer working for current online businesseswas all about increasing visibility of your product/brand Acquisition, without retained users was filling a leaky

Acquisition, without retained users was filling a leaky bucket. Customer acquisition costs go up and CLTV goes down. costs go up and CLTV goes down.

Owing to this businesses are using retention as the most important strategy for growth.Customer acquisition costs go up and CLTV goes down. Keeping a user for a longer period

Keeping a user for a longer period of time will ensure he spends more over their lifetime.using retention as the most important strategy for growth. This shift led to adoption of a

This shift led to adoption of a new marketing funnel that focuses on customers.of time will ensure he spends more over their lifetime. It lays stress on communicating with

It lays stress on communicating with the user to make him come back to your portal/product.of a new marketing funnel that focuses on customers. Your main goal is to guide those

Your main goal is to guide those users to become avid customers and, ultimately, ambassadors.with the user to make him come back to your portal/product. Not to be confused with

Not to be confused with B2B retention where purchase is based more on logic and why a consumer’s purchase is typically emotionally triggered why a consumer’s purchase is typically emotionally triggered

Consumer today is present on more than one device and channel. Hence, all the modes of communication need to be utilized to get maximum impact.a consumer’s purchase is typically emotionally triggered But make sure the communication is coherent. To do

But make sure the communication is coherent.of communication need to be utilized to get maximum impact. To do this, and do it

To do this, and do it well, you need a platform specifically designed to drive engagement via many channels. A platform that lets you understand your users, their usage patterns engagement via many channels. A platform that lets you understand your users, their usage patterns on a daily basis, and helps you to communicate with them at their best moments.

your users, their usage patterns on a daily basis, and helps you to communicate with them
your users, their usage patterns on a daily basis, and helps you to communicate with them

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Next Steps

To achieve retention like industry leaders Netflix, Spotify etc., you first need to identify your users and channels of communication. We call this finding the right marketing mix. Start by observing what the giants are doing.

Have a look at some great examples from Netflix. For each one of them below, identify the following (we have filled the first one for you):

the following (we have filled the first one for you): Channel type - website. Message type

Channel type - website. - website.

Message type - on-site message. - on-site message.

Who is it intended for - returning user. One that has an account. - returning user. One that has an account.

Aim of the message - personalised welcome message and recommendations based on past history. - personalised welcome message and recommendations based on past history.

What would it change for the company - More views, user longevity, repeat subscriptions - More views, user longevity, repeat subscriptions

based on past history. What would it change for the company - More views, user longevity,

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Want to start working on your own retention strategy?

Or learn from Journey Gallery - pre-made retention workflows for problems that are most frequently encountered by online consumer businesses.

most frequently encountered by online consumer businesses. WebEngage is a multi-channel user engagement platform which

WebEngage is a multi-channel user engagement platform which automates communication across users’ life-cycle. It enables you to connect with them via. Web Messages (notification, survey and feedback), In-App Messages, Push Notifications, Emails and Text Messages.

+1 (408) 890-2392and feedback), In-App Messages, Push Notifications, Emails and Text Messages. support@webengage.com @Webengage /Webengage

Messages, Push Notifications, Emails and Text Messages. +1 (408) 890-2392 support@webengage.com @Webengage /Webengage
Messages, Push Notifications, Emails and Text Messages. +1 (408) 890-2392 support@webengage.com @Webengage /Webengage