If acquisition marketing is the doorway to new customers, retention marketing helps marketers latch the door shut to keep those new customers from wandering away. Marketing research across industries says that businesses need to retain a customer for at least 12 to 18 months to break even on this initial investment. At that point, retention marketing costs only a fraction of what you spend to acquire new customers – and it helps you keep the people who buy more and refer more.
Obviously, individual cases vary, but the goal never changes. Customers who have bought from a business before are more likely to spend money with that business again, and an average consumer will refer up to three other people to a business after an initial purchase. (This, of course, assumes customer service met expectations and the business stays top-of-mind.)
Loyal customers who spend regularly and refer others is where you want your marketing investment to lead. And the best organizational structure to get there is the Maintenance Agreement. This membership-oriented service is how the Customer Retention program formalizes into a year-round profit generator and cash-flow stabilizer that locks-in customers even tighter with your company.
Seasonal equipment maintenance, along with discounts and priority service, add value to your relationship with your customers. Plus, the accumulation of Maintenance Agreement memberships provides regular work during slow seasons and evens out cash flow year-round. The added value of being in the home once or twice a year also makes your company top-of-mind for referrals as your customers talk with their friends and family about the service you provided.
Is there a better return on investment than signing customers up for a program that allows you to return to their home year after year?