The Evolution Of New Age Retention Stack
2021 is unarguably the beginning of the new era of consumer marketing around the globe. We can point our fingers at the worldwide pandemic, change in consumer behavior across industries, and a sudden surge in digital content consumption all over the world.
The new era highlights the need for establishing customer loyalty as the only sustainable driver of brand growth. You've heard it time and time again – “It's more economical to get existing customers to make a repeat purchase than it is to find new customers.” Thanks to global uncertainty in markets and consumers alike, the marketing budgets have started depleting.
Brands need to start prioritizing customer retention to decode hypergrowth.
In his book The Loyalty Effect, Fred Reichheld writes, “a 5% improvement in customer retention rates will yield between a 25 to 100% increase in profits across a wide range of industries.” First, let this sink in.
And when you've understood the potential of this growth enabler, let's learn the complete science of retention-led growth. Let's dive deep into the evolutionary phases of a brand's retention stack.
Unlearn: The Traditional Retention Approach
To begin with, you need to unlearn everything that holds back your marketing potential. Your old retention strategies have never materialized into a significant growth engine. And it is no rocket science to understand the glitches that exist.
A retention stack sits on the foundation of a Customer Data Platform. It forms the bedrock of the entire stack, structuring the possible functionalities it can have. So, does your current CDP grant you the power to know your customers at scale, understand their behavior in real-time, and provide actionable insights? Does it unbox the possibilities of comprehensive customer profiling? If your answer is not a solid YES and you still need a skyscraper stack, focus on laying a better foundation with an actionable CDP solution.
The biggest problem with traditional retention strategies is that the customer data stays under-utilized. The issue occurs mainly when the marketers keep two different software for managing their customer data and orchestrating campaigns. There is a big hassle of an end-to-end integration of additional legacy software. The failure of complete integration lowers the potential of your retention stack to have a unified customer view. This, in turn, limits your marketing operations and your ability to drive intelligent engagement.
Even though you're spending fortunes on the legacy software and unraveling the tangled integration lines, all you achieve is a disconnected experience for your customer. You are left with mass-blast campaigns with limited channel options and a poor strategy that fails in delivering a personalized customer experience.
Drive Retention Through An Evolved Martech Stack
The world of Marketing Automation is growing leaps and bounds. It has created incredible opportunities for consumer marketers striving to decode retention-led growth. Today, an evolved MarTech stack offers on-point solutions to the problems of the traditional approach.
once you have a bird's eye view of the entire customer journey through all the digital touch-points, you're in a position to deliver a seamless omnichannel experience to drive retention like never before
The new-age retention stack allows you to draw all the actionable insights you need for your customer lifecycle campaigns. You can leverage dynamically updated behavioral data to drive highly contextual and personalized campaigns. The CDP offers inclusive customer profiles that empower you to explore the possibilities of hyper-personalization at scale. You're one step ahead in grabbing customers' attention through the most relevant messages at the most appropriate time and on the channel of their choice.
To establish a people's favorite brand, you need to engage with the customers with contextual messages that add value to their lives. It all begins with recording every customer interaction and carrying out intelligent analysis to ensure proper context in future engagements. And once you have a bird's eye view of the entire customer journey through all the digital touch-points, you're in a position to deliver a seamless omnichannel experience to drive retention like never before.
The New Era Of Retention Operating System
The world of consumer marketing is stepping into the era of the Retention Operating System. Yes, you read that correctly - a one-stop platform to declutter your complex retention stack and spearhead retention-led growth.
Moving towards adopting the Retention OS will power your brands' all-around customer retention efforts and save a considerable chunk of your marketing budget. You'll function solely independent of any developer's support and become a source of significant revenue generation for the brand, powered by an actionable communication strategy.
The Retention OS is a single suite for marketers to store user data, provide actionable insights, orchestrate omnichannel campaigns by leveraging user insights, and provide a highly personalized end-user experience through dynamic segmentation. In a nutshell, you're getting all the infinity stones to make your brand a marvel in the race to winning brand evangelists.
If you're in the race to build loyalists and evangelists for your brand and are striving to lead retention-led growth, let me summarize the critical necessities for you to win the fight for retention:
A robust data warehouse that delivers real-time and actionable insights tracking both personal and behavioral data.
An omnichannel campaign orchestrator that leverages those insights and runs user lifecycle campaigns across multiple channels.
A personalization tool that uses dynamic segmentation to deliver a hyper-personalized experience through your campaigns and the front-end of your websites and mobile applications.