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Customer Retention With Direct Mail

As a small business owner, you’re probably focused on attracting new customers. While new customers are important to your business, we’re going to let you in on a little secret: there’s more value in focusing on your current customers than attracting new ones. Customer retention marketing can cost up to 7 times less.

What Is Customer Retention?

Customer retention refers to a series of actions a business takes to keep their current customers coming back. It’s important to understand that customer retention begins with the very first contact you make with a customer and continues throughout their entire relationship with your business.

Why Customer Retention Matters

Increasing customer retention by as little as 5% can lead to profit increases of 25-95%. Plus, the likelihood of converting an existing customer into a repeat customer is 60-70%. The probability of converting a new lead? 5-20% at best. With numbers like this, it’s easy to see why retaining customers should be a top priority for your business.

3 Customer Retention Strategies Using Direct Mail

We know that direct mail is effective for attracting new customers, but what about retaining them? The key here is to know your customer and to tailor your message to meet their needs. Check out the 3 best ways to create customer retention using direct mail advertising.

1. Target

You’ve likely collected information on your customers and their purchases. Now it’s time to use this information to create a strategic direct mail campaign. Targeting customers who have purchased from your business in the past can boost sales up to 35%.

Let’s say you own a heating and cooling business. You wouldn’t want to send a customer who just had a new HVAC unit installed a coupon with an installation offer. Instead, focus on what comes after the installation. Target these customers with a maintenance plan special or quarterly reminders to schedule their maintenance service.

2. Drive Loyalty

Loyal customers are a major asset to your business. Nearly 80% of a business’s revenue is generated by the top 20% of their customers. Direct mail is a great way to keep your most loyal customers happy while growing your fan base.

Again, the key here is messaging. Target your biggest fans with an exclusive offer that inspires them to act or push customers to that next level of loyalty with an incentive. A flyer is a great way to feature all the awesome things about your business with enough room to include a special offer.

3. Reactivate

Winning back dormant customers is easy with direct mail. The first thing you need to know is why they’re no longer buying. Was it a bad experience or is it a matter of seasonality? Use a Business Reply Mail card or drive consumers to a unique URL printed on your piece to motivate them to respond to a survey. Don’t forget to thank them with an exciting reward.

Once you know why customers aren’t buying, you can work on re-establishing your relationship. Use a highly targeted direct mail campaign that addresses the reason they left and includes a motivating offer to return. Entice customers with special offers throughout the year, or simply use direct mail to stay in front of your customers, so that when they’re ready to buy again, you’ll be top of mind.

To sum up direct mail’s role in customer retention, check out this short United States Postal Service video. For more ideas on how you can drive customer retention and loyalty, contact your local Valpak representative.


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