Marketing Mix for Retaining Customers

Last Updated: August 19, 2010By Tags: ,

To achieve better sales and profits, most companies could be doing more to cultivate business from their existing customers. However, enthusiasm for customer-retaining strategies must not endanger sound customer-getting efforts. How companies balance the two is the big question.

To intensify reaching old customers while still seeking new ones, for many firms, will mean changes in market analysis, planning systems, management incentives, and marketing and/or operations organization. In the rush toward growth, consumer marketers have tended to regard success as stemming from obtaining new customers while unwittingly minimizing the importance of satisfying old ones. It is time for more companies to distinguish between their getting and retaining functions, to assess the balance between them, and to remedy any deficiencies in customer retention. This process requires management to value the potential of current customers and to treat them in special ways to get them to keep coming back.

Several major elements should be part of the new marketing mix for customer retention:

Product extras
Keeping customers frequently requires giving them more than the basic product that initially attracted them. Product extras for individual customers over time can play a sales-expansive role.

Reinforcing promotions
Product promotion works better when aimed at existing customers. If a marketer knows who these customers are, benefits can be obtained by giving them reinforcing communications.

Sales force connections
The sales force can play a decisive role in the customer-retention function. At a retail or service counter the salesperson is the focal point of the company’s strategy and is the firm to the customer.

Post-purchase communication
A company must anticipate that some customers will encounter either minor or serious problems after purchasing. If the firm is not ready to hear and correct these difficulties, the customer may not repurchase  or may cancel the the relationship. Whether company or customer is at fault, standby post-purchase activities can be instrumental in saving these customers.

Chintan Bharwada

Chintan is the Founder and Editor of Loyalty & Customers.

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To achieve better sales and profits, most companies could be doing more to cultivate business from their existing customers. However, enthusiasm for customer-retaining strategies must not endanger sound customer-getting efforts. How companies balance the two is the big question. To intensify reaching old customers while still seeking new ones, for many firms, will mean changes in market analysis, planning systems, management incentives, and marketing and/or operations organization. In the rush toward growth, consumer marketers have tended to regard success as stemming from obtaining new customers while unwittingly minimizing the importance of satisfying old ones. It is time for more companies to distinguish between their getting and retaining functions, to assess the balance between them, and to remedy any deficiencies in customer retention. This process requires management to value the potential of current customers and to treat them in special ways to get them to keep coming back. Several major elements should be part of the new marketing mix for customer retention: Product extras Keeping customers frequently requires giving them more than the basic product that initially attracted them. Product extras for individual customers over time can play a sales-expansive role. Reinforcing promotions Product promotion works better when aimed at existing customers. If a marketer knows who these customers are, benefits can be obtained by giving them reinforcing communications. Sales force connections The sales force can play a decisive role in the customer-retention function. At a retail or service counter the salesperson is the focal point of the company's strategy and is the firm to the customer. Post-purchase communication A company must anticipate that some customers will encounter either minor or serious problems after purchasing. If the firm is not ready to hear and correct these difficulties, the customer may not repurchase  or may cancel the the relationship. Whether company or customer is at fault, standby post-purchase activities can be instrumental in saving these customers.

17 Comments

  1. weralwolf December 4, 2009 at 3:55 am

    Dear Author loyaltyandcustomers.com !
    Radically the incorrect information

  2. MemoriesJackson December 25, 2009 at 12:45 pm

    I want to quote your post in my blog. It can?
    And you et an account on Twitter?

  3. Chintan Bharwada December 29, 2009 at 6:28 am

    Hi Weralwolf, dont know what you men by radically incorrect info…. i have read various books and articles relating to this. And the post is also based from my professional experience.

    Txs, c

  4. Chintan Bharwada December 29, 2009 at 6:30 am

    Hi MemoriesJackson, yes you certainly ues my post on your blog. would be nice if you could reference it.

    Txs, c

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  7. Mariann Stepanek May 6, 2010 at 7:12 pm

    I don’t usually reply to posts but I will in this case. WoW :)

  8. Chintan Bharwada May 14, 2010 at 5:42 am

    Post Edited: Marketing Mix for Retaining Customers http://loyaltyandcustomers.com/2009/11/marketing-mix-for-retaining-customers/

  9. Mitzie Nolda May 14, 2010 at 3:16 pm

    Awesome post! I’ve been trying to come up with a good internet business idea for a while. Instead, I have come up with a great non-internet business idea, which kind of sucks in a way because this idea requires a lot of money, as opposed to a full internet-based business that might not require that much to get it started. I’m not giving up though. I recently started a blog where I plan to document my steps for starting my company. I figured it would keep me motivated and force me to keep at it. I also hope it will motivate the readers to keep trying to accomplish their goals. By the way, I love your site. I’ll be adding it to my list of interesting blogs.

  10. Ike Furay June 16, 2010 at 10:43 pm

    great tips. maybe i have done half or 3/4 of this

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