“I run a start-up, and I noticed this unapologetic behavior where I’m always looking for new clients,” says an SMB owner.
This is a usual fact that I stated above. It’s also an uncanny loop for big business owners—always on the run to acquire new customers. The habit of onboarding more customers for SaaS companies means more earning profit but eventually leads them to a one-way route. Having new customers is awesome, but it’s equally important to cherish your existing customers with satisfactory services. They can be an asset and a hotspot for good words and referrals.
One way to balance this never-ending cycle is to keep acquiring and existing customers on the same shelf by opting for customer marketing. Where both can co-exist without compromising on profits and customer churn, and that magical cure is Customer Marketing.
In this blog, we’ll explore the terms customer marketing and customer success, wherein the role of each and how an organization can unleash a great strategy.
Let’s understand first,
What is Customer Marketing?
Customer marketing is a repetitive practice to keep the existing customer happy and content by marketing strategies, upselling, offers/discounts, lifetime deals, and other approachable tactics in power to retain a customer.
Customer marketing aims to ensure that customers feel valued and appreciated and continue to use and advocate for your products or services over time. This can involve a variety of tactics, such as upselling and cross-selling existing customers, offering loyalty rewards or referral programs, providing personalized and relevant content, and delivering exceptional customer service and support.
A Fair Comparison: What Binds Customer Success and Customer Marketing Together?
Customer Success is all about ensuring that your customers achieve their desired outcomes while using your product or service. It’s like coaching your customers, helping them navigate any challenges they may face while using your product, and making sure they’re getting the most out of it. A great example of customer success would be a company like Peloton, which sells high-end exercise equipment and provides personal trainers and a community of like-minded people to help their customers achieve their fitness goals.
On the other hand, Customer Marketing is about building relationships with your customers and encouraging them to advocate for your brand. This involves creating targeted marketing campaigns and providing your customers with valuable content that speaks to their interests and needs. A great example of customer marketing would be a company like Sephora, which not only sells makeup and beauty products but also provides its customers with tutorials, personalized recommendations, and even free samples to keep them engaged and excited about its brand.
These two concepts seem quite different, but they work hand-in-hand to create a successful business. By providing exceptional customer success, you can build strong relationships with your customers, leading to increased loyalty and advocacy. And by engaging in effective customer marketing, you can keep your customers interested and excited about your brand, which can lead to increased sales and growth.
So, whether you’re a small business owner or a big-shot CEO, it’s important to remember that customer success and customer marketing are both crucial components of a successful saas business. So go out there and help your customers achieve their goals while also providing them with a delightful experience that will keep them coming back for more. And don’t forget to sprinkle in a little bit of fun and quirkiness along the way – after all, happy customers are the best customers!
Why Is Customer Marketing Vital For SaaS companies?
SaaS companies are very competitive in nature. In fact, the SaaS world is growing and capturing funding in 2023 like never before– innovation has taken the highway!
Customer marketing is all about building relationships with your customers and keeping them engaged with your brand. And for SaaS companies, this is especially important. Why you ask? Well, SaaS companies often operate on a subscription-based model, which means that their customers can cancel their subscriptions at any time. This makes it essential for SaaS companies to keep their customers happy and engaged, so they’ll continue using the product and renewing their subscriptions.
A capable product just won’t bring you money; it’s also about building strong relationships with your customers, who will give you constructive feedback and would love to use your product. When your existing customers are happy and engaged, they are likelier to recommend your product or service to their friends and colleagues. And as we all know, word-of-mouth marketing is one of the most powerful forms of marketing.
Who Is Responsible for Customer Marketing?
When it comes to customer marketing, the responsibility falls on a team of professionals within a company. Typically, this team comprises individuals from various departments, including marketing, sales, customer success, and product development.
Customer marketing aims to retain existing customers and encourage them to continue purchasing from a company while increasing their overall lifetime value. This can be accomplished through various strategies, including targeted promotions, loyalty programs, personalized communication, and exceptional customer service. In the retail industry, customer marketing is essential for building brand loyalty and encouraging repeat purchases.
In the software industry, customer marketing is crucial in retaining and encouraging customers to upgrade to more advanced products or services. For example, Adobe offers a range of subscription-based products that cater to different customer needs. By regularly communicating with its customers and providing targeted offers and promotions, Adobe is able to encourage them to upgrade to more advanced products, increasing their lifetime value to the company.
Overall, customer marketing is a collaborative effort that requires input from multiple departments within a company. By prioritizing customer satisfaction and loyalty, companies can build a strong brand reputation and increase their bottom line.
4 Best Practices For Customer Marketing
Customer marketing is a critical aspect of any business that wants to grow and retain its customer base. It involves creating and executing strategies that aim to engage customers and increase their loyalty to the brand. In this section of the article, we’ll discuss four best practices for customer marketing and provide examples, quotations, infographics, and statistics to help illustrate each point.
1. Personalize your customer communication
Personalization is essential in customer marketing. Customers want to feel like they are not just another number in a database. According to a study by Epsilon, personalized emails have an open rate 29% higher than non-personalized ones. One way to personalize your communication is by using the customer’s name.
“As a company, we’ve found that using the customer’s name in our email communication has been highly effective in increasing customer engagement. It makes them feel valued and shows that we care about them as individuals.” – John Smith, Marketing Director.
Another way to personalize your communication is by sending targeted messages based on the customer’s interests, behavior, or demographics. This technique is known as customer segmentation. According to a study by MailChimp, segmented email campaigns have an open rate of 14.32% higher than non-segmented ones.
2. Use customer feedback to improve your products and services
Customer feedback is a valuable resource that can help you improve your products and services. By listening to your customers, you can identify and address their pain points. This can lead to higher customer satisfaction and loyalty. According to a study by Qualtrics, 77% of customers would recommend a brand to a friend after having a positive experience.
“We make it a point to gather feedback from our customers regularly. It allows us to identify areas where we can improve and make necessary changes. Our customers appreciate that we listen to them, and it helps us build trust with them.” – Jane Doe, Customer Marketing Expert
3. Reward your loyal customers
Rewarding your loyal customers is a great way to show them that you appreciate their business. It can also encourage them to continue doing business with you. According to a study by Bond, customers who participate in loyalty programs are 69% more likely to recommend the brand to others.
“We have a loyalty program that rewards our customers for their purchases. It has been highly effective in increasing customer retention and word-of-mouth referrals. Our customers appreciate the rewards, and it keeps them coming back to us.” – Sarah Johnson, Marketing Manager at DEF Company.
4. Provide exceptional customer service
Providing exceptional customer service is critical to customer marketing. Customers who have a positive experience with a brand are more likely to become repeat customers and recommend the brand to others. According to a study by HubSpot, 93% of customers are likely to make repeat purchases from companies with excellent customer service.
“We prioritize providing exceptional customer service in all our interactions with our customers. We train our employees to be empathetic, patient, and responsive to their needs. It has resulted in high customer satisfaction and loyalty.” – Mike Brown, Customer Service Manager at GHI Company.
Implementing these practices can create a positive customer experience and increase your bottom line.
Customer Marketing Tactics
Customer marketing tactics are the various strategies that companies use to promote their products or services and retain their existing customer base. Some common tactics include personalized marketing, referral programs, loyalty programs, and social media marketing. Let’s look at some proven tactics and examples:
This tactic involves tailoring marketing messages to specific customers based on their preferences and behavior. Personalized marketing can take many forms, such as personalized emails, product recommendations, or targeted ads. By providing personalized experiences, companies can improve customer engagement and retention.
Example: Netflix’s recommendation algorithm is a great example of personalized marketing. The platform uses customer data to suggest shows and movies the customer will likely enjoy. This makes the customer feel understood and valued, which helps to improve retention rates.
Referral programs encourage existing customers to refer their friends and family to a business in exchange for rewards. This tactic leverages the power of word-of-mouth marketing to acquire new customers at a low cost.
Example: Dropbox’s referral program is a classic example of a successful referral program. The company offered additional storage space to customers who referred new users to the platform. This led to a significant increase in customer acquisition and helped Dropbox to become a household name.
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Loyalty programs reward customers for their repeat business and encourage them to continue purchasing from a particular company. These programs can take many forms, such as points systems, exclusive discounts, or free products.
Example: Starbucks’ rewards program is a great example of a loyalty program. The program offers customers points for every purchase, which can be redeemed for free drinks, food, or merchandise. This has helped to build a community of loyal customers who continue to choose Starbucks over its competitors.
Social Media Marketing
Social media marketing involves promoting products or services on social media platforms. This tactic can help companies to reach a large audience and engage with customers in real time.
Example: Netflix’s social media presence is a great example of effective social media marketing. The company uses platforms like Twitter and Instagram to promote new shows and interact with customers. By engaging with customers on social media, Netflix has built a loyal fan base that awaits new releases.
At Churn360, staying connected with our customers is key to building strong relationships. That’s why our Customer Success team periodically contacts customers for routine check-ins. We also send out regular email communications that are packed with useful information, such as:
- Monthly newsletters
- Product updates and releases
- Industry news and trends
- Performance tips and tricks
And that’s not all! We also hold exclusive customer webinars monthly, sharing tailored content designed to help our customers succeed. During these webinars, customers can ask questions and get personalized advice from our experts.
We’re committed to keeping our customers in the loop and providing them with the resources they need to achieve their goals. We can build lasting partnerships that benefit everyone involved by staying engaged with our customers.
Book a demo today!