Engagement is one of the many ways to gauge the success of a digital marketing campaign. But it’s not the only way to measure the effectiveness of your marketing strategy. Many who work in digital marketing have started focusing on retention rates as another measure of success. Retention rate lets you know how well your content is at creating repeat customers. While gaining new customers is always a plus, there is much to be said for creating a brand that has a loyal following.
Calculating retention rate
Growing a brand depends on gaining new customers and keeping those customers. A higher retention rate means that a company is doing the right things to make their customers happy. You can calculate the retention rate as a percentage for a specific time frame by simply subtracting the customers gained from the total number of customers at the end of the time frame. Divide that number by the number of customers at the beginning of the time frame and multiply by 100 to get the percentage. Keeping track of the fluctuation of these numbers over time can help you see what marketing campaigns work best for customer retention.
Increasing retention rate
If you work in digital marketing, you can focus on creating campaigns to increase the retention rate for your client. A high retention rate translates directly to happy customers and brand loyalty, both of which are difficult to achieve in a market that’s ever-changing due to technology. Customer feedback can help you find ways to increase the retention rate. Knowing what makes customers continue to return to your client’s brand can help you implement new marketing strategies that will encourage others to do the same. Don’t ignore negative feedback as it’s often helpful in understanding what changes you can make to your digital marketing campaign to enhance the experience for customers, so they stay loyal to your client.
Measuring retention rate provides insight on how well a brand is at keeping its customers. New customers are important, but brand loyalty is the key to staying successful in many industries. Working in digital marketing means you must find ways to shift your approach using feedback from customers to increase your client’s retention rate and help them maintain their customer base.
