I'll talk about retention and how to improve it to bring back as often as possible users about your product. I will mostly talk about the subscription offers and we will see different techniques to a subscriber else for several months or several years in some cases.
What is the retention rate?
The retention rate takes into account the lifetime of a customer. Concretely, this is to ensure that customers use as much as possible your product. In the case of a subscription offer, the goal is that customers are paying subscribers and as long as possible.
What is the retention rate?
The retention rate takes into account the lifetime of a customer. Concretely, this is to ensure that customers use as much as possible your product. In the case of a subscription offer, the goal is that customers are paying subscribers and as long as possible.
When talking about online business, the most common topics are traffic acquisition and conversion. So how to acquire targeted visitors and how to transform a maximum of them into leads and clients. But the retention rate should be taken into account before the other two elements. Because, if you manage to keep a registered user for 12 months, you need 12 times less traffic for the same turnover.
But that's not all. When you know you are a good retention rate, you know exactly how much you make on a client. So you can invest in advertising because you know your income per visitor, per lead and per customer!
For example, if you sell a product at 30 dollars per month and you know that an average customer remains subscribed 4 months, your revenue per customer is 120 dollars. Next, we must of course know your conversion rate as other visitors and prospects. When you have all this information in hand, you can for example invest wisely because you know a prospect should not cost more than 15 dollars ...
The problem with most companies with retention
The problem with most companies is that they do not know their metrics. She did not know their income per visitor, per lead and even less per customer. Because of this, they lose money when launching marketing campaigns to acquire traffic.
The other problem is that they are betting their entire budget on acquiring traffic at the expense of their clients. This is what I call the mobile operators syndrome)
I know a company that nearly one million prospects base. This company has invested millions of dollars in advertising, including on TV to get new members. She sells content-based subscriptions. Basically, members pay to have fresh and regular content. However, the company did not create new content for 3 years so its retention rate is catastrophic. I do not even talk about its open rates and clicks when sending emails.
Finally, the company will surely put the key under the door by the end of the year.
It is imperative to work your retention rate. On the one hand your customers will earn you more but they will also recommend to other potential customers. If you have a good retention rate, your customers become your best ambassadors!
How to increase the retention rate?
There are lots of ways to increase your retention rate but the priority is to have a good product. You can have the best marketing world, if your product is bad, your business will not last. I have prepared three months of content. And then I planned to spend 15 hours a week to create new ones. My challenge is that my customers are subscribers eight months on average.
I have already prepared 12 hours of video training, I recorded audio, I created 4 Premium newsletters and I started to write a book.
But that's not all. When you know you are a good retention rate, you know exactly how much you make on a client. So you can invest in advertising because you know your income per visitor, per lead and per customer!
For example, if you sell a product at 30 dollars per month and you know that an average customer remains subscribed 4 months, your revenue per customer is 120 dollars. Next, we must of course know your conversion rate as other visitors and prospects. When you have all this information in hand, you can for example invest wisely because you know a prospect should not cost more than 15 dollars ...
The problem with most companies with retention
The problem with most companies is that they do not know their metrics. She did not know their income per visitor, per lead and even less per customer. Because of this, they lose money when launching marketing campaigns to acquire traffic.
The other problem is that they are betting their entire budget on acquiring traffic at the expense of their clients. This is what I call the mobile operators syndrome)
I know a company that nearly one million prospects base. This company has invested millions of dollars in advertising, including on TV to get new members. She sells content-based subscriptions. Basically, members pay to have fresh and regular content. However, the company did not create new content for 3 years so its retention rate is catastrophic. I do not even talk about its open rates and clicks when sending emails.
Finally, the company will surely put the key under the door by the end of the year.
It is imperative to work your retention rate. On the one hand your customers will earn you more but they will also recommend to other potential customers. If you have a good retention rate, your customers become your best ambassadors!
How to increase the retention rate?
There are lots of ways to increase your retention rate but the priority is to have a good product. You can have the best marketing world, if your product is bad, your business will not last. I have prepared three months of content. And then I planned to spend 15 hours a week to create new ones. My challenge is that my customers are subscribers eight months on average.
I have already prepared 12 hours of video training, I recorded audio, I created 4 Premium newsletters and I started to write a book.
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