The customer journey is no longer a linear path (especially in the B2B world).
Today’s tech-savvy consumers expect a seamless, personalized experience across every touchpoint, from their initial brand awareness to post-purchase interactions.
A recent study by PWC found that 73% of customers say customer experience (CX) influences their purchasing decisions more than advertising. This also highlights the critical role that customer marketing plays in today’s business landscape.
But what exactly is customer marketing?
It is the power to nurture your existing customers in a way that boosts your sales and creates new business opportunities.
In this blog, I will explain customer marketing, its benefits, and how you can implement the right methods to maximize your sales. The post will highlight 8 real-life customer marketing examples and how they were used to improve customer experience and growth.
What is customer marketing?
As the term suggests, the marketing efforts you put into primarily engaging and retaining your existing customer base are known as customer marketing.
Retaining existing customers is more challenging than acquiring new ones. At the same time, you get better profit. The chances of selling to an existing customer are 60-70%, while the chances of selling to a new prospect are only 5% to 20%.
Hence, a good strategy is critical for the overall business success and growth.
A customer marketing strategy aims to upsell or cross-sell to existing customers, build better customer relationships, and retain them for a longer period.
A satisfied customer will likely stay loyal to your service/product and even promote your business free of cost. Amazing! Isn’t it? Now, let’s discuss the benefits of customer marketing.
The benefits of customer marketing
1. Improved customer satisfaction & retention
Satisfied customers are more likely to stick around.
By prioritizing customer needs and addressing concerns promptly, customer marketing creates positive experiences that lead to higher customer satisfaction.
A 5% increase in retention rates can boost profits by a staggering 25-95%. This highlights the financial importance of keeping your customer base happy.
2. Increased brand advocacy
Happy customers will likely become brand advocates and recommend your products/services to others.
A satisfied customer tells at least 6 people about their positive experience, acting as free marketing agents. They also post positive online reviews on authorized sites like G2, Capterra, etc.
Social media mentions and referrals from satisfied customers can boost your brand reputation and credibility, attracting new customers and driving organic growth.
3. Higher customer lifetime value and revenue
Existing customers are not only more likely to repurchase, but they are also more likely to spend more each time they buy.
Studies indicate that repeat customers spend 67% more on average than new customers.
Established customers are familiar with your brand, trust your products or services, and are more responsive to upselling and cross-selling opportunities. With good offers and excellent customer service, you can retain customers longer and increase their lifetime value.
4. Sustainable business growth
Customer marketing focuses on retaining existing customers, which is generally cheaper than acquiring new ones.
It costs businesses 5 to 6 times more to attract a new customer than to retain an existing one.
Beyond cost savings, focusing on customer retention allows you to build stronger relationships with a predictable customer base. This stable foundation provides a springboard for sustainable growth.
Moreover, existing customers are more likely to try new products or services you offer and give you valuable feedback, reducing the risk associated with launching new ventures. Now, let’s discuss some of the best customer marketing strategies you can use.
8 Customer marketing examples for growth
1. Develop rewards and recognition programs for loyal customers
One way to retain customers is by offering them rewards for their loyalty.
A great way to do this is by setting up a tiered loyalty program that rewards customers for their continued engagement with the business. In this program, customers can earn points for their purchases and get exclusive discounts as soon as they join.
As they continue engaging with the business, they can move up the tiers by purchasing more and enjoying even better rewards, like early access to new products, personalized gifts on special occasions, and invitations to exclusive events.
Real-life customer marketing example: Sephora Beauty Insider offers a free tier with birthday gifts and points for purchases, a Silver tier with additional benefits like free shipping and point multipliers, and a Gold tier with exclusive experiences and access to a dedicated beauty advisor.
This way, customers can feel appreciated and valued, while the business can keep them coming back.
2. Set up a personalized communication strategy
A one-size-fits-all marketing strategy doesn’t work anymore.
Segment your customers based on interests, purchase patterns, demographics, or how they utilize your product or service.
This helps you gain insight into their specific needs and preferences, allowing you to customize your messaging to resonate with each group.
Doing so can establish stronger relationships with your customers, boost customer loyalty, and drive higher sales.
Real-life example: Spotify segments users based on listening habits and curates personalized playlists and email recommendations. A customer who listens primarily to classical music will receive different recommendations than one who listens to hip-hop.
This way, your personalized emails and offers will be more relevant and engaging, increasing the likelihood of customers opening and reading them, and ultimately driving conversions or desired actions.
3. Encourage referral and community building
Encouraging customers to refer to your business can be a great way to grow your customer base.
One way to do this is by offering discounts or rewards to both the referrer and the referred customer. This benefits both parties – existing customers are happy to recommend products or services they love, and new customers are likelier to trust a recommendation from someone they know.
You can also create online groups or social media communities where customers can connect, share experiences, and support each other. These communities can be a great way to get feedback and ideas, and they can help build loyalty by creating a sense of belonging among customers.
Real-life example: Dropbox offers bonus storage space for the referrer and the referred user, driving customer acquisition and growth through a referral program. They also maintain an active user forum, allowing users to connect and exchange knowledge.
4. Establish a customer feedback loop
Knowing what your customers think is crucial to keeping them happy. Regular feedback helps you identify what’s working well and what needs improvement.
Make it simple for customers to share their thoughts by offering various communication channels and ensuring they are monitored.
Conduct surveys, hold Q&A sessions following product launches, or integrate a feedback button into your website or app. Ensure that your customers can easily reach a real person in your company if they wish to.
Most importantly, show customers you’re listening by acting based on their input. Offer solutions promptly and remain calm. Remember that getting angry or defensive is the quickest way to lose customers.
Real-life example: Lego constantly collects customer feedback through surveys and user testing sessions. This feedback directly influences future product lines and design decisions, ensuring they continue to meet customer expectations.
5. Organize exclusive offers and events
Reward your loyal customers exclusive access to special discounts, product launches, or members-only events.
Exclusive offers can come in many forms, such as early access to sales or discounts on new products, invitations to members-only events or webinars, or free trials of premium features.
Limited-edition product lines or special bundles can also greatly reward loyal customers and generate excitement. Members-only events can be online or in-person and can offer a variety of benefits, such as product demonstrations, Q&A sessions with industry experts, or networking opportunities with other brand loyalists.
Real-life example: Amazon Prime offers exclusive deals, early access to Lightning Deals, and free one-day shipping for its members. These perks incentivize customers to sign up for Prime, increasing customer lifetime value and driving repeat business.
6. Provide educational content
Create valuable content that helps your customers get the most out of your products or services. This could include blog posts, articles, webinars, tutorials, how-to guides, ebooks, checklists, infographics, or even interactive courses.
By providing informative and engaging content, you establish yourself as a thought leader in your industry, demonstrate the value of your offerings, and empower your customers to succeed.
Educational content can address common customer pain points, practically showcase the features and benefits of your products or services, and even offer tips and tricks to help customers optimize their experience.
Real-life example: GoPro, a manufacturer of action cameras, produces a wealth of educational content, including video editing tutorials, tips on capturing specific types of shots, and inspirational stories from GoPro athletes.
This helps GoPro stand as a thought leader in the action camera space and increase product satisfaction.
7. Increase engagement through contests and interactive content
Make things fun and interactive for your customers!
Run contests, giveaways, or polls encouraging them to play along and engage with your brand. This is a great way to get more people interested in your brand, collect content from your customers (like photos or videos), and learn more about what they like and want.
Real-life example: Starbucks frequently runs social media contests encouraging customers to share photos of their favorite Starbucks drinks or experiences using a branded hashtag.
This increases brand engagement and creates a sense of community among Starbucks fans, and the user-generated content can be repurposed for marketing purposes.
8. Feature real customer stories and testimonials
One effective way to enhance your product or service credibility is to let potential customers hear directly from existing ones.
You can showcase customer stories, testimonials, and reviews on your website, social media platforms, and marketing materials. These experiences can also attract and persuade potential customers to try your product or service, as people tend to trust other people more than shiny ads.
By featuring the success stories of your happy customers, you can highlight the real difference that your product or service has made in their lives.
Real-life example: Dollar Shave Club features humorous customer testimonials in its marketing videos. These testimonials highlight the convenience and affordability of their razors in a relatable and engaging way, resonating with potential customers and driving sales.
Customer marketing – making existing customers the stars of your business
Customer marketing is like a building block for sustainable business growth.
By implementing these eight powerful strategies, you can transform your existing customers into loyal brand advocates who keep coming back for more themselves and spread positive word-of-mouth recommendations that organically attract new customers.
This translates to a double win: increased customer lifetime value through repeat business and reduced customer acquisition costs.
Remember, your most powerful business promoters aren’t the paid affiliates or social media influencers – they’re your happy customers. So, make them feel valued, heard, and appreciated, and in return, you will see a drastic increase in your brand loyalty and customer base.
