Retention marketing drives an increase in purchase frequency (how often a typical customer buys) and repeat purchase rate (likelihood a shopper returns).
A boost to these two metrics means that you are increasing the customer lifetime value (CLV) which leads to long term profitability, rather than short term acquisition gains.
What is Retention Marketing?
Retention marketing is a new form of marketing that is becoming more and more prevalent in the ecommerce world. The focus of this school of marketing is to create engaged customers that return to your store to shop again. It is a shift in focusing only on the acquisition of countless new customers, to also focusing on the profitability of those you already have! The activities a store uses to increase the likelihood of a customer purchasing again, while focusing on increasing the profitability of each repeat purchase.
Will retention marketing ever become the only way you market your store? No! You will still need to use traditional digital marketing to first acquire customers, but you can increase your ROI from those channels by getting them to shop with you more often.