New Media Retention Marketing
In today’s recession-based economy organizations are making a drastic change away from mass (acquisition) marketing toward retention marketing. On the consumer side, potential prospects are reeling in their spending and sliding down the long tail by finding exactly what they want, when they want it, and for the price they want to pay. With acquisition marketing getting more expensive and less effective (see Zain Raj’s piece on markeing focus ), retention is where businesses are headed, and New Media is the tool.
Some agencies simply dismiss New Media or worse, think of it as just another piece of CRM. They couldn’t be more wrong. CRM is all about "managing" the relationship, and I just told you consumers don’t want to be managed anymore. New Media is is about cultivating the relationship, not exploiting it. Give the consumer a reason to follow you on Twitter, join your Facebook friend list, or subscribe to your blog and that relationship will be be worth more over a lifetime than 100 new acquisitions. One client I have gets over a 75% click through rate on their newsletters because consumers want to know more about what they have to offer.
Why? New Media Marketing is designed around the concept of giving the customer what they want. It’s about opt-in marketing. No, not the kind of opt-in marketing where you default the check-box at the bottom of your form. I’m talking about true opt-in marketing — permission marketing. First, customers find you, possibly through a friend or colleague who recommended you (maybe posted your link on Facebook or twitter). Next, they research you. They check your history (the Internet never forgets), see what you’ve done, and see if they like it. And, finally, they make their own decision as to whether or not you’re worth their precious and fleeting time. If you’re lucky enough and you’ve got enough to offer you’ve made a friend.
Now it’s time to cultivate (not manage) the relationship. One colleague of mine follows over 150 people on Twitter and has real-time text notification of Facebook status updates sent to his iPhone via SMS. If you try to manage your relationship with someone like him for your own benefit you can bet he won’t hesitate to not only cut you off, but also spread the word to the 150 people that are following him. Remember, you exist to provide value to the consumer, not the other way around. If you can do this profitably, then you have their permission to cultivate the relationship.
The bottom line. Provide value, retain customers.