You just bought a new smartwatch after weeks of obsessive research. You compared competitors, read reviews, hunted for deals, and finally pulled the trigger. But a few days later, you get an ad for the same watch you just purchased. You’re annoyed: Why am I being marketed something I already own?
Now imagine that instead of being served ads shortly after purchasing the watch, you get a personalized email sequence with video tutorials on your new watch’s features. One email includes newly released watch straps, one of which you buy.
In the first scenario, the company uses a catch-all marketing strategy; the second scenario uses customer marketing to retain and upsell based on a unique customer journey. Here’s what customer marketing is, its benefits, and six customer-driven marketing strategies to turn regular customers into loyalists.
What is customer marketing?
Customer marketing is a strategy that leverages existing customer relationships to improve retention, increase lifetime value, and turn them into brand advocates. While traditional marketing focuses on attracting new customers, customer marketing focuses on nurturing and retaining your existing customer base.
Customer marketing tactics include personalized communication, loyalty programs, referral incentives, and customer feedback loops (continuously gathering and acting on customer feedback). These can lead to repeat purchases, upgrades, or word-of-mouth referrals.
4 benefits of customer marketing
- Improved retention
- Increased customer lifetime value
- Stronger brand advocacy
- Enhanced customer satisfaction
Effective customer marketing can help you make more revenue from your existing customer base. Here are four ways it achieves this:
1. Improved retention
The customer journey doesn’t end with a purchase. Targeted customer marketing efforts keep current customers engaged with your brand, leading to a higher customer retention rate. Customer retention is your ability to keep customers returning over time instead of switching to a competitor. By some estimates, acquiring new customers can cost five to seven times more than retaining them, and just a 5% boost in retention can increase profits by 25% to 95%.
2. Increased customer lifetime value
Engaging with existing customers and building strong relationships is at the core of a successful customer marketing strategy. When customers feel connected to your brand, they’re more likely to come back. This is especially crucial for small businesses, which generate 35% of their revenue from their top 5% of customers.
3. Stronger brand advocacy
Chances are, you’ve recommended your favorite products to friends or posted about them on social media. Loyal customers share their positive experiences with others, bringing in new customers for free. With the average customer acquisition cost ranging from $21 to $377 (depending on the industry), a new customer acquired through word of mouth is invaluable.
Customer marketing can help make the most of these positive experiences. You might request reviews, create surprise-and-delight experiences (like free inserts in shipments), or remind customers to post and engage on social media.
4. Enhanced customer satisfaction
Good customer marketing isn’t just marketing to the right person at the right time; it tries to increase existing customer satisfaction by tailoring marketing efforts to their specific needs and preferences. Highly personalized marketing makes customers feel valued and seen, deepening their engagement with your brand.
It’s also about knowing when not to reach the customer—like when they’ve already purchased an item. Use customer data to ensure no one gets ads and emails for products they already own.
Period care company August, which has built a base of evangelists through thoughtful market research and customer feedback, takes customer satisfaction so seriously it’s willing to push launch timelines. “We really prioritize building community,” founder Nadya Okamoto says on the Shopify Masters podcast, “[We prioritize our community] to the point that we could be flexible on timing if it was in service of better understanding and being thoughtful about our growth.”
6 customer marketing strategies
- Cross-sell via email
- Curate a newsletter-first content strategy
- Run contests and challenges
- Arrange exclusive community events
- Implement loyalty programs
- Take customer feedback seriously
The best customer marketing strategies engage and connect with existing customers. Here are six ways to do that:
1. Cross-sell via email
Remember that smartwatch strap you bought? That was an example of cross-selling—marketing adjacent products to a customer—something that can substantially increase your customer lifetime value. (When done over email, this number can be even higher, as email marketing has an ROI of $31 on average for every $1 spent.)
To cross-sell effectively, identify complementary products or services that address related needs. Then, segment customers according to their purchase and deliver relevant emails offering these complementary products. Shopify integrates with many email service providers (ESP) to automate this.
Examples of cross-selling include:
- Recommending socks after a shoe purchase
- Suggesting helmets following a bike purchase
- Offering matching tops with a jeans purchase
2. Curate a newsletter-first content strategy
Unlike social media, which relies on algorithms for reach, your email list gives you direct access to customers. A newsletter-first approach to your content strategy lets you curate content for specific customers to drive consistent, meaningful engagement. And since subscribers opt into your emails, you may see more engagement than other channels, like a blog.
Start by analyzing your customers’ demographics and psychographics to identify content preferences. Develop a content calendar based on these interests, aligning it with your goals, product launches, and events. Use dynamic content to personalize call,-to-action based on previous purchase history.
For example, a clothing store might create a summer-themed “vacation edit” email during the summer, linking to relevant blog content, collections, and products.
3. Run contests and challenges
People love to feel involved in something big. Contests and challenges encourage customers to interact with your brand in a fun and engaging way. Because challenges often span weeks or months, they foster consistent engagement. They’re also a good way to gather and post user-generated content, showcasing customer loyalty.
Incentivizing challenges can result in customers feeling even more appreciated, boosting loyalty. For example, if you sell sports apparel and equipment, you could run a 30-day fitness challenge, asking customers to post their daily workout and tag your company. In return, they’re entered to win prizes and unlock discounts the further they get into the challenge. Your marketing team could then reshare this content on your socials and by email to showcase engagement and cross-sell workout clothes.
4. Arrange exclusive community events
Exclusive community events unite customers and express appreciation. Exceptional customer experiences leave lasting impressions, fostering loyalty and positive sentiment. Examples include:
- Running a sale only for those on your mailing list
- Holding a workshop to teach customers how to use your products
- Hosting a cocktail party for top customers with a guest influencer in your industry
Monitor participation and attendance during the event, and send out a feedback survey afterward to measure your success.
5. Implement loyalty programs
Loyalty programs reward customers for their ongoing commitment to your brand, encouraging repeat purchases and long-term engagement. These programs can help reduce customer churn rate by motivating customers to choose you over competitors to reach reward tiers.
Customer loyalty programs can also encourage referrals, social media engagement, and other desired actions. For example, luggage company Monos gives customers points on purchases, referrals, and social media follows, which can be redeemed for discounts. The company has generated $8 million in related revenue since implementing its loyalty program.
To set up a loyalty or referral program, add a Shopify app like Smile, Joy, or Loyalty Lion to your ecommerce store.
6. Take customer feedback seriously
Gather feedback through social media, surveys, customer support, and reviews. When customers share their thoughts, show you’re listening by acting on their honest feedback. Focus on actionable insights, prioritize key issues, and implement changes. Then, update customers about how their feedback has led to improvements. This approach shows customers they’re valued, strengthening your relationship.
For example, ecommerce clothing company Lulus sets up pop-up shops to engage with customers in person, collect feedback for improvements, and mine customer communities to understand geographical demand. On the Shopify Masters podcast, CEO Crystal Landsem talks about surveying the company’s target customers: “Let’s get her feedback. Let’s have focus groups, talk to her about what she wants and what she doesn’t want.”
Customer marketing FAQ
What is the goal of customer marketing?
The goal of customer marketing is to engage with existing customers to improve retention, brand loyalty, and customer advocacy.
What is a customer marketing strategy?
A customer marketing strategy is how you nurture your relationship with customers. The goal is to grow customer lifetime value and deliver a personal, consistent experience.
What is the difference between customer marketing and product marketing?
Customer marketing focuses on existing customers, aiming to build and nurture long-term relationships. Product marketing focuses on bringing a product to market and promoting it to potential customers.
