Customer loyalty is critical to the long-term success of every business. A once-off customer is good, but a returning customer is great. So how do you entice a customer to repurchase? Personalized video is one of the best marketing tools for businesses. Video marketing can turn customers into brand advocates, with customer retention being even more important as it demonstrates if your customers are satisfied.
This blog will provide you and your business with everything you need to know about how to increase your customer retention rate using personalized video, including some useful tips on how to create your very own personalized video using our online video editor.
Why does customer retention matter for your business?
Customer retention definition
3 ways video increases customer retention
Customer retention Examples
Why does customer retention matter for your business?
It is extremely important for any growing company to implement a customer retention strategy. It measures how successful your business is at acquiring new customers, but more importantly how successful you are at satisfying existing customers. You want to ensure customers you currently have to stay loyal to your business, have a great customer experience, and continue to find value in your products.
Shopify defines customer retention to be a collection of different activities your business uses to increase the number of repeat customers and the profitability of each existing customer. In short, your business's ability to retain customers over time.
Retaining existing customers can be more cost-effective in most cases rather than searching for new ones. It’s likely that existing clients and customers spend more money, buy more often and refer friends to your store. Studies show that increasing customer retention by a tiny 5% can boost profits dramatically by 25-95%. Existing customers are 50% more likely to buy from you again and spend 31% more than new customers.
Small businesses and creators should be focused on customer retention rates as it’s one of the most affordable marketing strategies. Sourcing new customers can be 5-25 times more expensive.
So why does customer retention matter to your small business? Let’s break it down:
It’s cost-efficient: new customers are 5 - 25 times more expensive,
Brings return on investment: increasing customer retention leads to larger company revenue,
Creates loyal customers: returning customers buy more often and refer friends and family,
Adds uniqueness: your company will stand out from the other generic video marketing campaigns.
3 ways videos increase customer retention
Video is the most successful type of media marketing with 64% of consumers admitting to making a purchase after they view a video promotion.
Engaged customers spend 60% more time on each transaction and purchase a massive 90% more!
1. Personalized Video in Marketing Emails
If you’re losing customers, you should try to personalize their experience and target your marketing strategy towards your existing customer database. Remind your loyal customers why they purchased from you in the first place and how your brand benefits them. Creating a personalized video and sending via email represents their customer value to your brand. Show customers how special they are and that you care about them.
You can personalize your short video with the customers name and their duration with your company, along with a strong call-to-action to your website, particular product or service.
It can even be as easy as sending a welcome message via email. Welcome emails have an average open rate of 50-60%.
2. Customer Service with Videos
Customers love human interaction when it comes to businesses. An automated robot simply just does not cut it. Videos can potentially “humanize” your business. Giving your brand a face is a great way to gain customer trust, loyalty and leave a lasting impression.
Provide customers with personalized videos from your business owners and managers. Talk about the story behind your business, explore your roots and even share a behind-the-scenes of product development.
Have the video live on your homepage or place it within your ‘about us’ page. The stronger connection your business has with your customers and the better customer support you offer, the more they will trust and repurchase.
3. Educate Customers with Videos
It is so easy for businesses to get their message across when using video. From cosmetic companies to home appliances, product demonstrations are perfect for users who want to learn more about a specific product or tool. With both audio and visual aspects, customers can easily learn about your brand just by watching a short video on their smartphone or electronic device.
Focus on giving your customers valuable resources and make their online experience worthwhile. By empowering customers through education, you are creating a positive customer experience. That leads to further customer loyalty and increasing customer retention.
Customer Retention Examples
Most of us are bombarded with hundreds of marketing emails every day. It’s easier to bulk delete then read each one. It’s vital for your business to stand out, keep your audience engaged and build memorable relationships so you don’t end up in the trash can.
58% of consumers admitted to wanting a personalized experience when purchasing from a company. However, most marketers don’t go beyond inserting a customer's first name into an email. Here are two of our favorite personalized customer retention video examples and a bonus testimonial:
1. Barclay's Personalized Video
Barclay’s created this memorable yet personalized video email campaign, taking a straightforward approach. The video aims to create a closer connection between brand and consumer directly. Barclays' says their name throughout the video and shows actual figures for how much the consumer can borrow over how long. It’s important to speak directly to them, as this example shows.
The video also helps the viewer envision the life they desire. By showing the car and house they could potentially own really emphasizes the benefits of the campaign's offer. There is a clear call-to-action at the end.
2. Cadbury's Personalized Video
Cadbury has successfully made a heart-warming and relatable personalized video. This video has been personally made for George. As the viewer, we see “our” hands taking objects from around the house and placing them into a keepsake box. Pulling on our emotional heart strings, this video works very well. Cadbury specially set up a campaign for customers to generate their own personalized video.
All they need to do is log into Facebook to integrate their name, photos and a special person in their life. This unique mix of personalization and interactivity leads to an emotionally resonant video for viewers.
3. Slack's Client Testimonial Video
Returning customers are likely to refer your product or company to friends and family. Peer recommendation isn’t exactly the most traditional form of personalized videos, but it certainly will benefit customer retention rates.
When happy customers talk about their experience with your product or service, it portrays a positive message to the rest of your customers and viewers. Testimonial videos build credibility and trust surrounding your company. This Slack testimonial video is the perfect example of this.
With a mixture of personal elements, emotion and creativity within your personalized videos, video content can add a serious benefit to your customer retention rate. Your business will stand out from the rest while encouraging leads to take customers to the final step of a sale – all this while strengthening existing customer relationships.
Let’s begin making your next personalized video!
If you’re ready to start creating your very own personalized videos for your customers but not sure where to start, head over to our template library! We have thousands of ready to use templates to take the stress out of video creating. Start editing with our free to use online editor directly on your smartphone or desktop. Don’t be afraid to explore all our cool filters and special effects.
Want further information on customer retention using video? Check out our step by step guide on How to Make Customer Testimonial Videos.