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Customer retention is critical to the long term health of every business. Maintaining a stable customer base increases revenue and decreases costs. Incorporating video into your customer retention plan is one strategy that has proven benefits for both you and your customers.

Economics of Losing Customers

According to one study, repeat, loyal customers make up roughly 70% of all revenue for the average business. Furthermore, the cost of retaining a customer is usually roughly 1/5th the cost of obtaining a new customer. That is a remarkably good value to cost ratio.

What Makes You Lose Customers?

The main reason that businesses lose customers is because a customer has a bad interaction with that business. This could be a bad interaction with your staff, but more likely it is a bad interaction with your product.

Bad interactions don’t just happen because a product is poorly designed or has some kind of flaw. Many bad interactions occur because customers simply don’t fully understand how to best use the product for maximum value. Thus, it is critical that any customer retention plan involves customer outreach that helps customers get the most value from their product.

How to Incorporate Video into Customer Retention

Videos offer a simple and engaging way to show customers how to get the maximum value from your product. The best videos for supporting customer retention focus on the “hidden value” in your product. For example, you can make a video that shows how to use your product in an a way that most customers might not think to use it. This adds new life to your product. Similarly, a video that shows precisely how your customer can save money using your product and details exactly how big those savings are, will increase the perceived value of your product. Both approaches create a positive interaction and increase the likelihood of retaining a customer.

Long Term Benefits of Customer Loyalty

Customer loyalty has cascading benefits. Many people are likely to switch brands when they see others leaving that brand. Similarly, when people are remaining loyal to your brand, you benefit from word of mouth advertising and may find your customer base expanding. This means that your videos aren’t just influencing the customer that watched them. They also have influence on customers and potential customers who didn’t, increasing the value of this tool on your revenue.


Posted in: Online Videos, Video Marketing, Video Production Tips

Who is your buyer? With video marketing becoming more prevalent and effective in terms of marketing, companies must pay closer attention to who they are marketing to. The buyer persona is the representation of your ideal or most likely customer. To define who this is, a wide range of data must be considered. The goal is to determine who is most likely to buy your product. When you do, you then can create ads to your business.

When you target ads at your most likely buyer, it is possible to increase sales. Your marketing ROI is better because you are reaching more of the people most likely to buy from you. The question is, how do you define and use that buyer persona to achieve these goals?

Gathering Data Is Essential

The goal first is to determine who is the target market or buyer persona. A wide range of data can help with this, including information about who is buying your product now, why or when they are, and how they do so. You also want to consider more than just demographics. For example, where are they learning about or seeking information about your company? You want to know what type of technology they are using, too.

Once that data is in hand, it is then possible to develop videos that either portray that buyer or work to attract those people to your product. When you do this, you can achieve significant growth within your business.

What You Can See Happen

Video is an excellent way to use your buyer persona for the best possible outcome. The reason is simple – it is visual. When people can see others like this or when they can interact with stories and messages that they respond to, they are more likely to buy from you. The benefits may include the following:

  • More people will click on your ads and videos. Some studies report that click through rates using video like this can increase by as much as 300 percent.
  • Your customers are more likely to take action after watching your video. They identify with the person they see and, as a result, are more willing to buy.
  • They may buy more because they feel more comfortable with you and your product. When your video allows them to relate to them, they end up more willing to spend.

The key here is identifying your buyer persona, developing video to attract them, and then being ready to deliver. You should keep this persona as part of your brand, which means all segments of your marketing campaign should focus on it. When you achieve this, you see your company’s growth occur. You see more sales. And, you develop more followers who know and trust your brand.


Posted in: Getting Ideas, Making Decisions