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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

Few tools have the ability to make a lasting impression on customers in the way that video does. Whether you’re providing a useful step-by-step tutorial to educate your audience, sharing about a recent community outreach that your company participated in, or outlining a new product or service, a video is more engaging and memorable than written text. Like other marketing tools, video marketing can be tailored to meet specific needs at specific times. Here are some things to keep in mind as you create the videos your business needs for every stage of the marketing funnel.

Stage 1: Awareness

In the first stage of the marketing funnel, your objective is to create awareness not only of your brand’s existence but also of its mission, its personality, and the value that it adds to customers’ lives. You can do this through video by pinpointing the issues that your target market is faced with and the solutions that your company provides. In this stage, let common search terms be your guide; this will land you higher up on SERPs while creating content that will be relevant to your target customers. Social media platforms provide an ideal place for sharing videos that build awareness, as the platforms make videos easy to publish and share.

Stage 2: Consideration

In the second stage of the marketing funnel, educating customers is the name of the game. At this point, your target customer has at least some understanding of what your brand is all about. Now, you want to guide them through the decision-making process, showing them how the solutions you provide are an ideal fit for the need that they have. Publish videos that focus on providing information on topics that are important to both you and your target market. Your main objective is to keep them interested and engaged with your content, so make sure your videos short, sweet, and to the point.

Stage 3: Conversion

The third stage of the marketing funnel is where the final decision takes place. You’ve guided your target customer through your brand’s story, their own needs, and the value you provide, and now it’s time for them to make a decision. At this stage, your focus should be on video content that appeals to the emotions. Your customer is thinking beyond the generic, “What does this brand do for others?” to the more personal “What could this brand do for me?” So, who or what sets your brand apart from similar companies with similar offerings? Why is your brand in a unique position to fill a need?

Stage 4: Retention

The final and often overlooked stage of the marketing funnel is retention. Your customers have already jumped on board, and now it’s time to keep them on board. Keep these customers active and engaged by educating them on new products or services you offer, new ways for them to be successful, and how your brand provides value over time.

Video content is a highly effective way to engage customers every step of the way, from their first interaction with your brand through the final retention stage. By integrating video into your marketing strategy, you can improve your customers’ journey through the marketing funnel while improving your bottom line.


Posted in: Video Marketing