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Growth vs Retention
š° Building long term relationships with your customers
MOEMENTUM
This is a Newsletter to boost yours.
Intro
No lemonade, orange soda, or a nice cold shilled glass of water
Instead, I'm here in Boston, surrounded by a cold, gloomy aura thatās completely different from the vibrant energy of Miami.
To help paint the picture, Iām all wrapped up in sweats, hoodies, and extra-thick socks
Moving to places like Miami completely shifted my paradigm.
It made me realize how much our surroundings impact our performance, creativity, and motivation.
If you ever find yourself feeling complacent, stuck, or just plain bored, hereās my advice: Take a trip. Step out of your comfort zone.
Life isnāt just about making a ton of money or flaunting exotic cars. (Though, I gotta say, I love that part for sure.)
It's about experiences, growth, and how we adapt to new environments.
It's about being disciplined with your routine on the road, and staying consistent with your actions when the circumstances change. It's about finding that inner fire no matter where you are.
So boys, I hope this pep talk gives you some fire t crush your day and prepare for a great week ahead!
Now letās talk strategies, specifically Reteniton.
Acquisition Is Growth, Retention Is Profit
I donāt hate dropshipping I just hate the concept
I hate the Gurus who brainwash beginners and make it seem like it is the best business model on earth
I hate how itās all about short-term thinking
I learned this the hard way back in 2017 when I was dropshipping portable blenders that looked like this
When I first started it was great.
Sales were coming in, profit was there and things looked booolish
Then some guy said f*#K dropshipping the blender
Iām going to build a brand that sells it
Within months I was getting dominated and forced to move on to selling another product
5 years after BlendJet has done 10s of millions in revenue, outperformed every drop shipper and dominated the market using the same exact product with a different approach
While I was focused on acquisition they focused on retention.
So let me walk you guys through some of the retention strategies I learned to help me avoid making the same mistake and actually build brands like NZT & Amarose that retain customers and maximize profits
Retention is your key to outlasting competition and building enterprise value
It's easy to get caught up in the acquisition mentality.
More ad spend, more creatives, more revenue..
But here's the twist - retention is where the real profit game is played. It's not about just selling; it's about selling again and again.
Think about it like this
If you only went to McDonaldās once the company wouldnāt have 100 locations in every city
But because they know youāre going to go back they want to make it convenient and easy for you to do
Hereās how we think about the 3 types of customers when we grow brands
New customers: Your job is to make them feel like they've discovered something special.
That first experience? Make it count. Add a postcard with their orders, send a personalized email, or even a free gift youād be surprised how long that can go.
Current Customers: These are your community, your advocates.
Focus on engaging with them as much as possible, best place to do this right now is Instagram broadcast channels or Facebook groups!
āOldā Users: If they bought from you once and you didn't completely butcher it theyāre more than likely to do it again. Understand what pushed them away, address it, and give them a reason to come back.
Now letās talk more in-depth about 3 ways you easily can do this.
1. Customer Engagement
Customer support is soooo overlooked
The first thing I do with every business is make sure my customer support team is ELITE.
Not just for my product, but for my people too.
Go above and beyond for your first 1,000 customers.
Give them refunds, reship lost packages, whatever it is they want get it done.
Why? If your customers feel heard and helped, they stick around. Fast, effective support isn't just good service; it's a great strategy.
Build a customer support team that's not just responsive but empathetic.
2. Build A Loyalty Program
Credit card-style loyalty programs
Ever wonder why people always spend money they donāt have to buy things they donāt need?
Credit cards make it easy for them.
āCashback, member benefits, unlimited bonusesā
These are the words used to describe almost every single credit card, its subconsciously engraved in our brains that the more we spend the more we āget backā
Your brand should do the same, at NZT specifically we built a program that gives our customers unlimited 5% cash back on every order
Simple things like that go along way, find what works for you and do it!
3. Make Them An Offer They Can't Refuse
Nobody buys great products thatāre positioned terribly.
Hereās an example from a brand I love
ClubEarlyBird whatās so unique about this brand is the fact they choose to build offers, the whole strategy is entirely focused on building irresistible offers customers canāt refuse.
You will not find a regular product page, everything is well thought out to build an environment for customers to keep coming back
Instead of just buying the product they come back and buy offers.
So there you have it.
Donāt start an ecom brand to just sell products, start one that focuses on building relationships through products.
Retention isn't just a strategy; it's the strategy.
P.S. If you have more questions about retention or anything else regarding starting or scaling your business? Hit reply. Let's keep this conversation going!
Tweet Of The Week
This is what a MILLION dollar ad looks likeā¦ š„
Copy this for your brand (thread š§µ)
ā Matt Epstein (@MattEpstein16)
6:38 PM ā¢ Nov 6, 2023
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