According to research by Frederick Reichheld denmark number for whatsapp of Bain & Company, increasing retention rates by 5% increases profits by 25% to 95%.
Another statistic, this time conducted by Marketing Sherpa in 2016 that should make us reflect is that 80% of qualified traffic of an e-commerce does not convert into a sale due to a lack of lead nurturing . It follows that the acquisition phase is not followed by any strategy of activation and retention of the contact.
Especially for small and medium-sized businesses, my advice is to optimize existing business processes, for example through the use of marketing automation and highly personalized messages, instead of focusing only on lead generation.
Marketing retention techniques first of all involve reducing the churn rate , bringing it towards 0%.
Drawing a parallel with email marketing, the rate of unsubscriptions from your newsletter is the churn you need to work on.
You can also work in the opposite direction, that is, by implementing strategies that increase the percentage of active contacts in the database, bringing it towards 100%.
Database Churn Rate
To calculate the percentage of abandonment or unsubscription you need to have a history of the database because it will be necessary to divide the number of members who unsubscribe by the total number of members at the beginning of the period taken into consideration such as a month, six months or a year.