If you’re reading this article there is a possibility that you remember the original roll out of most of the major social media platforms including Facebook, Twitter, and YouTube. The whole original point of this new and dynamic way of communicating was to be more socially connected. The original intention of social media still holds true and effective in its ability to help increase customer retention.
Looking through a macro lens at digital marketing, it appears there is greater emphasis on gaining new customers for businesses across industries. And with the creation of ad campaigns to attract new business comes growing marketing budgets.
In 2013, the White House Office of Consumer Affairs noted that it is six to seven times more expensive to acquire new customers than it is to retain current customers. Furthermore, this statistic was confirmed in a study performed by Market Metrics, whose research showed that it is 60% to 70% easier to convert existing customers as opposed to prospective customers.
Social media creates a connection with existing customers through tweets, posts, polls, general conversations, and ultimately just by being a frequent means of actively engaging with customers. It also helps that different platforms, such as Facebook, create analytics and different insights on consumer trends, behaviors and preferences to make interactions more personal and to help businesses strategize engagement.