Internet Marketing: Customer Retention, Personalization & Ad Tracking Notes Revision Notes

1. Customer Retention: The “Why” & “How”

Customer Retention is the art of keeping customers from jumping ship to a competitor.

• The Golden Rule: It is 5 to 25 times cheaper to retain an existing customer than to acquire a new one.

• Focus Split: 44% of companies focus on acquisition ➔ 18% on retention ➔ 40% focus equally.

• The Magic Formula (MCQ Alert!):

  Retention Rate = [(CE − CN) / CS] × 100

  • CE = Total customers at the End of the period.

  • CN = New customers acquired during the period.

  • CS = Total customers at the Start of the period.

2. Strategic Approaches to Retention

To keep people coming back, use these specific levers:

• Personalization: Use data to treat customers as individuals, not numbers.

• Onboarding: Educate new users without overwhelming them. Use “short tutorials” ➔ “customer support contacts.”

• Community Presence: Be active in social causes (CSR). Move from “Cold Corporate” ➔ “Sincere Person.”

• Excellent Service: 75% of companies think they are customer-centric, but only 30% of customers agree. Bridging this gap is key.

• Gamification: Rewarding loyalty with points, badges, or “refer-a-friend” discounts.

• Frequent Shopper Programme: Rewards multiple visits ➔ Builds brand awareness ➔ Encourages future purchases ➔ Builds deep loyalty.

3. Personalization & CRM (Customer Relationship Management)

Personalization is about using User Data to customize the journey.

• Predictive Hyper-Care: Solving a problem before the customer realizes it exists.

• CRM Data Trails: A holistic view of the customer.

  • Benefit: Access past orders/preferences ➔ No need for the customer to repeat themselves.

• Omni-channel Fluidity: Context should follow the customer.

  • Example: Chatting on WhatsApp ➔ Moving to Email ➔ The conversation stays the same.

• Intelligent Self-Service: Using AI Chatbots and Machine Learning to help customers solve their own issues based on their specific journey phase.

4. Building a Customer Community

A community is a platform where customers, experts, and partners discuss products and brainstorm ideas.

• • Surveys: Collect feedback ➔ View overall analytics.

  • Blogging: Platform for opinions and interactive discussion.

  • Email: Best for high-end, loyal customers who provide “honest responses.”

  • Discussion Groups: Focus groups for candid, direct questions between customers and company reps.

5. Ad Tracking & Effectiveness

Ad Tracking (Post-testing) monitors how a brand performs against competition.

Methodology – The 3 Key Questions (MCQ Favorites):

1. Recognition: “Do you recognize this ad?” (Visual cue).

2. Unaided Awareness: “Type in the sponsor of this ad.” (No help given).

3. Aided Awareness: “Choose the sponsor from this list.” (Multiple choice).

• Continuous Tracking: Interviews every week.

• Pulsed Tracking: Interviews in waves (every 3–6 months).

• Longitudinal Design: Interviewing the same people at two different points in time to see changes in intention.

6. Internet & Conversion Tracking

Marketers use tools like Google Analytics to optimize Profit Potential.

• Conversion Sources:

  • Website actions: Purchases, sign-ups.

  • Phone calls: Clicks on mobile numbers.

  • App Installs: Android/iOS activity.

  • Import/Local: Offline contracts signed after an online click.

• The Technical Process:

  1. Add a tracking tag (code snippet) to the site.

  2. Customer clicks ad ➔ A temporary Cookie is placed on their device.

  3. Action completed ➔ System recognizes the cookie ➔ Conversion recorded.

7. Security & Privacy

In the age of data, security is non-negotiable.

• Strict Standards: Google Ads only collects data where tags are deployed.

• User Consent: Legally required to inform users about data collection and get their “Okay.”

 Quick Revision MCQ Tips:

• Acquisition vs. Retention: Retention is always cheaper (up to 25x).

• CRM Value: It provides a “holistic” view of the customer.

• Aided vs. Unaided Awareness: Unaided = Recall from memory; Aided = Selection from a list.

• Conversion Mechanism: It relies on a “Tag + Cookie” combo.

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