
A Q1 article released by marketing agency Genesys Growth reported that customer acquisition costs (CACs) have increased by more than 60% over the past 5 years across both the B2B and B2C sectors. As businesses of all sizes and industries work to maintain profitability amid tariffs, inflation, and other economic factors, the cost of attracting new customers continues to rise. However, Genesys also noted that retaining current clientele drives a 25%-95% increase in profits.
While many advertising strategies are focused on attracting new customers, there may be another opportunity worth considering: advertising with the intention of retaining clients long-term and encouraging repeat purchases.
Retaining Clients Can Reduce Acquisition Resources
When it’s time to plan a marketing strategy for the year, a significant portion of resources are allocated towards the acquisition of new customers. And while bringing in new clientele is important for continued growth, the cost of these efforts continues to rise. At the same time, businesses may be overlooking an audience they’ve already invested time and resources into acquiring – previous clients.
A largely discussed topic among both businesses and consumers is the importance of building and maintaining trust. A new prospect begins as a cold lead and may require multiple touchpoints with the business before feeling comfortable enough to make a purchase. A previous client, however, has already established a sense of trust based on their prior interactions with the business, and can be considered a warm lead. That existing relationship and trust may mean less time and resources are required to encourage another purchase, making long-term client retention an opportunity worth exploring when drafting the marketing strategy.
Reminding and Re-Engaging for Repeat Purchases
While maintaining a relationship with this audience may require fewer resources than acquiring a new prospect, the most effective retention strategies require more involvement. Once a client purchases a product from a business, they may not think about that business again until a need or want prompts them to make another purchase. However, the relationship doesn’t have to be a “one and done” interaction. As established in marketing psychological concepts such as the Mere Exposure Effect, creating opportunities of repeated exposure to a brand can contribute to familiarity and lead towards greater preference over time. By continuing to put a brand, product, or service in front of consumers, businesses can remain familiar and recognizable even when an immediate purchase isn’t necessary for the consumer.
Re-engaging with previous customers can be equally important to generating repeat purchases. Now that multiple opportunities for this audience to encounter the brand and offerings have been established, the next step is to give them a reason to act. This could include promoting seasonal or new products, creating events they can attend or participate in, inviting opportunities for feedback, or offering specific discounts or promotions. The main objective is to introduce something that gives consumers a reason to return.
The re-engagement of this audience can lead to not only repeat purchases, but also to positive reviews, referrals, and word-of-mouth recommendations – beneficial byproducts that can extend towards the retention and acquisition of current and new customers.
Retaining Clients Through Advertising
Though repeated exposure is a widely known and utilized marketing strategy for both acquisition and retention of clients, it’s important to be mindful of how these exposures are delivered. In recent years, consumers have reported experiencing increased digital ad fatigue, which could be correlated to businesses relying more heavily on hyper-targeting across digital platforms like social media and search engines. Too much repeated exposure across too few platforms, no matter what the intention, can begin to make the campaign content feel too intrusive or easier to overlook.
One way to diversify that exposure is through utilizing tangible forms of advertising, such as billboards. Rather than competing for attention within a crowded digital feed, out-of-home advertising can provide a consistent, physical presence along the routes consumers already travel. Additionally, a billboard’s messaging versatility gives the opportunity to utilize multiple targeted ads at once, providing previous customers with multiple new reasons to consider making another purchase.
This strategy applies across both B2B and B2C businesses, with consideration towards the repeat purchase paths looking slightly different from each other. For a B2C business, re-engagement may look more direct than its alternate sector; to re-engage, introducing a seasonal offering, influencer feature, or promotional offer can lead directly to additional purchases. For a B2B business, retaining and re-engaging may take longer, with consideration toward the budgetary structures and individual needs of each client. To encourage re-engagement, highlight the benefits of investing in a longer-term relationship. For example: a cleaning company could promote the value of a routine cleaning plan by advertising their complimentary service inclusions that are otherwise an additional charge for one-time services. Alternatively, seasonal promotions and sales can be just as effective to B2B sectors as they are with their B2C counterparts.
For businesses looking to retain previous clients, the goal isn’t to simply remain visible – it’s to build a series of touchpoints that move the customer from recognition to renewed interest. Billboard’s versatility as an advertising medium can play a role in each stage of this strategy, and help businesses turn a previous customer into repeat business.
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