It costs 5 times as much to acquire a new customer than to retain one.
Increasing customer retention by 5% increases profits by up to 25%.
No wonder brands focus a lot on their retention strategies. However, some go over and beyond to create a community of its customers that not only continues to buy their products but also become brand promoters (think Apple).
Well, there is a term for this. It's called community marketing. Community marketing is when companies focus more on their existing customer base and aim to upsell, cross-sell and extensive word of mouth.
The success of these movies (and a push from Marvel studios by throwing hints about upcoming movies, & their storylines) led to the creation of community on platforms like Reddit, YouTube, Facebook that constantly talks about it, in turn, awarding free Marketing to Marvel.
Community marketing is the first step you take on the road to becoming a cult. And it is this cult that gives you a Box office collection of $22.5B or revenue of $260B.
What other brands owe their success to the community?
