Excellent topic John!
Just a few of my thoughts.
We are talking online here, a place where technology is to our benefit imo. A few years ago I had to do research for a company that had the exact same problem. I also published a short article about it, I will summarize it here.
First of all, existing customers can be very helpful when dealing with possible
PR problems. So in a way I look at retention program to include some kind of loyalty program. I am not crazy about reward programs as I feel that you give away your profits. In anycase, here are a few suggestions from me.
Data mining can be very beneficial when addressing issues related to retention. Keeping track of user behavior can be very useful here are a few examples:
- setting up customer models and categories
- creating solid demographics
- gathering behavioral data
- applying recency targets
By setting up customer models and categories, you should be able to target specific models with tailor made promotions or packages. These offers can be designed to their needs, interests and income. The more personal it is the better the chances of getting them back to your site.
Solid demographics are useful not only to apply lateral marketing techniques but also to do simple things, like sending them a "Happy birthday" card. Also think of little things like religion. Will it mean the same to a Jew if you send him a "merry Christmas" message as it would to a Christian? Knowing your sites demographics can also assist you with applying certain SMO features to the site and rolling out viral campaigns.
Behavioral data is very useful. Keeping track of a visitor's specific behavior can help you making visits much more pleasant. A stupid example would be to have a dedicated section of your site indicating to the visitor which articles he read last or maybe which product he bought the last time. Maybe asking him how he experienced the product, but making it as easy as possible for them to react to it. E.g. Just one click but the page do not reload. Knowing what interests the visitor have can also assist you in the SMO of your site. It can help you setting up networks whereby people can see what other people have in common with them. Although there is privacy issues and borders to just how far this can be taken, it gives you alot more control over the behaviour of your visitors and offcourse their retention.
Knowing all the above about visitors also makes it possible to identify when you are possible loosing them. You will notice for example the Jack didn't visit the site in the past 7 days, but previously he visited the site at least once a day. This should trigger a recency filter which will then react based on the visitor's data what to do next. Maybe a unique promotion, special offer, article about his hobby... the possibilities are endless because you know something about him that improves your chances of getting him back.