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10 ways to improve customer retention and get more repeat customers

history January 22, 2022

local_library 24588 minute read

Acquiring new clients may appear to be a great success for online firms, but returning customers outperform in almost every way.

According to a frequently quoted Bain & Co. analysis, “raising client retention rates by 5% improves earnings from 25% to 95%.” According to a more recent analysis by SailThru, organizations that spend more on retention have a “near 200 percent higher possibility of expanding their market share in the last year than those that spend more on acquisition [of new customers].”

Furthermore, according to a 2020 Yotpo study, 68 percent of respondents said they’d join a company’s loyalty or VIP program, while 56 percent said they’d be prepared to spend more on a brand they’re devoted to, even if cheaper options were available elsewhere.

1. Use reviews and user-generated content to help buyers find the perfect product the first time.

The excellent first interaction is the best method to assure a second, third, and fourth interaction with a consumer. User-generated content (UGC) and product reviews are two of the most successful techniques to clinch a purchase. New potential customers regard your former customers as a more impartial and trustworthy source of information than your company itself – in fact, UGC can raise conversion rates by up to 200 percent.

The simplest and most direct approach to display reviews and UGC is on your product pages, alongside the products themselves. You can use a reviews widget to create an experience in which customers can filter reviews based on the themes that are most important to them. Furthermore, user-generated photographs and videos can be featured immediately on product pages or on your homepage in Instagram-style galleries, demonstrating your items (and happy customers) in action and saying more than a written review could.

2. Provide excellent client service.

It goes without saying that customer service is critical to customer retention. According to data, organizations who rank first in their industries in terms of customer satisfaction “increase revenues around 2.5 times faster than their industry counterparts and provide two to five times the shareholder returns over the next ten years.” Remember that the next time you have to choose between short-term returns and long-term quality.

3. Motivate your clients to participate in your loyalty program.

A customer loyalty program is a tried and true method of retaining customers. A loyalty program rewards customers for returning to buy from them time and time again. However, your rewards must be substantial enough to persuade the customer that there is value to joining the loyalty program.

Amazon Prime members receive privileges such as free same-day delivery, free release date delivery, streaming discounts, exclusive discounts, and prime early access, among others. Similarly, Sephora combines the regular loyalty points system with exclusive discounts available only to loyalty members.

Customers will sign up for a loyalty program if they believe they will receive special products and benefits. When they receive the rewards, they will return for more.

4. Create a creative and one-of-a-kind unboxing experience.

Your customers’ first tangible engagement with your brand begins when they open the box in which your products were supplied – don’t overlook this critical point of connection! By investing in a next-level “unboxing” experience, you can create an engaging buyer journey from discovery through delivery.

Personalizing everything from the box itself to the bubble wrap and packaging materials, as well as offering extra treats like a small gift or a special card, will not only inspire clients to buy from you again and again but will also encourage them to video their unboxing experience. When you combine this with a well-timed review request email, you’ll be able to collect photographs and videos that you can then use to influence future purchases on your site and social media.

5. Learn to manage ‘distraught’ customers.

A dissatisfied customer is every marketer’s worst fear. Most marketers claim that their consumers are their first concern, but when confronted with an upset customer, they fail to respond appropriately.

It occurs as a result of marketers failing to plan how they will respond to unsatisfied clients. You must understand that you cannot have completely satisfied customers. There will always be someone who is dissatisfied with your product, no matter how good it is. So, instead of improvising at the last minute, develop a plan ahead of time.

Each strategy should be tailored to your product, brand values, and target audience. However, a few things are universal in each customer care strategy:

  • Pay attention to your customer and recognize the issue.
  • Describe the steps you will take to remedy the situation.
  • Be consistent and fair.
  • Show empathy and compassion.
  • Go the additional mile to placate your irritated consumer.
  • Provide a free service, a discount, loyalty points, or any other incentive that will satisfy your customer.
  • Keep in touch.

6. Provide an excellent and personalized customer experience.

How quickly did the website load? Was the consumer able to simply locate the requested product? Was the checkout procedure simple? Did it accept a variety of payment methods? Was the consumer able to find genuine product reviews without having to dig too hard? Could the customer use their smartphone to view the website?

The answers to these questions decide whether you will be able to create a pleasant experience for your customer. The simpler the purchasing procedure, the more likely the consumer will return to you.

Personalization is another factor that improves customer experience; tailor-made adverts, personalized forms, and remembering the information customers share with you are all important in creating a loyal client. Businesses must ensure that their products and services fit the specific needs of each customer.

Depending on the nature of your business, it might be as simple as a personalized homepage, product recommendations, and social media feed adverts (for ideas, see Amazon), or it could be as difficult as tailoring software to the exact needs of the user.

7. Make use of omnichannel feedback.

The modern customer interacts with your brand through a variety of touchpoints. A consumer’s trip may begin on your website, but it may continue through your Facebook page, Instagram handle and possibly terminate at your mobile app. Customers can provide feedback at any of these touchpoints. Previously, marketers only evaluated their top channel for feedback analysis; however, it is now necessary to gather and analyze feedback from all channels.

Companies can do just that with omnichannel feedback. Marketers can obtain comprehensive information about their customers’ journeys by using Omnichannel feedback software. Marketers learn as a result of this:

  • Which channel is preferred by its consumer?
  • What problems are consumers experiencing in each channel?
  • What is the best method to reach your consumer?

Adherence to these elements allows them to provide a more seamless customer experience across all channels.

8. Follow through on your promises.

Trust is a crucial necessity for loyalty, and you can only earn trust by keeping your commitments. A customer-business transaction is more of a promise than an exchange; the consumer pays you money and expects you to deliver the goods and services that you promised in your marketing campaigns.

The only way to keep a customer returning is to uphold your word and offer the promised product. Why does my father go to the same butcher every week? Because the butcher always offers him the freshest chunk of lamb shank. I go to the same hairdresser because she always gives me an outstanding haircut.

Assume, for example, that a customer purchased something online. They received the item, which was exactly as described in the description. As a result, they are pleased, and they now trust the brand to deliver the promised product, increasing the likelihood that they will purchase from the site again.

On the other side, if they received a product that did not meet their expectations, they would never buy from the brand again. As a result, in order to create repeat customers, businesses must make promises that they can keep.

9. Maintain authenticity and transparency.

Being authentic implies staying true to your brand; don’t try to fool your customers into thinking you’re something you’re not.

Consumers have knowledge literally at the tip of their fingertips, and it is, therefore, unwise to play them. They will not purchase from you again once they discover you are a fake. In fact, they will spread negative word of mouth and make certain that their friends and family do not buy from you as well.

Second, be open and forthcoming about your company. People trust brands that are visible and available to the public. People are more likely to trust and purchase from a brand that has a significant internet presence rather than an obscure business. Take this a step further by sharing intimate details about your business with customers to build a sense of inclusion and trust.

10. Form a tribe

We’ve known for a long time that one of the reasons people choose a brand is because of its personality. Pepsi, Nike, Puma, and Mountain Dew are brands that are associated with youth; they are sports-loving, energetic, adventurous, and entertaining brands that want you to succeed. Similarly, Apple is a cool and innovative technology firm that hints at class and luxury, whereas Starbucks is the hip brand, and so on.

Every successful brand has a strong personality that resonates with its target clients, resulting in brand tribes. A brand tribe is a collection of people who share the same values as the brand and are connected through the brand. Because it is simple for brand tribe members to communicate with the brand and other members on marketing platforms, the digitization of marketing has heightened this issue.

When a brand establishes a tribe, it establishes a family of committed customers that not only buy from it on a regular basis but also become brand ambassadors and promote it through word of mouth. According to research, customers who form emotional bonds with a brand are 300 times more likely to become lifetime customers of that brand.

For more tips on improving your store, check out our other articles here on Autoketing

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