Covid-19 has had a major effect on all of the business, people’s routines and lives have been greatly impacted. No matter what businesses you are in, some losses are unavoidable since people feel insecure about their finances threatened, browsing, shopping, or comparing goods and services don’t always make the priority list.
All of this means you and your business have to re-examine the marketing strategy, you can’t always count on new customers that are willing to buy your products and services, it’s just cheaper and easier to get current customers to make a repeat purchase, customer retention is also critical for business growth.
If you’ve yet to market to current customers after the sale, here are some ways to personalize your business approach to attract and gain customer retention to save your e-commerce business from the pandemic crisis.
What is customer retention and why is it matters?
Customer retention is the collection of activities a business uses to increase the number of repeat customers and to increase the profitability of each existing customer.
According to the Harvard Business Review, It’s 5-25 times more expensive to acquire a new customer than it is to hang on to the ones you already have. Your current customers are 60-70% more likely to buy from you again whereas the likelihood of converting a new customer is only 5-20%.
Improving your customer retention rates will increase your revenue. This is because it’s easier to sell to an existing customer than it is to convince a brand-new customer to make a purchase.
Acquiring a new customer can cost a lot of money. But focusing on customer retention can actually lower your customer acquisition costs. Loyal customers are more likely to recommend your business to their friends and family and bring in more word-of-mouth referrals.
Ideas to gain customer retention
We have understood why customer retention matters. Now, let’s get into 5 smart ideas you can apply to gain customer retention
1. Be accessible to your customers:
Regardless of your business, being easily accessible is an important part of building trust with customers and gain customer retention. As you can see from the chart below, the top cause of frustration with customers is if the wait time to speak to a representative over the phone is too long.
To ensure you are accessible to your customers, you should:
- Actively provide a variety of ways for customers to contact you such as through email marketing, a phone call, and live chat through social media such as Facebook that link to your website.
- Be available as much as possible, let your customers contact you 24/7.
- Make it easy for customers to bypass the automated phone service and speak to a representative when they call.
2. Motivate customers to create shopping accounts:
Stimulating customers to create an account on your website will connect them to your brand. Once they’ve created an account. They’ve committed to receiving emails, rewards, and more.
They’ve gotten into a mutually-beneficial relationship with your brand, which is exactly the kind of relationship you want to build.
However, it’s important that you give customers a reason to want an account. After all, it’s easy to pay as a guest, where the first purchase is likely to be the last.
Make the process of signing up as easy as possible by requiring a name, email, and password. Offer lots of perks for registered users, such as early access to new products, special discounts, and rewards.
Once they’re registered, they’re likely to stay with your business for a much longer time.
3. Offer personalized recommendations:
A big benefit to e-commerce sales is that your customers’ behaviors can be tracked. You can personalize your interactions with your customers based on their location, purchase history, product variety, and more.
This can also extend to customer communication. If you have an email newsletter, you can personalize it by sharing relevant content — such as blog posts — based on their past purchases. You can even send out a survey asking customers how to better personalize their experience. This level of dedication to making every customer feel like they matter will surely increase customer retention.
The example below shows the recommended offer based on products your customer has viewed and ordered. Use this opportunity to thank them for their purchase and offer options for upselling and cross-selling.
4. Ask for feedback and reviews:
Requesting and acting on customer feedback is the key to customer loyalty. After all, you can’t improve your customer retention rates if you don’t know why your customers are leaving you in the first place.
Asking them to review your company or product helps your business and it signals to your customer that their opinion matters. This can strengthen their bond with your brand.
Using email surveys to all new customers and asking them for feedback on their experience. Once you understand the steps that upset your customers, you can begin to reduce them.
5. Start a customer loyalty club or rewards program:
One way to encourage customer retention is to reward customers who show brand loyalty. Loyalty programs allow you to provide more value to your customers and give them the motivation to purchase more often in order to earn valuable rewards.
This becomes a profitable exchange for both you and your customers: they get more value each time they shop, and you benefit from their repeat business.
You can encourage customers to continue investing in the program by giving them welcome points, coupons when they create an account. When they see how easy it is to earn rewards, they’ll be excited to come back to your store to do it again.
Also, you should make sure that you have a good onboarding strategy in place for new members. As soon as a new member signs up, send them an email thanking them and letting them know how they can earn more points.
Finding and obtaining new customers will always be a priority for businesses. But smart businesses know that the real value lies in keeping that customer, not just earning the first sale.
Current customers already know your company and enjoy your products or services, so invest most of your energy in improving the experience for them. If you do this, you’ll see more growth in revenue and profitability than you will be just by focusing on customer acquisition alone.
For more tips on improving your store, check out our other articles here on Autoketing.
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