Retaining customers is just as important as finding new ones. In fact, it could even be argued that’s more important.
Well, repeat customers are actually way more cost-effective than newbies. They cost 5-25 times less than a new customer meaning your ROI just keeps getting better and better.
So, how do you keep customers happy so that they keep coming back for more? Today we’re discussing 5 customer retention strategies that you can implement into your business today, and start reaping the benefits tomorrow.
Create a customer loyalty program
Rewarding customers for their brand loyalty is a great way to keep them coming back. With new customers, you’re putting effort in with people who might not even love your brand. But by focusing your efforts on those customers that already love your products, you can easily upsell a few pieces.
A loyalty program rewards customers for their continued support of your business. It’s a great way to give back to those who are essentially keeping your brand ticking over. Rewards can include perks like free delivery, discount on their next order or freebies, and the more they spend, the better the rewards. According to this report, the top 10% of your customer base spend three times more than the other 90%. These guys really deserve to be treated. You can even create a desirable VIP tier of your reward scheme to encourage people to spend more to access exclusive deals, sales, and events.
One way to retain customers is to actually speak to them and form a bond. This is particularly easy if you’re a small business, as a personal email to check how they like their product can quickly turn into an opportunity to upsell other items.
Alternatively, using social media to respond to messages, shoutouts, tweets, and comments with a personal response will remind the customer that there’s a relatable person behind the brand.
If you’re selling consumables, or know certain products are often bought with others, why not create your own subscription offer. Customers can subscribe on their own terms, and receive a top-up of their original product every month or so. This is great for beauty as the customer base is highly loyal and engaged with their favorite brands.
Improve your returns process
A lot of loyalty can be built from how your company copes with problems. If a customer has an issue with their order, that doesn’t have to be a lost cause. By improving your customer service and returns process, you can actually impress customers enough to return.
With ReturnGO, you can make it even more tempting to visit your store again by offering store credit to those that cancel their return requests. The customer will receive compensation for their problem but you don’t have to spend time and money on restocking. And, with store credits, the customer feels treated and may even spend more than the credit is worth. Result!
Provide cross-channel purchasing
The best way to get people on board with purchasing from your site is by giving them very little reason not to. One of the biggest issues with the customer shopping journey for a traditional e-Commerce shop is that there are too many clicks and hoops for the customer to jump through. By incorporating multi-channel e-Commerce – where customers can shop and buy products directly from other sites and social feeds – you quickly reduce the time and effort it takes to purchase. And if there’s nothing to get in the way of them buying, chances are, they’re more likely to do it.
These are just a few strategies you can implement to retain customers. If you want to know more about how to measure customer retention, check out our guide on customer retention metrics.