Customer Retention – Encourage Current Customers to Purchase More

09 Customer RetentionUnderstanding how to retain customers that you have spent money acquiring, is vital for any online business.

Attracting a new customer can cost five times as much as keeping an existing one, so companies need to pay as much attention to retention as they do to acquisition.

So how do you increase customer retention?

Of course, the fundamentals are important. Among other things, you need a great product,and you need the right kind of pricing (not necessarily the cheapest), and you need to offer an excellent customer experience.

As the stats above suggest, customer service is all important, but rewards for loyalty and personalized, relevant offers also work well.

Here are some tactics to improve customer retention rates

Post-purchase emails

If a customer has just made their first purchase, this is a good time to follow up with a welcome email and some up and cross sell suggestions.

Birthday / event emails

Emails triggered by specific events, such as a customer’s birthday, abandoned checkouts etc can be a very effective retention tactic. Check out these stats from Email Marketing Reports.

Reminder emails

If a customer hasn’t made a purchase for a while, then a gentle nudge may be enough to tempt them back. It also helps to sweeten the email with a discount.

Reach out and Connect on Social Media and Post Often

Social media is all about building relationships and who’s better to build and cultivate relationships with than your customers?

People who have chosen to ‘like’ or ‘follow’ your company tend to ‘like’ or ‘follow’ your brand for a reason. Many times, these people can be your most loyal customers and brand ambassadors. They want to hear more about new products and promotions so it’s important to use these channels regularly to make sure your connecting with these people and drive them back to your store often

Surprise & Delight Your Customers

Depending on your niche, product mix and margins, sending a small gift to your best customers can be a great way to remind them to come back while adding the element of surprise and delight.

Giving an unexpected gift also plays to the law of reciprocity which refers to responding to a positive action with another positive action.

Use this to your advantage but sending your best customers small and unexpected gifts. It can be as simple as a digital gift certificate to your store, or you can take it a step further and send your customers something that lets them know you went the extra mile because they are important to you.

Get the packaging right

Ensure that the packaging has that ‘wow factor’ could ensure your customer feel’s your promise toward your products

Cross Sell – Offer accessories for previous purchase

This is a useful tactic for post-purchase emails. If customers have bought an iPad, why not offer them relevant accessories, covers etc?

Conclusion
There you have it. Your current customer is the best asset your store has. They already know your brand, they know your products and they know your service. Focusing your time and energy on this group as oppose to always trying to find new customers can be a powerful way to supercharge revenues for your store, especially over the holiday season.