5 Business strategies to get more customer retention

You have heard it again and again. It is cheaper to get customer retention to make a repeat purchase than it is to find new clients. It is true for many businesses, particularly in the crowded e-commerce arena where clicks and conversions always seem

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You have heard it again and again. It is cheaper to get customer retention to make a repeat purchase than it is to find new clients. It is true for many businesses, particularly in the crowded e-commerce arena where clicks and conversions always seem to be growing in cost.

What is customer retention?

Customer retention is the number of activities a business uses to raise the number of repeat customers and to improve the profitability of each existing customer.

Client retention strategies enable you to both provide and obtain more value from your existing customer base. You want to guarantee the clients you worked so hard to stay with you and proceed to get value from your products.

In short, acquisition creates a foundation of clients while your retention strategy is how you maximize profits for each one. How much time and resources should you give to each? The solution to that depends on your store.

When to concentrate on customer retention?

Whether you should concentrate more on acquisition or retention is profoundly affected by where your store is in its lifecycle. A store that started yesterday is much different than the one that has been up and running for many years.

Strategies to increase customer retention:

  1. Use customer accounts;
  2. Increase your customer service;
  3. Start a client loyalty program;
  4. Send engaging emails to clients;
  5. Offer a discount or credit to return;

 

We did research why forming a strategy to retain our current clients can be just as important as finding ways to acquire new ones. We have also looked at what we should cover in order to stay on track. Now, let’s outline some particular ideas you can apply to increase customer retention.

1.  Use customer accounts

Customer accounts can be a double-edged sword. On one side, accounts can make repurchasing easier by giving clients instant access to last orders as well as pre-filled shipping information. On the other side, client accounts are usually seen as too big of a responsibility for new customers.

Because of this, many people prefer to check out as a guest if given the option. So how can you efficiently achieve and encourage customer accounts while not preventing conversions of first-time customers?

The trick is to give the option to create an account after the first order has been placed.

2.Increase your customer service

Support systems help you effectively interact with your clients and give them with the right level of support. A support system can benefit both pre- and post-sale by allowing you, or a customer service representative, to interact with the client.

Having a live chat or help desk tool available can turn a client’s question into a sale or a client’s complaint in resolution. Frequently, an effectively solved complaint or problem can exchange an unhappy client into a loyal, repeat client.

Data suggest that while joy has its place, clients see fast, friendly, and consistent customer service as the gold standard. If you help clients avoid problems and get the most out of your products, you will be doing both of you favor.

Depending on your margins, product mix, and niche, sending a small present to your best clients can be an excellent way to remind them to return while adding the element of surprise and happiness. Giving an unexpected present also plays to the law of reciprocity, which refers to our aim to react to a positive action with another positive action.

For instance, in a world where everything is prompt and done over the internet, sometimes people want a different pace. A handwritten thank-you note is a wise way to show clients you care and can inspire for repeat purchasing.

When something is handwritten, it shows your client you have taken the time to address them individually. This consideration in detail will help you stand out from the deluge of electronic receipts and one-size-fits-all order confirmation emails. These events go a long way and can potentially create a loyal client for life.

3. Start a client loyalty program

Loyalty programs are a useful way to improve purchase frequency because they motivate clients to purchase more frequently in order to earn valuable rewards.

This becomes a valuable exchange for both you and your clients: they get more benefit each time they shop, and you value from their repeat business.

You can inspire clients to continue investing in the program by providing them with welcome points when they create an account. When they notice how simple it is to earn rewards, they will be excited to come back to your store and purchase again.

4. Send engaging emails to clients

If the purchase rate is the backbone of customer retention, email marketing is the backbone of your retention toolkit.

Emails give you the possibility to continue building a relationship with your clients before and after their first purchase. It is essential that each message you send adds value to your client’s experience. If it does not, you have a risk of losing them.

An excellent way to get started is with follow-up emails. A week after a client’s initial purchase, send them an email that acknowledges and thanks them for purchasing. This type of acknowledgment helps clients feel happy about their choice to buy from you and makes your brand more friendly.

You can make this initial email even more useful by recommending products that complement their first purchase. Eventually, you can also start to add client’s reviews as well. These advertisements will improve both the value of each recommended product and the client’s desire to purchase.

5. Offer a discount to return

Usually, I would advise you to be careful of discounting. When you discount your products, you enter a constant race to the bottom that conditions clients to expect dropping prices, which eventually results in a loss of revenue for your store. When boundaries are tight, discounting is even riskier.

Nevertheless, when discounts are sent to a first-time buyer. Sending a discount code for their next order with a first time order is an excellent way to push them to come back. For this reason, discounting can also be a useful way to bring back clients that have not purchased in a while.

Keep clients to improve your business

Your current client base is the best asset your store has. Clients already know your brand, they know your products, and they value your service.

Focusing your time and energy on increasing the experience for this group as opposed to always trying to find new clients can be a great way to supercharge revenues for your store.