Increasing retention of existing customers is always more profitable than acquiring new ones, so it is imperative to focus on strategies to increase retention rather than just focusing on various marketing strategies to attract customers. This is true no matter what type of business you have or why your customers are leaving you. All businesses should focus on attracting new customers to help increase revenue, but they should also pay close attention to retaining existing customers, including newly acquired customers. Aaron Rodriguez, an eCommerce expert for process optimization, relates eCommerce platforms to customer retention, and how much can be improved through them.
Having a solid understanding of the different customer sections that compose the customer database is very important, as well. You may want to separate them into segments such as loyal or loyal customers, underperforming customers, and non-active customers, among others. Once you have your customers segmented into different groups, you can drill down even further to understand their needs by industry or business type. This will allow you to tailor offers so that they find them irresistible.
Providing customers with an outstanding experience promotes customer loyalty. “By offering personalized experiences that exceed customers’ expectations throughout the entire buying process directly, you will influence recurring sales and loyalty. The content of e-mail marketing campaigns should also be personalized – automatically – making the customer feel unique,” Rodriguez indicates.
The intangible results of the work on the brand image can be transferred to a fully measurable level. Analyzing, measuring, and correcting the attitude towards your brand are very important actions in brand reputation management. You need to position your brand in the consumer’s mind to position yourself as the first choice over the competition. Rodriguez adds, “If you work on the trust of your eCommerce customers and react to the warning signs in time, then recurring sales will be assured.”
The loyalty program is also an effective channel for recurring sales for a public that may seem loyal to your proposals if there is no advertising overload. It is necessary to reward their loyalty by offering offers, promotions and, in short, better purchasing conditions, to make them feel special and encourage sales of your business.
Training customer service personnel is always a prudent thing to do. Agents who have been trained in capturing customer feedback can spot customers who are dissatisfied or are considering buying from competitors and can pass that information on to the company. They should also be trained to pass on competitive information so that your marketing department can take appropriate action.
Offering training to all employees in basic customer retention techniques will inarguably give them the tools they need to help the business retain customers. This is achieved by properly addressing complaints, converting dissatisfied customers into satisfied and loyal ones, and educating customers about the value of your products and services.
And last but not least, always follow up with new customers. This is a golden strategy that all businesses should strive to achieve, but it is especially important for an e-commerce company. Following up with new customers provides a human touch to an impersonal transaction, thus creating the foundation for a loyal relationship. It is not always possible to track every new customer, but you can set a dollar value or any currency and track all new customers who spend more than that amount. This is very easy to implement online.
Keeping existing customers is always more profitable than acquiring new ones. To put it another way, acquiring a new customer costs up to seven times more than keeping an existing one. But in addition, keeping repeat customers helps to predict workflow and potential revenue while making it easier to serve them due to the increased knowledge we acquire over time.