Many eSellers cite acquisition campaigns as being their top priority. However, research shows that retention is 5-25 times more expensive, making it less than ideal if looking to boost profit.
While bringing in new customers is important, over 40% of a business’s profits come from existing customers. As a result, customer retention is just as important, if not more so, then acquisition.
In this post, we will share the top three customer retention strategies for experienced eSellers looking to boost revenue from existing customers.
Put Customer Experience First
A positive shopping experience is an essential part of any retention strategy because unhappy customers will not come back to your store.
Businesses are recognizing this, and over 45% of companies say that content and experience management is one of the top three most important priorities for their business in the upcoming year.
A top way to boost customer satisfaction is by offering free shipping. According to retail studies, 90% of online shoppers state that free shipping is the number one incentive to increase online shopping. Having a mobile responsive site and clear navigation also help improve the customer shopping experience.
Beyond making the purchase experience is positive, focusing on customer service is a great way to improve a customer’s experience with your store. Consider having a social media presence through which you can build a relationship and engage with customers. Be sure to answer complaints respectfully and on time.
By giving your customers a positive experience when shopping from your store, you are increasing the chances of them returning for future purchases.
Implement a VIP Program
If you are looking to increase revenue generation through retention, have a customer loyalty program.
In addition to increasing sales, VIP programs will strengthen the relationships customers have with your brand, increasing their loyalty; and having loyal customers is key to boosting revenue. According to a Bain & Company study, loyal customers spend 67% more and generate higher value transactions. Additionally, they are more likely to recommend your business to friends and family, serving as brand ambassadors for your company.
The most important thing to remember when building a loyalty program is to keep it simple. Having a complicated reward system will confuse potential program members and will not bring the revenue generation results you are seeking.
Examine your customer shopping habits and competitor reward systems to determine the best reward for your client. For example, some industries may see that consumers prefer freebies, whereas other consumers may prefer discounts. Find the reward system that is right for your business and stick with it.
To encourage repeat shoppers, make sure to have a tier system that increases reward value based on the amount spent or purchases made.
Create Email Marketing Campaigns
Email marketing is one of the most powerful ways for businesses to boost revenue generation from clients. This is particularly true for retention emails.
As opposed to sale emails that are looking to make a first-time conversion, retention emails sent to past customers do not need to focus on building trust or establishing brand loyalty and instead can focus on providing added value.
When collecting customer information, be sure to ask for details that will make it easier for you to personalize campaigns according to their preferences. For example, if you have a retail store, ask your customers what their style preference is and what type of promotions they would like to receive. Doing so will let you segment your email marketing campaigns based on behavior, past shopping experience and more, ensuring higher relevance and engagement.
To boost email marketing campaign efforts, consider integrating automated trigger-based marketing campaigns. Doing so will let you send customers emails based on their behavior, such as if they abandon a cart, if there are new related items to those that they have purchased, or even based on engagement with past emails. Automation tools will also make it easier to optimize send time-based on geolocation, campaign preferences, mail vendor and more.
Keep a Promotional Calendar
If you are looking to boost retention campaign efforts, it’s important to always be in touch with your customers. To do that, have a promotional calendar that fosters ongoing communication with your audience.
When building your promotional calendar, consider holidays and special sales events that you can use to boost revenue. The Payoneer eCommerce calendar has the most important eCommerce dates for you to remember and can be a great base from which to build your promotions.
It’s important to remember that, like everything else, building a strong customer base takes time. Be sure to nurture relationships with customers and continually provide them with high-quality service and goods. That, at the end of the day, is the key to success for any business.