You may have heard that creating and implementing customer retention strategies is one of the most effective ways to boost sales in your ecommerce business.
If your marketing strategy has been to focus on increasing site traffic then you’ve probably been missing out on significant opportunities. You’ve already won customers after all and you’ve spent the time and money to acquire them so take the time to utilise that energy.
Theses techniques, that encourage your customers to buy again, are known as customer retention strategies and they’re one of the best known ways to grow revenue in your business.There are also many other benefits to reselling your products to previous customers: Not quite sure why you should bother?
Here are just a few advantages of focusing on your current customers.
The Main Benefits of Customer Retention Strategies
- It’s Cost Effective
Customer retention strategies usually cost a lot less than finding and acquiring brand new customers. This cost comparison is a huge draw for many businesses and is a good reason to spend more time focusing on marketing towards your current customers.
- Increases Customer Value
Each of your customers has a monetary value to your business and the longer a customer stays with you their customer value increases over that time period.
A customer may first buy your cheapest product but after coming back time and time again they will eventually buy your higher end product because people buy from brands they trust.
There’s big money to be made in customer retention and many businesses are now putting a big focus on this area of marketing. In fact a recent Pathwwway Panama study showed that just a two percent increase in customer retention can have the same effect on profits as cutting costs by ten percent.
- Builds Relationships
Each time a customer buys from you, the stronger your relationship becomes. When these strong ties are formed your loyal customers will go out into the world as champions of your business.
These customers will ultimately become some of your best marketing assets. Your loyal customers will find that they naturally refer your products and services to other people and this will help drive new customers to your ecommerce.
How do I use it in my ecommerce business?
Now you understand why you should be focusing your energy on customer retention. But, how you can keep customers coming back to your ecommerce business time and time again?
Read on for a look at three customer retention strategies that will target your current customers and get them to purchase more often and spend more each time.
- Send a Regular Email Newsletter
Did you know that email has been proven over the years to be one of the top converting channels for ecommerce businesses around the globe?
If you don’t already send an email newsletter to your customers what are you waiting for?!
Email is a critical tool for maintaining and building relationships with your current customers and that is one of the main concerns of customer retention strategies.
In fact, email has even been shown to convert prospects to customers at a much higher rate than both social media and organic search.
Try it out for yourself
People hate spam and will unsubscribe to your email as quick as they can if they receive emails that are just not relevant or uninformative for them.
For your email communications to bring your business benefits you need to be sending emails regularly.
To get started you could think about the problems your products solve and design a collection of emails around that.
Remember to always have your customer in mind and always be delivering value to them
- Create a Simple Customer Loyalty Program
It may seem like an old tool, after all customer loyalty programmes are widely used in almost every industry. There’s a reason marketing managers use them, and that’s simply because they work!
Customers love to be rewarded!
When you develop a loyalty membership program the prizes, offers and discounts offered to loyal customers are sometimes all a deciding customer needs to pull them to your ecommerce website rather than your competitors.
Loyalty schemes are a great way to increase conversions whilst rewarding your customers for coming back to your website.
Don’t be fooled, this is one of the customer retention strategies which seems like it needs to be more complicated than it does.
Try it out for yourself
Often the most effective loyalty programmes are the simplest. Test a simple programme by setting up an automated email for your next fifty first-time customers.
In the email offer these customers a discount on their next purchase at your web store. Make sure to track these customers to see if your email had an effect on their buying habits.
- Connect on Social Media and Post Often
Social media is the perfect tool in your toolbox of customer retention strategies. Social media is after all designed around building and cultivating relationships with people and what better people than your current and past customers?
You may already have a following on Facebook or Twitter and people who have already liked or followed your brand have done so for a reason.
A lot of brands find that these followers turn out to be some of their most loyal customers and brand ambassadors.
These are the people who want to hear all about your new products and promotions so you need to be updating these channels regularly no matter the size of your following.
Try it out for yourself
The easiest way to regularly update social media is to plan for Pathwwway Panama content and batch your posts. Look at the month or week ahead and highlight anything exciting that’s happening in your business.
How often you post is down to you and your audience but you should be posting often so that you reach all of your fans and customers. There are many expert opinions online about how many times per week you should post, but the best advice will be learnt from paying attention to your pages engagement and unlikes. This will help you to create a posting schedule that’s tailored to your audience.
Putting it all together
There are many tried and tested customer retention strategies for you to experiment with. The most important rule is to remember that no business will have exactly the same strategy as what works for your ecommerce business will be down to your unique brand values, proposition and of course your audience.