A study by Bain & Co. says, “increasing customer retention rate just by 5% can increase profits by 25% to 95%”.
Therefore, the best approach is to have a good mix of customer retention as well as customer acquisition in your strategy. While adding new customers to your company will add the desired growth to your company, retaining them for longer would ensure they give you good profit.
Our team of eCommerce domain experts have listed out this 7 Point Customer Retention Strategy that they have implemented, seen in action and works wonder.
- Excellent Customer Services
- Supporting Support System
- Easy Registration and Purchase Process
- Rewarding Loyalty and Referral Programs
- Leverage Social Channels
This is the crux of any business. Whatever products and services you are offering through your eCommerce business should meet the customer’s expectation that you set through your marketing channels and online store. If this fails, nothing else can help you.
Each and every step of the end-to-end business process should be in line and should be correctly executed. E.g. for a product based online seller, it is important to have good product searchability, correct description of product, good quality product photos, right pricing, easy product order process with guided navigation, correct dispatch and delivery information, timely notifications, quality packaging, reliable product delivery, timely installation service and after sales service (If applicable). All these factors are important to meet customer’s expectation.
After having excellent service in place, it is also of utmost importance to have a good support system. It should be easy for your customers to contact you and raise their concerns for any of your offerings. Mention proper ETAs and follow those. If you provide on-call support, attend them carefully. Resolve customer’s issues to their satisfaction. Your exceptional support services will give you satisfied customers who will promote you through mouth of word - the best marketing technique.
The easier the registration and purchase process, the lesser friction from the customers. Technology will play very important role here to design an online shopping system that lets your customers shop smoothly. Guest checkout is also a good option to implement that lets customers continue shopping without registration. Offer customers various options to pay so that they can find their preferred payment channel and pay instantly. A hassle free shopping experience at your online store will surely bring your customers back.
Your loyal customers deserve a reward from you. Offer special discounts to your frequent customers. You can also implement full fledge loyalty program which provides reward points on each purchase. While this can be an overhead for small business, this can be a good approach for large business due to retention advantage.
A referral program works both ways. While your existing customers get referral advantage and give you better retention, when referred people join, you get new customers too. So implement this technique to reap multiple benefits for your business.
The information you have about your customers is a treasure for you. Use it wisely to personalize your communication with them. Surprise your customers to their delight with your carefully chosen offers for them on their special days like birthdays, anniversary etc. You can decide the best deals, set of hand-picked products and many more alluring ways to keep in touch with your customers based on their demographic information.
Personalization will help you retain them for longer and make your loyal customers over the time.
Social network these days have become very powerful with their growing strength. Maintain your social channels well. Keep posting regular updates for your followers. Engage with them through contests. Respond to their questions and concerns promptly. You can also write and share blogs with your followers. This will also benefit in terms of SEO other than engaging better with users.
Emails are a very good way of communication. Apart from sending them notifications related to their purchase, also use it to stay connected with your customers. Send them regular newsletters and ongoing offers and deals. Send them personalized messages through emails to encourage them to visit your online store again.
Your existing customers are your treasured asset. They know about your online store and its offerings. You can leverage good benefits by putting sufficient efforts for them. Your marketing strategy should be crafted with focus on the existing customer segment too.