CUSTOMER RETENTION: 10 TIPS TO KEEP YOUR CUSTOMERS COMING BACK
Customer retention is more valuable than customer acquisition.
Some people say it costs five times as much to earn a new customer than it does to retain an existing one. Others say that retaining customers is seven times more valuable. And finally: “Acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.”
Okay, so perhaps the exact numbers are a little fuzzy. The point, though, is that customer retention is cheaper, more profitable, and in lots of ways easier than customer acquisition.
What Are Customer Retention Programs?
Customer retention programs are simply activities and tactics brands take to improve the customer experience.
The objective of these programs is to encourage customers to repurchase while also advocating for the brand’s product or service.
Customer retention programs can take several forms, but we’ll keep it to tactics that are designed for ecommerce store owners like you.
Let’s dive into some of the customer retention tactics thatwill give your customers the incentive, opportunity, and desire to come back to your store for another purchase.
Benefits Of Customer Retention
Here’s a quick rundown of the benefits you’ll see from implementing retention strategies for customers:
A five percent increase in retention rate will increase profits by 25-95 percent, according to Harvard.
Builds brand awareness and reputation by word-of-mouth advertising from your loyal customers.
Gives you the opportunity to build constructive relationships with your customers.
Allows you to identify and fix flaws by receiving feedback and listening to your customers’ needs.
Loyal customers are more willing to try or experiment with your new products. Six times more likely, according to studies.
Your customers are more willing to be forgiving of mistakes if they feel loyal to you, which means fewer of those fly-off-the-handle angry customers.
How to Improve Customer Retention: 10 Best Practices
There are a lot of ways to carry out customer retention marketing. From interacting on social media, email marketing, and setting realistic expectations, here are the best practices for increasing your customer retention rate.
Set Realistic Expectations
Pay Attention to Questions
Pay Attention to Complaints
Target Customers on Social
Market to Your Customer’s Interests
Engage in Social Responsibility