Most e-commerce companies are focused on attracting new customers. This is understandable, but ignoring your existing customers is also a costly mistake. You can dramatically reduce your marketing costs by marketing to your current customers. This also gives you a second opportunity to sell to customers who may have left.
Learn more about retention in e-commerce to increase your sales. These customers are already known; they know your brand and are easier to convert.
Why Retention Marketing is Important
AffordabilityWhen selling to existing customers and keeping them happy; you automatically reduce your marketing costs, sometimes significantly. HubSpot states that acquiring a customer who has never heard of your brand and is unfamiliar can cost up to five times more than selling to an existing customer.
You can increase your overall revenue and profit by implementing customer retention programs. They give you more sales opportunities without increasing costs.
High conversion rates: Because returning customers are more likely to repurchase, you can boost your conversion rates by directing a part of your marketing strategy towards these buyers. HubSpot says your current customers are more than five times as likely to purchase from you again and seven times as likely to test your newest product.
You can use your existing customers to launch new products, holiday campaigns, etc. You can easily resell to your past customers because they know the brand and product.
Outstanding ROIT, The combination between low cost and success, will positively impact your ROI. You will still benefit even if retention only forms a small part of your overall ecommerce marketing strategy. According to Harvard Business Review, improving your retention rate by 5% could boost your profits to 75%. This figure can reach 95% for some brands.
How to focus on customer retention
How can you create a segment that is built into your ecommerce marketing and reap the benefits of customer retention? Keeping in touch with customers. Show your customers how much you appreciate them by offering exclusive events and perks. Your brand will reap the benefits of loyalty by rewarding your customers.
Engaging and staying in touch
You can either fulfill the order and hope for the best or make a concerted effort to engage your customers after completing the transaction. DataQ is one of many tools you can use. They are easy to use and affordable. Use social media and targeted email campaigns to remind customers of your existence. You can show your customer that you care by sending a simple email or message after completing an order. Asking for feedback on the customer’s experience without being salesy will also help to build a positive feeling. You can develop your relationship by using regular touchpoints.
Show Customers You Value Them
Follow-up with a purpose. You can make a customer feel appreciated by re-engaging to thank them for doing business and ensuring they are satisfied. You can do this in a few different ways:
Thank you for the kind words.
Please show appreciation for their business by offering free shipping on their next purchase.
You will receive a handwritten thank you card with your order.
Customers who choose to support a small company positively impact the owners and employees of that business. This is a more personal experience, and customers will return to your store repeatedly when you let them know how much you value their business. Most people will choose a brand that acknowledges and respects their purchases over a big-box store that is anonymous.
Offer Special Perks
You know the appeal of this type of promotion if you have ever received an email that offered VIP discounts or a special deal for existing customers. A special offer for “insiders” will make repeat customers feel valued and increase the likelihood of buying again. Create a segment of repeat customers and offer them an exclusive offer. This can improve sales and retention in the short term.
While it is essential always to look for new customers, serving your current clientele pays off in many ways. You can reap the benefits of increased profits and ROI from returning customers for a relatively small investment.