It is undoubtedly easier to get past customers to re-purchase from your store than it is to sell to new customers and cheaper, too. According to a recent statistic by Lee Resource Inc, it costs on average five times as much to acquire a new customer than it does to retain existing customers, yet hardly enough focus is stressed on the importance of customer retention. As discussed above, not only is the cost of retention significantly cheaper than acquisition, but it is much less time consuming for you to entice your existing customers back to your E-commerce store than it is for you to devise and execute a marketing strategy in order for you to only potentially gain new customers. Having more time will allow you to focus on your existing customers, building strong relationships with them that will in return have your customers championing your products and services over your competitors. This is particularly effective for word-of-mouth marketing, meaning not only will you strengthen your relationship with your existing customers, but you will also be gaining new ones two birds, one stone! We have put together our top 3 customer retention strategies that are sure to keep your customers coming back for more.
1) Implement a Customer Loyalty Program
Rewarding your customers for their repeat purchases is a great way to increase customer conversion rates. Showing your customers that they will be rewarded for showing loyalty to your store, by offering members only discount codes or providing them with early access to your sales, you are showing gratitude to your customers for choosing to purchase from your store rather than a competitors. Some great Shopify applications for customer rewards include Klaviyo E-mail Marketing and LoyaltyLion.
2) Follow-up With Your Customers
By doing something as simple as sending a follow-up e-mail to your recently acquired customers, you are showing the initiative to reach out and make your customers feel as if they have made a valued contribution to your store. Whether it's simply thanking them for making a recent purchase, asking for their feedback on your products or services, or offering a small discount on their next purchase, following-up with your customers is the key to ensure customer value. If you find yourself too busy to contact each of your customers individually, automatically sending a thank-you e-mail after each purchase could be your solution here.
3) Use (But Don't Abuse!) Your Social Media Accounts
It is now easier than ever for you to connect with your customers via your social media accounts. Remember, your social media following has liked or followed your page because they want to engage further with your brand. Once again, rewarding your followers for this behaviour by posting exclusive discount codes, for example, is a wonderful way to keep your customers interacted with your brand. Whilst daily social media management can be quite time consuming (one of the many reasons why Shopify Builder offers this service), it can also be vital. If a potential customer of yours has landed on a social media profile that hasn't been updated in a month or so, you are going to seem inactive and unreliable, and your potential customer may look to purchase elsewhere so discover how to improve your Facebook reach. So, what have we learned? Showing gratitude to your existing customers will not only keep them coming back for more, but will also help you gain new customers through referrals and word-of-mouth marketing the most powerful tool your store will have.