The Importance of Good Customer Retention
So you’ve managed to get the customer’s attention through outbound or inbound marketing.
The customer has made their way to your eCommerce website, obtained the information they wanted, and purchased whatever they needed.
Now, do you forget about this customer and focus on getting new ones?
Or do you make an effort to make sure that this customer keeps coming back to you in the future?
These and many more questions should flood your mind as an online seller.
Building a successful business goes beyond gaining new consumers. Customer retention is a vital kettle of fish too.
New customers are essential for business. But what’s the point of acquiring new consumers if you don’t know how to retain them?
The more loyal consumers you gain, the faster you can achieve your business goals.
Companies that increase customer retention rates by as low as 5% increase their profits by 25-95%.
So, how can you retain your existing consumers to grow your business?
Keeping your customer is a metric that determines customer loyalty, or the ability of your business to keep its customers for a long time.
In addition, knowing the number of customers who love your product or services, customer retention can reflect or know if your customer is satisfied through repurchase behavior, customer engagement patterns, and emotional ties to a brand.
Retained customers are more likely to buy more often and would like to spend more than newer customers.
They have understood the value of the product or service you offer, which will make them visit again.
This blog will examine why we should retain your previous customers at all costs, as repeat buyers are always more profitable than new ones.
Some of the importance of good customer retention:
1. It brings in referrals
If you want your customers to refer your business to their friends, family, and colleagues; you must have happy customers.
Customer loyalty is crucial in generating new leads and word-of-mouth marketing opportunities.
Always remember that the most loyal customers can also be tempted away by other sellers.
That is why you must keep them happy!
2. It means more profit for you and your business
One fundamental reason for setting up a business is to make profits; this can only happen when you have set the pace for your business to thrive.
Retaining your new customers and keeping the old ones happy could be a significant shot to try.
They would have developed trust for your services and products, which will make them return.
3. It gives you access to more data.
Regarding eCommerce businesses, data is crucial to understanding your current and returning customers better so you can cater to their experience more precisely.
The longer a customer stays with your products or services, the more data you’ll access, and the more you can learn from their shopping habits.
Identifying their patterns, demographics, and other important factors can help you create more effective marketing strategies for retention and acquisition.
4. It helps your business boost its average order value.
Return customers are the easiest way to increase your current average order value.
First-time customers tend to be more careful with their purchases, so having impressed customers come back for more, you can almost guarantee that they will add more to their cart/basket than they had previously.
The more return shoppers, the higher this average order value will be each time you measure your data.
Now let us look at the steps to improve or initiate customer retention.
Prompt and Reliable Delivery
When customers buy your product, they want to get it delivered quickly and in one piece.
It is one of the customer’s main concerns when buying a product online.
When they order your product, the customer can’t help wondering about all these things—ensuring that the product gets delivered intact and within the time allotted is the first step towards ensuring that your customer remains happy with your product and service.
It’s the first step towards online customer retention.
Convenient Exchanges and Returns
Another thing that customers are concerned about when they buy a product is whether it’s going to be possible to return or exchange it.
No matter how much information you give a customer about a product, they might still not be happy with it when they see it.
It might look or feel different. It might not be the correct size. Or the customer might find something else that they like better.
The customer should be able to return or exchange the product without any issues.
Make sure that your return policy is stated clearly on your website.
And just as you would provide a prompt service for selling and delivering an item, you also need to offer it for exchanges and returns.
Discounts and gifts
Shoppers love to feel appreciated, so when you offer them surprise gifts or special discounts, there is a very high chance that they will return and do business with you again.
Focusing on products they would already purchase is ideal, and adding personal touches like a message can help them feel valued.
You can create VIP-style lists or reward clubs and even consider vouchers for your store.
Keep Customers Informed and Connected
It is always right to keep the customers informed about updates on products or services.
When you take the time to educate your customers about changes, new product launches, partnerships, and company milestones, they will feel more invested in your business.
You can do this through email communications, newsletters, and social media.
In summary, customer retention:
Online or email surveys are an easy way to gain personal insight into your shopper’s habits, preferences, and shopping patterns.
While it’s impossible to please every customer, you can use customer feedback tools to highlight common issues and offer multiple-choice options to keep consumers focused on their most pressing problems.
Identify a frequency for sending out surveys and consider following up with those who participated to let them know you appreciate their input.
Taking the time to connect with your customers personally is critical to improving their experience and increasing conversions.
Consumers don’t want to feel like they’re just another dollar or pound sign to you, so offering personalised experiences can help them better perceive you and feel more invested in your success.
If your business is established and receives ten or more sales daily, it’s time to change it to a retention game!
You’ve already gotten the market’s attention, and you clearly have what people are looking for, so turn your attention towards keeping them coming back to you repeatedly!
As an online eCommerce business, you must understand the importance of loyal customers and customer retention strategies.
Measuring, tracking, and altering your key metrics can help prevent lost customers and reduced revenue.
It can be another way to ensure that you continue to receive patronage from your previous customers.
While customer relationships typically start with significant interaction, customer retention metrics reflect on the first purchase made by a customer and all subsequent interactions by your customers.
Once customer retention is determined, organisations can use this review to perform data analysis based on customer experience and customer success.
For example, an organisation can use this to help identify the root cause and adjust its product offerings if customer retention drops.