Here is an outline of some tangible ideas you can apply to improve customer retention. Remember you are in the people business; you need to make your customers feel good about doing business with you. Whilst it maybe your initial advertising that introduced them to your business it’s how they feel about the experience that will make them return. The best way to build a relationship with your client is why you are providing a service your next best option is to pick up the phone and have a conversation.
- Use customer accounts
Customer accounts can make repurchasing easier by giving you instant access to previous ordered as well as all the customer information. You can also leave notes in their account about what the customer likes and any information you have retained by talking to them. A good place to store this information is Xero in the customer contact.
- Start a customer loyalty program
Loyalty programs are an effective way to increase purchase frequency because they motivate customers to purchase more often in order to earn valuable rewards. This becomes a profitable exchange for both you and your customers: they get more value each time they shop, and you benefit from their repeat business.
- Send engaging emails to customers
Emails give you the opportunity to continue building a relationship with your customers before and after their initial purchase. It’s critical that each message you send adds value to your customers experience. If it doesn’t, you run the risk of losing them.
A great way to get started is with follow-up emails. A week after a customers first purchase, send them an email that acknowledges and thanks them for buying. This type of acknowledgement helps customers feel good about their decision to buy from you and makes your brand more approachable.
You can make this initial email even more impactful by recommending products that complement their initial purchase. Finally, you can even start including customer reviews as well. These endorsements will increase both the value of each recommended product and the customer’s desire to buy.
After this initial follow-up has been sent, you should make sure to send personalized messages regularly. Making additional product recommendations and sending invitations for upcoming sales and promotions for new products are great ways to keep the conversation going with first-time buyers.
- Offer a Discount or Credit to Return
Sending a discount code for a customer’s next purchase with a first time order is a great way to nudge them to come back. For this reason, discounting can also be an effective way to bring back customers that haven’t purchased in a while. You can strengthen that nudge by giving them more than the standard 10% off. Giving 20%+ is more motivating and according to Market Wired, once a customer comes back for a second purchase, they have a 54% chance of doing so again. When you think of that 20% off as an investment in boosting your repeat customer rate, it sounds a lot more reasonable.
Your current customer base is the best asset your store has. Customers already know your brand, they know your products, and they appreciate your service. Focusing your time and energy on improving the experience for this group as opposed to always trying to find new customers can be a powerful way to supercharge revenues for your store.
Cost of Acquiring a New Customer Compared to Retaining an Existing Customer
Did you know that it costs five times as much to attract a new customer, then to keep an existing one? The first rule of any business is to retain customers and build a loyal relationship with them, and thereby avoid customer acquisition costs.
Customer acquisition can cost up to 7 times more than selling to existing customers — while the probability of selling to a new customer hover around a mere 5 to 20 percent. Meanwhile, the likelihood of selling to an existing customer is between 60 to 70 percent. That’s quite the jump.
You can’t let existing customer relationships fall to the wayside. After all, data shows repeat buyers can be some of your biggest spenders over time, making up for around 40 percent of a company’s total revenue. The same report showed that repeat customers often spend an average of 30 percent more per purchase than first-time buyers.
It is hard for a small business to stay open within the Sunshine Coast especially Caloundra, as there are new small business popping up every few months. However, having recurring customers is a great way to increase your revenue as they make up for 40 percent of a company’s total revenue.
Your current customer base is the best asset your store has. Customers already know your brand, they know your products, and they appreciate your service.
Focusing your time and energy on improving the experience for this group as opposed to always trying to find new customers can be a powerful way to supercharge revenues for your store.