As the cost of acquiring a new customer is much higher than the cost of retaining an existing one, it is crucial for businesses to implement strategies to keep customers coming back to their store again and again.
3 ways to increase customer retention
Retaining customers has become more crucial than ever as it is more cost effective than acquiring new customers. In fact, according to inc.com it costs 5-10 times more to acquire a new customer than to retain an existing customer. Therefore, it is essential for businesses to implement business strategies to keep customers coming back to their store, whether it’s a physical store or online.
Here are 3 effective ways to help you increase customer retention.
1. Create a Loyalty Program
There are many reasons as to why you should start a loyalty program. One of the most important reasons is that it will help you sell more, for a much less cost than many other marketing strategies. A customer loyalty program makes it much easier to get customer back to the store, so that they shop again and again… and again. Having a good rewards program helps convert single purchases to repetition sales = increased lifetime value, which in turn will create more brand loyalty and revenue for your store.
Did you know that… the probability of selling to an existing customer is between 60-70%, while that of a new customer is only between 5-20%? (Marketing Metrics)
A loyalty program will also help you get crucial GDPR consent, so that you can easily analyze customers interests and purchase patterns. This will help you run more targeted, personalized, and relevant SMS and e-mail campaigns to again create more loyal and happy customers.
Did you know that… if you keep 5% more customers, profits increase by as much as 25% -95%? (Harvard Business School)
Customers appreciate stores that do their utmost to create a great shopping experience. Good benefits, offers and promotions can attract new and existing customers into the store. If you analyze what they buy and what they are interested in, you can create relevant campaigns based on customer behavior and preferences.
2. Personalized and relevant SMS and email communication
Personalized and relevant communication is crucial to help create more loyal and happy customers, and for driving sales and repeat purchases. You can use both SMS- and email marketing, and the best communication strategy is often to use both.
- SMS – marketing
SMS marketing is highly effective. According to Link Mobility, 90% of all SMSs are read within 3 minutes, 98% of all SMSs are opened, and SMS has a 209% higher response rate than emails or Facebook messages. In other words, hardly anyone leaves an SMS unread. This makes SMS – marketing the perfect tool to help get customers back to your store, to shop more frequently.
- Email marketing
Email marketing is a less effective marketing tool than SMS, with an average open rate of only 20%. However, in turn email marketing can be less intrusive than an SMS. As the frequency of SMS – marketing is 1-3 per month, email marketing can be sent as often as you find suitable for your customers.
Overall, this makes a communication strategy with both SMS and email – marketing the most efficient one when it comes to driving customers back to your store.
3. Exceptional customer service
Customers who receive good customer service are more likely to stay loyal to your brand and continue choosing your store over your competitors. Therefore, you should go above and beyond to meet their needs and resolve issues quickly.
