eCommerce websites have two types of customers they want to reach – new ones and old ones. The new ones allow them to grow their business, while the old ones allow them to stabilize their profits and set a stronger foundation. If you don’t work to bring back your old customers, you won’t see the gains you’d like with your new ones. Therefore, it’s vital that you try to raise your customer retention rates.
However, this is just one reason to focus on customer retention rates. Did you know that it typically costs five times more to bring in a new customer than it does to return a customer? Or that repeat customers typically spend 33 percent more than new ones?
Focusing on your customer retention rates is one of the best things you can do for your eCommerce website, but it’s not always easy to know where to start. Below are some simple strategies you can try that should increase your customer retention rates when fully implemented.
A great way to bring back old customers is through a targeted email marketing strategy. This means sending emails to previous customers specifically designed to bring them back to your eCommerce website again.
To do this, you first need to collect email addresses from your customers. The easiest way to do this is by asking for their email address when they complete a purchase. Just be sure you alert your customers at this time that you may send them promotional emails in the future.
Once you have their email addresses, you need to send them relevant content. This requires analyzing their previous purchases and sending them emails that are related to them. For example, let’s say you sell cosmetic supplies.
If a customer purchases a skin cream, you could send them an email in the future when you’re having a sale on that cream. This is especially useful if you have information that the customer is a repeat buyer. You can also send them promotional emails about similar products they may enjoy based on their purchase history.
Many people check their email accounts every day, so this remains a great way to reach them. The key is to send them emails that will interest them if you want to bring them back to your site.
Improved Customer Service
A customer’s experience plays a significant role in whether or not they return to a business. If they have a poor experience, either while buying a product or with the product itself, they are less likely to return in the future.
Therefore, one aspect you should focus on is improving your customer service experience. By providing excellent customer service, you can turn a poor customer experience into a good one.
One way to do this is by adding a live chat feature to your website. It lets customers instantly connect with a customer service representative and have a conversation with them. For instance, you could add WhatsApp chat on the website, allowing customers to join a chat room with your customer service representatives quickly.
They could then ask questions about your products or get any assistance they need. Of course, if you have a lot of website traffic, you may need to hire additional customer service representatives to handle the increased load, but the bump in customer retention will likely be worth it.
Social Media Contests
Social media is a powerful tool for both generating new customers and bringing back old ones. To bring back customers using social media, you need to get your customers to follow you on your various social accounts.
A simple way to do this is by including links during the checkout phase or even providing a discount for those who follow you. Once you have more followers, a good way to keep customers is by holding contests. A contest on social media is a great way to engage your current followers and get free publicity.
Here’s how it works. You first pick a prize as an award. Then, to enter the contest, all the things someone needs to do is share your social media post with their followers. Previous customers will enjoy the chance to win a prize, and you’ll get free marketing by having your message shared exponentially.
To run a compelling social media contest, you may need some social media management software tools for your business. These tools will allow you to manage your different social accounts in one place and accurately track your contest entries.
It would be best if you also were sure you are offering a prize that is enticing enough for previous customers. Try to provide one of your most popular or expensive products, as these are what your previous customers want.
Create a Mobile App
Making it easier for customers to complete a purchase is one of the best things you can do to bring back previous customers. If a customer has to go through many hoops to buy something, they are less likely to want to do that again in the future.
An excellent way to make things easier for your customer, and improve brand loyalty at the same time, is with a mobile app. If you can get users to download your app onto their smartphone, they will repeatedly see your brand name every time they use their phone.
Then, when they need to make a purchase, they are more likely to think of your eCommerce store. Developing a mobile app isn’t too complicated and is a great way to improve your customers’ experience.
Implement Customer Loyalty Program
Finally, look into implementing a customer loyalty program. This is a program that rewards customers each time they shop with you. You’ve likely experienced one of these loyalty programs for yourself.
Think of your local coffee store, which gives you a free coffee after your tenth purchase. It offers customers a small incentive to return, which is sometimes all they need to become a recurring customer.
To implement your loyalty program, think of a reward you can offer your customers. For example, you could give customers points based on the amount of money they spend, then allow them to turn those points in for rewards.
The key to a successful loyalty program is finding a balance between enticing rewards and making sure you are getting enough value from the return customers. It may take some trial and error to find the right balance, but the long-term benefits are often worth it.
Focus on Customer Retention
Raising your customer retention rates, even a few percentage points, can significantly impact your eCommerce website. Doing so would mean you don’t have to spend as much time working on getting new customers and your profits would become more stable.
Luckily, raising customer retention rates doesn’t have to be too difficult. Start with the above suggestions, then analyze your results. Stick with what works, gather feedback from your customers, and make some adjustments. If you stick with the process, you should see a rise in your retention rates not before long.