Winning new customer is good for business growth and sustainability. Equally, as good is retaining existing customers and customer retention brings several benefits with it. Statistics show that the possibility of selling to a returning customer can reach up to 70%. Moreover, almost 80% of business revenue will come from these customers whereas new customers might give you around 20-30%.
The best part about customer retention is that once you have recurring customers in the loop, they will give you valuable input on improving or launching new products. Therefore, customer retention is one aspect that no business would ever overlook.
Considering the value of retaining customers for retail businesses, here are some effective strategies that’ll greatly help your business in retaining customers:
- Deploy Smart Retention Techniques
Naturally, a satisfied customer will not only return, he/she will also help market your products to other customers looking for similar products and bring them to you too! Why do your customers come back to you? You’ve got to figure it out and develop the right strategy around it. For example is it price, service or your store look and feel? Asking the customer is always a great way to start. It will give you first-hand knowledge based on which you can develop your business retention strategies.
- Money Saving Strategies Enhance Customer Retention
The first thing to ensure customer retention is to know what customers look for while buying. The key to most shoppers buying is saving. In fact, you’ll see customers repeating this popular mantra too often. Why? Because they either seek financial independence or have other financial goals, they may be saving money. Money saving also allows them to stay within their financial means and never get burdened with unmanageable debts. In either case, customers always prefer buying from stores that help them save. Additionally, to ensure saving, they look for a coupon, deals with best offer available in reaching their financial goals
- Develop Customer Loyalty Programs
Acquiring a new customer is by no means easy but to retain one can be more difficult. Retail businesses have to work day in and day out to find and retain customers. Moreover, winning their trust can be a time-consuming and expensive affair, so why not look at developing a strategy something that works. This is where a dynamic customer loyalty program can help your business with customer retention. A good customer loyalty program will surely help your business in retaining customers, provided it is a quality loyalty program. Customer loyalty program offers promotions, prices, and exclusive products in exchange of asking the customer to make repeat purchases. In other words, a CLP is all about rewarding your customers for being loyal to your business.However, you must ensure not to base your customer loyalty program on discounts. Doing so will not attract desired customers and might even drive away existing ones.
- Personalized Retention Emails
If you hear someone claim that emails don’t work anymore, don’t pay heed. Yes, the junk mail has increased but despite that, almost all businesses, big or small, communicate through emails. For this reason, email marketing remains a pivotal marketing tool and will likely do so for many years to come. Recent research suggests that around 80% businesses rely on email marketing to maintain customer retention. Almost 63% emails are deleted before they are read, sending retention emails remains the most effective way to reach your customers.
Using personalized retention email to attract customers will do wonders to your retail business as personally they addresses the customer. By making them realize how important they are to your business, you are in fact making them feel closer to your business. Likewise, addressing their specific needs, promoting new products and asking for feedback will only bring them closer to your business.
- Make Repeat Purchase Easy
e-commerce retailers knows better about the benefits of simplifying repeat purchases. In fact, faster repeat purchasing is one of the prime reasons why customers prefer buying from their preferred stores. There is no denying that a simple and fast repeat purchase can greatly enhance your customer retention rate. Studies have shown that repeat customers spend up to 67% more compared to fresh customers. Considering how Amazon’s One-Click is a great example of repeat purchase as it provides the easiest option for returning customers to make payments online. Truthfully, customers don’t care how their payments are processed. All they care is to buy the product, make the payment and have the product in hand.
- Use Customer Feedback
Once a customer buys from you, follow up for feedback. The feedback can be an invaluable source of information that tells you if your product is fulfilling customer’s expectations or not. In other words, the customer feedback serves as the ultimate litmus test that will educate about the user satisfaction of otherwise of your product and service, and will help you adjust and improve accordingly.
Adding a customer survey can help you better understand your customers. In the longer run, it will allow you to offer them improved, more valuable products. Make sure your form doesn’t become long and boring so keep it pertinent to customer experience and ask for recommendations/ improvements.
- Professional Service by Professional Staff
Customers would prefer to deal with staff who are professional and knowledgeable. They prefer to shop in a store where the staff are friendly and helpful. Yes, they will shop where staff are able to provide them with useful information that would assist them in making informed purchase decisions. Blessed is that retail business that have them, for great shall be their reward. With great in-store customer experience, who would not want to return?
- Add A Great Call To Action
Lastly, add a great call to action, to sum up, your piece and entice the customer to take immediate action.
Try this customer retention enhancing tricks and see how your retail business gets noticed. In time, your effort will pay off, and customers will take note of your endeavours and reward you handsomely.