You are giving lots of efforts and commitment to gain new leads and to convert them into customers ( if we directly say into profit ) for your business. But give a reason what’s the point of all these endeavors. If your existing customer is not coming back to your store. They are actually turned into your lapsed customers.
Existing customers are just like a cherry on the cake. Who has the power to provide lots of benefits to your business.
In this blog, I am going to discuss some points that will help your business to increase the percentage of customer retention and to boost the strategies to win back customers. Therefore, this holiday season doesn’t forget to include these customer loyalty marketing tactics in your marketing campaign to increase your revenue.
Why it’s Important to Retain an Existing Customer?
As in my previous blog, I have already told you that to acquire a new customer its cost a business about 5-25x more than selling to an existing customer. And the existing customers spend 67% more than new customers.
This stats simply shows how important it is to regain the existing customer for any small and medium-sized business.
“It’s well said, customer retention, is the key for a successful business.”
The benefits of retaining an existing customer
- It’s easy to foster the existing customer
- Increases sales and revenue
- Requires Low Marketing Cost
- Motivates staff for the efforts and work
- Increases the chances of referrals
- The probability to cross-selling and upselling increases
- Improves brand reputation
- An existing customer provides feedback
Just look at the following holiday shopping stats of US, it might help you to understand why it’s important to retain a customer during the holiday season.
10 Ways to Increase Customer Retention
What’s the value of all the efforts and work to acquire a new customer, if they never come back to you???
It’s hard to accept the fact but, it’s true the eCommerce stores are facing problem in retaining their existing customer.
So, let’s start discussing the tactics which will help your business to convert a lapsed customer into a sales-ready customer and which will help your online businesses to enhance your customer experience this festive season.
1. Create a win-back Campaign Strategy
As we have discussed above, retaining the existing customer is cheaper than acquiring a new one. The existing customer had already purchased a product or service from your store. You have already established a relationship and trust level with your existing customer.
Therefore, to convince them for more purchase is easy. That’s why win back campaign strategy has a great impact on the companies bottom line. To create a win back campaign use customer data which may include their email address or phone number.
2. Email Marketing
The marketers use email marketing campaigns to entice new and existing customers and to convert them into conversions.
To briefly understand what importance email marketing holds you need to look at the email marketing conversion rates given below.
The benefits of email marketing campaigns
- Helps in enticing new leads and existing customer
- Increases customer retention
- Nurtures customer to purchase again from the store
- Through emails, you can stay in your customer’s mind
- Enhances brand awareness
- Strengthens customer relationship
- Increases revenue
The sample emails to win back old customers can be like the following one
To entice the existing customer to purchase again from your site you can also use landing pages which will include discounts and offers that you want to give to your users like the example given below.
You can make an email list of lapsed customers who have not purchased any product or service from your store from a long time. To encourage them for the purchase you can include offers/discounts and rewards in your emails. In the emails, you can also ask your old customers to subscribe to the newsletter to stay active and tuned.
Therefore from the above points, it’s clear that email marketing campaigns are a good option for building customer loyalty.
( Read our blogs related to marketing automation. )
3. By Improving the Customer Experience
Whether it’s an online retail store or eCommerce store increasing customer loyalty program is their ultimate target. One way to achieve customer loyalty is by improving the customer experience.
( If you want to know how to increase the sales of the online retail store then you should refer our blog Increase the Retail sales by Simple 10 Ways. )
One of the benefits of revamping customer experience is it helps in gaining trustworthy and loyal customers. Which ultimately strengthen the relationship between marketers and customers.
Remember the customers want to feel like an individual person, not like targets.
To revamp customer experience you first need to improve the quality of your staff. Which can be improved by providing them with advanced training.
If you are still in doubt why there is a need to focus on customer experience. Then you really need to see the conversion rates of different companies that invest in customer experience.
I am sure going after through the following conversion rates you won’t be able to stop yourself in investing customer experience strategies.
According to Gartner, by 2018, more than 50% of organizations will engage themselves to improve customer experience.
4. Through Coupons/Discounts/Rewards
One of the best ways to increase customer retention is by offering coupons and rewards to the lost customer.
As I have discussed in my previous blog, 8% of customers abandon the cart, due to lack of coupons and discounts.
Don’t let this number affect your sale, use coupon and discount to increase the number of returning customers.
( To know more what benefits coupons provide to marketers then you should refer our blog Why Users Abandon you and 12 Ways to revive from Shopping Cart Abandonment. )
Create win back offers for your old customers. The coupons/discount/rewards are used by many eCommerce stores to make their customer feel special. To make them feel like they are part of the family and not a target for them.
To inform the customers about the coupons you can use emails. It can be a plain text or text with enticing images or it can be a landing page.
Example of plain text including coupon is given below.
50-80% OFF on the Best Styles and Brands
Don’t forget customers always find coupons and rewards enticing and encouraging and they can greatly contribute to customer retention. Therefore, don’t forget to include it in your marketing strategy.
5. Social Advertising
Social advertisements play a vital role in revamping customer loyalty concept.
Through social media channels, you will be able to reach your target audience. There are a number of platforms the online marketers can decide the platform according to their needs and desires.
In the social media platform, you can have the opportunity to convince the customers about the offers, discounts and the rewards you want to offer them. It’s also easy to create scarcity in the mind of users through social media ads.
Social media enables you with the benefit of enticing and fostering your new and existing customers. Therefore, this festive season doesn’t forget to add social media channels to make it more joyous.
6. Try to Contact them through Calls
They are your customers so, it’s your responsibility to look after them. Perform actions according to their behavior.
If the customer is inactive from a long time, try to communicate with them through calls. Solve their problems and queries and make them feel free to give any suggestion.
During the call, you have an opportunity to attract them towards the coupon and the trending offers of your site.
But one thing I like to mention here is that don’t irk your customers by continuously calling. Make a call only when it is necessary and required.
( Know how to use SEO to boost the sale during this festive season in our blog 15 SEO tips to increase Holiday Festive Season Sale of eCommerce Store. )
7. Send them Messages
Customer retention can also be increased by offline messages. As nowadays, people are busy in their life. They don’t have time to go online and see what’s happening in the world. In this case, offline messages work as a savior.
In this way, you have the opportunity to provide privilege to your customers. Through messages, you have the chances to remain in your customer sight and mind.
As this is the season of holiday sale so, include holiday season content in your messages just like given one.
Therefore, don’t forget to include messages to revamp customer loyalty concept.
8. By creating a Customer Loyalty Program
Ok, do you know or do you have any idea “what is the purpose of loyalty programs?” If not then read the following lines.
The purpose of customer loyalty programs is to influence the customers towards more and more purchase of products and services of your company.
The loyalty program basically, helps in increasing client retention, brand awareness, improving conversion rates, and enhancing customer loyalty.
The loyalty program helps you to engage yourself with the inactive customers. By including customer loyalty program this holiday season for the two biggest sales days, that is Black Friday and Cyber Monday will help you to boost the sale.
( For more loyalty program conversion rates and to know how to use social media platform for loyalty program refer our blog How Social Media Can Enhance Loyalty Programs. )
Related blog- A Perfect Road To Your Loyalty Program: Analytics
9. By asking them for the Feedback
If you ask for the feedback you will be able to recognize the problem and queries of your customers. This will help you to understand why the customers are not coming back to your site.
Ask for the feedback of customers in emails and in social platforms. The feedback will definitely help you to regain lost customers.
10. Creating Scarcity about Brands/Products
One of the ways to increase client retention and to boost sales is by creating scarcity among the customer. Scarcity creates a sense of urgency in the customer’s minds about the products and services.
Scarcity will also help in enhances brand awareness. Marketers create scarcity through emails, landing pages, social ads and by advertising on tv. And if you want to know what are the ways to create scarcity then please refer our previous blogs.
You can create scarcity just like the below example.
The Final Words
Enticing new leads, converting them into sales-ready leads and then retargeting the existing customer to purchase again, it’s a complete cycle. Each step requires attention and nourishment. The marketing campaign is incomplete is any of the steps are missed.
In this blog, I have discussed the points that will help your business to increase customer retention and to enhance customer experience. This holiday shopping includes this marketing campaigns for your business and increases the revenue.
Share your comments if you find this blog post informative.