When allocating budget to acquisition and retention activities, keep in mind that developing a new customer is much more expensive. According to Forbes, it is up to five times more expensive than retaining existing customers. This happens because new customers do not yet trust your business. It costs time and money to get their attention and even more to convince them to buy from you.
Implementing customer retention canadian cto cio email list resources and time. But it is worth it, as retaining customers has many benefits. It can increase long-term profitability and improve the perception of your brand among your target audience.
Increase in average order value and repeat customer rate
Not following up with customers to upsell or cross-sell more items and services is a standard mistake businesses make. These follow-up activities can increase the average order value and improve the repeat customer rate.
For example, a consumer came to you for a PSI (PageSpeed Insights) audit of a Magento store. Why not contact them after it’s finished to see if they want to place an order with Magento Google Page Speed Optimization or other related services?
Education Brand Advocates
Consumers develop a sense of loyalty towards goods and services when they frequently turn to your company. First, they start spending more on your products, which increases customer lifetime value. They then recommend your company to friends, family and acquaintances, expanding your customer base.
Reduce acquisition costs
Loyal customers often leave positive reviews, which also serve as advertising. These comments will surely attract new customers and you will be able to reduce acquisition costs.
7 ways to retain your customers
1. Offer material incentives: loyalty programs and coupons
If customers don't feel valued, it won't take much effort for them to switch to another producer or service provider. You need to nurture your customers and never take them for granted. Express gratitude by rewarding them for staying with you:
Offer discount coupons and bonuses when a consumer makes their tenth or thirtieth order.
Measure customer loyalty by how long they have been your customers. You might consider giving out more gifts at significant intervals, such as a year.
Set up a loyalty program. This way, customers will know that they will save more by ordering from you consistently.
Show them exclusive discounts via exit-intent popups to encourage them to visit even before they leave your site.
Sephora’s Beauty Insider program is one of the brightest examples of loyalty programs. Customers who participate in it can accumulate points for every purchase they make and redeem them for rewards of their choice, usually in the form of samples or exclusive products.