Customer retention is something incredibly important for your business. First of all, return customers generate the majority of your profit. About 8 percent of all return customers generate about 40 percent of your entire profit. Second, it costs you five times less to make a customer return than to convert a new buyer, which speaks volumes on its own. Lastly, return customers are the best brand ambassadors. Now, that we’ve made clear just how important it is to keep your customers, let’s discuss several strategies that will allow you to do so.
Positive customer experience
The first and most important thing in improving your customer retention lies in improving your customer experience. Why do people come back to your business? Well, most commonly, it’s because they’ve had positive previous experience in dealing with your business. Sometimes, this is related to how skilled/friendly your staff is. At other times, it’s all about the transparency or the value that they’ve managed to get out of the last interaction. For the latter, both cross-selling and upselling techniques can be quite useful.
Don’t push for hard-sell
For every customer, it’s incredibly important that they feel like they’re the ones in charge. What this means is that you should never push for the hard-sell. Think about it, the very fact that they’re in your e-store or in touch with your business means that they’re interested in your offer. Have some confidence that, when left on their own, they’ll make the right call. Remember, you’re merely there to help them, not choose for them. As long as you act like it, you shouldn’t have any issues retaining customers.
Stay in front of their eyes
Sometimes, in order to stay in the minds of your audience, you need to stay in front of their eyes. Now, one of the simplest ways to do so is with the help of promotional merchandise. Look for a printing agency and make some branded products that you can hand out to your audience. This way, they’ll constantly have your brand colours, patterns and logo in front of their eyes. When looking for the right printing agency to outsource to, you shouldn’t just look at the cost but also at techniques like laser transfer paper and the quality of their end products.
One of the things that a lot of businesses ignore, yet, may make a huge difference in the effectiveness of your customer retention is the so-called post-sale-follow-up. Sure, they’ve just bought from you, which might mean that they’re still not ready to make another purchase. Nonetheless, this doesn’t mean that they don’t want to hear from your business, at all. Make some effort to reach out to your customers, send them an additional offer, thank them or even send them a digital receipt. Either way, stay in touch.
Lenient refund policy
Another thing you need to consider is your refund policy. As we’ve mentioned in the introduction, no one purchase (regardless of its value) can make up for a loss of a potentially regular customer. This is why you need to have a lenient refund policy and always offer your customers their money back. Otherwise, you either lose them for good or even earn yourself a negative review. The majority of those who get their money back (even if they’re incredibly dissatisfied with your product) will feel no need to leave a negative review. Also, this leaves some room for future returns and conversions.
The very last thing you need to understand is the importance of adequate feedback. If the customer is returning to your enterprise over and over again, you need to know why. If they no longer want to do anything with you, you want to know why just as well. So, ask a few questions as they’re exiting (in physical or digital form) but without being too imposing or impolite. Sometimes, the answer that they have for you may help you revolutionize your business. With this feedback and the above-listed five tips on your side, you just can’t fail.