The goal of retention marketing is to engage current customers so that they are more likely to buy from you again and tell others about your business. In contrast, acquisition marketing involves acquiring new leads and converting them into customers.
SuperOffice surveyed customers to find out the top three reasons why they leave companies:
The company isn’t interested in them, they believe.
They are unhappy with the service provided by the company.
A competitor lures them away.
It’s easy to understand why an effective customer service strategy as well as a nurturing process are essential to retention marketing.
Here are some key tactics you can use to increase your online store’s customer retention rates.
7 key retention marketing tactics for ecommerce merchants
Adopt these seven effective retention marketing tactics to create a customer retention strategy and increase customer loyalty.
- Plan your communication schedule
Communication calendars differ from editorial calendars in that they tell you when and what to do to keep in touch with customers.
Sending postcards or surprises to loyal customers may be within your reach according to your company’s budget, but emailing is often the most cost-efficient way to communicate.
After a customer’s first purchase, it is imperative that they remain in touch with the company. People who shop online check their email inboxes frequently to see if any new discounts or specials have been announced by their favorite stores.
Your ecommerce store needs to build a list and use email marketing to stay competitive. Email marketing has yet to prove it can outperform other platforms when it comes to making a sale, particularly.
Beyond allowing you to encourage repeat purchases, email marketing can improve your relationship with your customers.
According to a study by Accenture, 33 percent of customers who abandoned a business relationship last year did so due to a lack of personalization. Thus, please segment customers according to their demographics, preferences, and interests.
You can send the following types of email to your list to keep customers engaged:
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Business updates.
Creating campaigns and promos they’ll love.
Content available only to subscribers.
Your upcoming launches: a behind-the-scenes look.
Lookbooks, inspiration, and product showcases.
- Track the right metrics
Your retention marketing efforts will be more successful if you monitor the right metrics. The following metrics are worth paying attention to:
The repeat purchase rate tells you how many customers have bought from your brand more than once.
The customer lifetime value (CLV) reveals how much revenue your company earns from one loyal customer after they become a repeat buyer, similar to the repeat purchase rate.
Visitors who return to your website – Knowing the number of returning visitors can help you determine how often your brand is being engaged with. A return visitor may indicate a non-customer who is likely to make a purchase – or a returning customer who wishes to make another purchase.
- Prioritize customer service
According to a study by Aberdeen group, businesses that provide consistent customer service quality across multiple channels stand a better chance of retaining 89% of their customers. A customer who failed to provide consistent customer service quality could only retain about 33% of customers.
Creating a customer service guidebook or playbook that explains how to handle a variety of scenarios will help you keep customer service high-performing. In addition to frequently asked questions, this playbook may include recurring requests, such as refunds and exchanges.
Additionally, it is of utmost importance that your customers are able to contact you easily. When needed, this might mean being accessible through email, social media, or even by phone.
Make sure all your social media profiles, website, and product pages clearly display your contact information. Make sure it’s in a prominent place so it’s easy to find.
- Mobile-optimize your website
It might be impossible for your customers to buy from you if your ecommerce store isn’t mobile-friendly. The mobile experience plays an important role in retaining customers, so be sure to use themes and tools that allow you to customize it for mobile.
Consider making your online store available as a mobile app. Your customers can be met where they are with a dedicated app that gives them a seamless experience.
- Make return options flexible
It might not be possible for your online store to have pop-up stores or physical locations your customers can visit. As a result, customers cannot try on or handle your products to determine their quality or texture.
Make sure you have a flexible return policy so your customers feel comfortable purchasing from you. Give them as many options as possible. Make these policies easily accessible so that customers can review them before making a purchase.
- With an irresistible lead magnet, you can convince non-clients to join your list
You can keep users engaged and make them return to your site over and over again if you provide a unique way to register and create an account on your site.
If you want them to sign up and sign in, consider offering them some exclusive, high-value perks. Could you offer them member-only virtual meetups or webinars – or perhaps additional features such as wishlist items or access to lookbooks for members only?
- Let your customers know what you’re doing
Does your business have a cause that’s close to your heart? Perhaps your customers do as well.
We’ve noticed a shift in customers’ expectations of brands in the past few years. Just having great products isn’t enough anymore. We must do good as well as have great products.
When you support causes you are passionate about as an ecommerce merchant, your brand becomes more meaningful to consumers.
Let your customers know how you’re supporting the causes that you believe in as a company.
This is exactly what Patagonia does. In their corporate mission statement, they state that they aim to create long-lasting, sustainable products that consumers can use for years on end. Fast fashion and consumerism commonly blamed for wastefulness and environmental decay are not what their business is all about.
Their Don’t Buy The Jacket campaign was their most successful campaign, which encouraged consumers to think twice about buying their products – a bold move, but rooted in a cause to reduce wasteful fashion purchases.
Retaining customers for the long haul
It is common for many businesses to treat customer retention as an afterthought, but this shouldn’t be the case for you. Utilize the steps above to develop an effective retention marketing strategy for your ecommerce store, and watch your business grow for years to come.