All you need to know about Customer Retention
Nowadays the acquisition costs of new customers are higher than the retention costs of the already acquired ones. Indeed, it is very important to not neglect the consumers you have, in order to increase their purchases. How? Through specific business actions to build loyalty. This marketing activity is called Customer Retention and will allow you to improve your customer experience, increase the profitability of your company and lead you to a true long-term success.
If you want to learn more about the customer retention strategy of your Shopify store, here there is an article for you.
In order to have a good level of Customer Retention your business must be able to encourage consumers to buy products and to prevent them from being fascinated by competitors. What are you waiting for? In this article you will find 7 useful strategies to increase the Customer Retention of your E-commerce.
1. Email, sms, Push notifications: three different communication methods
Email, sms and Push notifications are three different communication methods that will allow you to implement your customer retention. They can be used for win back campaigns, that refer to all those customers who have not made purchases from your shop for a while. Let’s check them in detail:
- Emails help you to better explain the contents, initiatives, commercial promotions and events. The intention is to stimulate the reader’s interest. There are software and platforms such as Hubspot or Klaviyo that allow you to automatically send these emails and show how much revenue comes from each email campaign (Klaviyo, in particular).
- SMS messages are the simplest and most immediate tool to communicate something to a customer, as long as the text is direct and explicative. With a text message you can build loyalty or engage with new ones. There are specific portals and software that allow the automatic sending of messages from a computer.
- Push notifications are digital messages that are automatically sent to the user according to the actions they take. They have several features such as a short and informal text, they appear on the screen as notifications that can be read without necessarily opening them and reach only those who have downloaded the App.
Through specific campaigns pursued with emails, sms and push notifications, the customer retention rate can increase significantly, leading to an increase in sales.
2. Personalized email marketing
Emails facilitate the process of building the relationship between the user and your brand throughout the entire purchase phase. You always have to court the customer, communicate confidence with personalized messages and sometimes provoke to ensure that it is not fascinated by the competition.
Personalized email marketing is definitely a strategy for you! These are personalized emails that propose new products or offers based on consumer interests by looking at what they have bought or their abandoned cart. You will also be able to celebrate their achievements, such as birthdays or anniversaries with your brand, by offering exclusive promotions or reward them for activating a loyalty program. And how often can you send these emails? You are free to choose!
Among the tools that can help you there is Shopify Email. It is an email marketing service that provides you with the right means to build lasting relationships with your customers and, consequently, bring more profit to your brand.
3. Loyalty programs
This strategy is very effective in increasing the frequency of purchases and, at the same time, rewarding customers who already make them. This creates a win-win exchange in which both parties get a benefit.
The real goal of this strategy is loyalty. A loyal customer is worth much more than a new one and costs less. Why? A loyalty program:
- Increases the satisfaction of customers who have already been retained because they will receive prizes, gifts and benefits that you have planned for them;
- Entices your new customers to buy from your e-commerce again.
You can keep your customers’ engagement level high by giving points to purchases and offering concrete benefits such as discounts and promotions. In this way people are more motivated to buy from your store than a competitor’s one with the aim of having a specific reward.
Among the tools that cannot be missed in order to help you build your perfect loyalty program there is Growave. This is the all-in-one marketing platform that helps Shopify companies to reach audiences, engaging them and easily increasing conversions. Don’t be unprepared! Boost the relationship between the consumer and the company, increasing customer purchases and customer engagement thanks to points collections and VIP levels on your Shopify store.
4. Subscription Program
Having a monthly or annual subscription will stimulate customers to buy from you and, at the same time, this will ensure you a certain income. So what could be a winning strategy? Offer exclusive plus for which people will be more entice to pay the subscription program. Now, i’ll give you a very concrete example.
Amazon Prime, at the cost of £ 79 per year or £ 7.99 per month, allows its subscribers to have unlimited deliveries in 1 day on 2 million products and in 2-3 days on millions of other products. It gives access to unlimited movies and TV series on Prime Video, as well as Prime Music and, also, gives you an early access to Lightning Deals and much more.
5. Customer Service
Having a careful, accurate and fast customer service is important to solve unexpected events, help consumers to make a correct purchase and communicate effectively with them by offering appropriate support. How can you do it? Here are some tools:
- The Whatsapp Business app: it allows you to give visibility to your products and services, interact directly with customers and answer their questions during the entire shopping experience;
- A Live Chat service: it helps you to assist customers during the entire purchase phase: from pre to post sales, up to the management of complaints. Furthermore, you can easily ask for feedback on your service and talk to your customers.
Another important aspect to consider in order to improve the customer retention of your e-commerce is to offer an accurate, reliable and punctual delivery service. Actually, having damaged and delayed packages delivered will certainly create reputation problems and loss of customers. The solution is to choose reliable shipping services. The outcome of a delivery has the ability to generate good or bad feedback and reviews that will affect the reputation of your business.
6. Corporate Social Responsibility Program
The corporate social responsibility is a business policy that combines economic, social and environmental objectives in oder to help the sustainability of the natural and human territory for present and future generations. Specifically, this concept concerns not only the quality and safety of the product, but also the protection of the environment and health, the energy saving and the correct advertising information.
The corporate social responsibility is a solution that is spreading more and more among small and large companies to increase their customer retention and, consequently, their sales. Precisely because today people are more careful to what companies do, they want to deal with shops and businesses that have specific values and moral, ethical or social objectives.
Did you know that:
- 93% of consumers are more loyal to companies that undertake corporate social responsibility activities;
- 90% of consumers would stop buying products from companies that have deceptive and irresponsible behaviour;
- 66% of consumers worldwide are willing to pay more for products and services from companies committed to social and environmental sustainability.
And how can an e-commerce be more socially committed? You can start with the packaging, making it more sustainable: for example, you can use recycled or recyclable materials to reduce the environmental impact.
7. Develop your App
If you’re wondering how to increase the customer retention with an app, well, here there are some steps you can implement in your marketing strategy to achieve this goal:
- Create a direct marketing channel that will increase the customer engagement through push notifications: these are automatic digital messages that can also be sent to the user directly by the merchant;
- Offer a better mobile experience; the app is a faster tool to access that can be customized according to the needs of consumers;
- Offer exclusive content and promotions only on the app;
- Reward your customers for interacting with the e-commerce app with loyalty or VIP programs, for example through points that will give them exclusive discounts.
If you want to learn more, I leave you here an article that you will surely find interesting: click here!
Did you know that:
- The conversion rate of the mobile App is 3 times higher than the website one;
- The average shopping cart on the App is 140% higher than on the web;
- Mobile apps have 80% of repeat customer rates;
- Cart abandonment rates are 20% from the app, 68% from desktop, 97% from mobile sites.
Now that I have told you about these steps and you have seen for yourself how concretely the mobile app can improve the retention of your e-commerce, I suggest a simple and immediate solution. Shoppy provides you with a series of tools to increase the customer retention, engage your users, grow the community and increase your sales in a simple and consistent way.
The best Shopify brands are developing their mobile app and this will help them to increase their customer retention rate. What are you waiting for? Follow them too! Shoppy.
The growth and success of your e-commerce are not only linked to the customers you have yet to reach but, in many cases, the customers already acquired can be more important and useful than the new ones. Improve your sales starting from a good level of customer retention. Try it!