In the modern digital age, customer acquisition and retention are two sides of the same coin – segmenting those who will spend online, and those who have spent online previously with you are all key cogs in the marketing and re-marketing process.
Before we delve into tips for getting repeat online business, letâ€™s consider for a moment why customer retention is as important as customer acquisition.
- Youâ€™re 60-70% more likely to sell to an existing customer (eConsultancy)
- 80% of your future revenue will be driven by 20% of your retained customer (Gartner Inc)
- According to Bain & Co, a 5% increase in your customer retention can increase your profitability by up to 75%
- Customer acquisition costs 5 times more than customer retention
So, what tactics and strategies can online businesses implement to ensure they target the repeat customer as effectively as possible?
Simply put, a rewarded customer is a loyal customer. Implement and execute a scheme which rewards customers with discounts, free shipping and that added bit of extra value. Remember, the switching process for customers is simple so adding more emphasis on the perceived value derived from your business not only differentiates you in a potentially saturated market, but by increasing loyalty you also increase profitability and gain yourself brand advocates.
Weâ€™ve all been on that one site where you choose your product and head to the checkout area to input your personal details, then your delivery address, then your email, then your card details, all before something inevitably goes wrong, you get fed up and look somewhere else. The trick here is to remove unnecessary barriers which hinder the sale. Invest in Checkout Optimisation and ensure that the steps through the purchase process are simple and streamlined. The more complex and convoluted the higher the abandon rate.
This is your chance to really WOW the customer – after the hard part of taking the customer through the purchase process, donâ€™t assume that your work is now done. Offer the most convenient options and ensure that you communicate with your customer at every stage along the purchase, including delivery. Provide tracking options and use a professional courier.
Social media users are always vocal about products they have bought and liked (and even more vocal if they received a less than perfect service). If you receive a positive comment from a customer then start a conversation with them by thanking them for their purchase and feedback and let them know about other similar products they may like. Use Twitterâ€™s list function to keep a record of happy, loyal customers and help target individuals who you know are fans of your brand.