We would have read umpteen blogs and articles on how acquisition is important to any retail business, especially retail. Of course, we do agree that acquisition is far more rewarding and satisfying. But did you know “retention” is where the money is? Retail business companies today target more on customer retention than acquisition. Here’s a fun fact: Customer retention costs between five and twenty five times lesser compared to acquisition. Now tell us, which one is your best bet?
So what is customer retention all about in retail companies?
Customer retention is basically the ability of the retail business to acquire new customers and retain them for a longer period of time. In other words, it also helps you determine how satisfied your customers are with you and how likely they are to come back and make a purchase with you. Here are some interesting strategies you can incorporate in your retail company to increase customer retention:
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Loyalty benefits and rewards
Customer loyalty program is one of the proven methods to increase your customer retention. There are a number of ways to incentivise your customers to make them be your permanent customers. It has been found that almost a whopping 65% of customers increase their purchases with you if they’re given relevant rewards for being your customer.
Giving them special discounts for making a purchase with you is a sure fire way to make them visit you again. More so if you are in the apparel retail industry. That said, you will also get to know your customers better with their previous purchases and you can personalise your product listings just suitable for them. More on personalisation below.
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Personalisation
Personalising customers’ pages work like a charm. One way to understand your customer needs and interests is by taking a look at their history of purchases. Another important and prominent way to know the likes and dislikes of your customers, where (products) they’re spending more time to know more can be achieved by using Cookies.
Cookies is an important technology that retail companies cannot thrive without. Deploying comes with bountiful benefits for both the customer and you. Customers cannot be happier to easily access what they like and you cannot be happier for increasing your retention rate. You can also personalise your messages to customers based on their interests.
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Seamless customer care
One of the best ways to increase retention is by being more proactive with your customer support. Your customers are nothing but the extension of your own brand. They should be responded with efficacy and speed.
Making your customers wait for you to get back to them will only turn them off. It has been analysed that almost 90% of your customers will not repurchase with you, if you offer poor customer services. So it is important to have prudent and proactive people in your customer care team to increase retention rates.
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Goodie bags with every order
Giving away products to your existing customers is an easy way to retain them. This will not only make them reciprocate your gesture by shopping with you but also view you as a customer-centric company which is much more important today.
Let them know by giving them goodies about the new products you’re about to launch, etc so they will have an idea of what’s happening with you. This will make them visit your online store more frequently.
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Try before buy
We are pretty darn serious when we say this. Let your customers try your products before they buy them. We know this can be a bit of an operational hassles, but the benefit this brings in is tremendous.
The one main concern people have when they shop online is “I don’t know how this product is going to be.” More so if your company is an apparel one. We repeat, let your customer try your products before they actually buy them. Also, provide easy return and exchange policies so there’s an opportunity for them to communicate with you. More on how communication is important for retention given below.
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Referral bonus
Referral bonus kind of comes hand-in-hand with the loyalty and reward program. Help your customers reap bigger and better benefits when they make their friends and family shop with you. Offering relevant referral bonus is one of the proven techniques in increasing customer retention.
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Start communicating
Communicating with your customers through exciting newsletters is one of staying in touch with them and letting them know what’s new with you. That said, that is not the only way to communicate with your customers.
Come with online contests and challenges on your social media handles and make them participate. Announce exciting offers and giveaways for the winners. This will not only encourage them to communicate with you but also instill a community among the fellow customers.
