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Customer retention is important and businesses have the power to control that.

Customer Retention

01/11/2017 - Customer Retention

2 Minute Read

Customer retention is important and you as a business have the power to control that. Trying to get customers to return to your website is critical to expansion and growth.

There are many ways to control customer retention, for example, the checkout process needs to be simple but most importantly secure for the end user. Offers, discounts and free delivery are all incentives to try and make customers return. Offering a customer, a discount such as 25% off next time they shop online is critical and can make a huge difference. Only 20% of first-time customers return to the website again and this means you’re marketing your product to people who will never purchase the product or service again.

Customer Loyalty Cycle - Acquisition, Development, Commitment & Retention

Customer Loyalty Cycle

The transition from the first-time buyer to a regular customer is a hard one but it is worth it as second time buyers are more likely to become third-time buyers. Attracting first-time buyers is important, but nurturing the customer can lead to doubling your revenue and strengthen your brand. There are many tips that we here at BamBoo Smart Growth offer;

Assess how you spend your digital marketing budget

Many marketers will spend money and time on attracting first time buyers through platforms such as Facebook or email marketing, however, applying a small amount of this budget to use on customer retention will be worth it. To acquire new customers, it costs roughly five times more than to spend time retaining customers, as the time and money will be used focusing on the customer and how to pull the trigger on a second purchase.

Specifically, identify and target first-time buyers

As a company, you need to find and create a list of buyers who bought one time only. Targeting this group of people as a more detailed and select group of people make it much easier to design a marketing plan.

Create the specific campaign

A successful campaign will be relevant and personal to every user. If a man buys a T-shirt, he probably doesn’t want an email offering 20% off female shoes. Personalise the campaign to help secure the sale. To make it relevant do flash sales, on holidays such as St. Patricks day with a 50% two-hour sale. This helps make that second sale.

Ultimately customer retention is critical and one of the best factors for making sure these sales stay high.

“You don’t earn loyalty in a day. You earn loyalty day-by-day.” – Jeffrey Gitomer

Get in touch for a no-obligation consultation and together we can look to put in place a strategy that follows a customer’s journey that works for you and your business.

Lenny Davies
Director
BamBoo Smart Growth

By BamBoo Smart Growth - 01/11/2017 - Customer Retention

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