Acquiring new customers is expensive.
Research found that it costs businesses nearly 7 times more to acquire a new customer than retain an existing one. Plus, a 5% increase in customer retention can grow profits by 75%.
Customer retention is valuable: returning customers spend nearly 3 times more than one-time customers.
Start by satisfying your consumers’ needs. Understand their pain points and listen to their feedback. This will help your team enhance the online shopping experience.
Engagement is essential in creating a loyal customer base. By interacting with consumers, you will gain their trust and establish beneficial relationships.
So, how should you engage your customers? Use these examples to improve your customer retention rate.
Email marketing is an effective and inexpensive way to build relationships with your customers. Studies tell us that for “every $1 spent on email marketing, the average return on investment is $44.25.”
But sending the right message matters. Focus on emails that will teach your customers how to use your product properly or ask for their feedback for improvements.
Learn from the team at Quuu, a content curation tool. The company sends new customers a friendly welcome message and also encourages them to start using the product ASAP.
A simple email can build relationships with customers now, not later.
Social media support is helping fuel brand loyalty in social commerce.
Customers are not waiting on the phone to speak to your customer service representatives anymore. Instead, they are typing their concerns online for you and the world to see.
Socialbakers reports that “more than 80% of customer service requests on social are happening on Twitter.”
So, offer customer support on Twitter. Set up an account solely for answering questions, and tell customers your specific online support hours. PlayStation does this well. The company offers friendly and timely support.
To build an active content hub, identify your customers’ problems and create content that will offer solutions. Then, categorize the content.
Check out our Featured Resources. This one-stop shop offers our customers a wide variety of content, from success stories to ebooks to webinars.
Creating a podcast may be your company’s next customer retention strategy.
In a survey, 40% of respondents reported purchasing behaviors as a result of listening to a podcast. This gives companies an opportunity to educate and sell to their audience.
The best podcasts provide consumers with different perspectives. Host a show where outside experts can hash out interesting subjects. Also, invite customers on-air to offer their opinions.
John McIntyre can guide you in the right direction. His guest experts highlight a range of topics, including eCommerce marketing automation, copywriting techniques, and business strategy.
Honest feedback helps your company exceed customer expectations. It gives your team the chance to make improvements to the product or service.
The HelpScout team agrees that “unfiltered feedback from customers is a positive even when it’s a negative review. A bad or so-so online review can actually help you because it gives customers certainty that the opinion is unbiased.”
Strategize how to ask customers for reviews to build better customer relationships. These new insights will improve the shopping experience.
And for an added bonus, revenue may increase. Our data uncovered that more reviews influences consumer behavior to buy more. See how this fashion store asks for reviews:
“Online video streaming jumped 60%,” according to Nielsen’s Shifts in Viewing Cross Platform. This indicates that more people are enjoying the convenience of streaming.
Moreover, humans are social creatures. Real-time conversations offer people a way to build instant connections.
The live streaming app Blab lets users watch, join, and interact in conversations. It’s perfect for brands seeking to engage with customers in an informal environment. And it’s easy to set up.
Take a hint from Saba Sedighi, host of Social545. Create a conversation around relevant topics and encourage watchers to join your Blab live.
InReality reports that “46% of shoppers who use loyalty programs consider them to be important in their decision to purchase.”
Loyalty programs show customers how much you appreciate their business. It rewards their positive buying behavior. Learn what your customers like. Then, create rewards that will entice them to buy. Think: 10% discounts or exclusive swag bags.
Kuru has a nice rewards program. The footwear store lets customers earn points for writing reviews and referrals.
Focus on implementing strategies that will improve customer retention. Engagement is key to maintaining your audience’s attention. Try sending emails or starting a podcast. A simple content hub works well, too. To increase your profits, engage existing customers.
Schedule a demo with one of our marketing consultants to learn how Yotpo generates reviews and turns them into sales.
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