5 Steps towards increasing customer retention in E-commerce: Rapid's Strategies
March 08, 2021 at 05:00 pm
According to Kolsky, attracting a new customer is 6-7 times more expensive than retaining a current one. This should come as no surprise to any serious marketer. Acquiring customers is a difficult task. However, once those customers are acquired, losing them is not difficult at all. The marketplace is filled with thousands of options for any given consumer. Switching brands has never been more commonplace or easier for the end user of a product or service. The upside is simple to acknowledge but difficult to put in practice. According to Bain, a 5% increase in customer retention can produce 25% more profit. Since we know what an increase in customer retention can do for our bottom line, how do we increase it? Funny you ask, because we are about to lay the foundations towards increasing customer retention for you right here, in 5 easy steps.
1. Make sure your post-purchase funnels are well set up.
Make sure that you are setting up proper retargeting campaigns for your customers once they make a purchase from you. This could mean using a service like Adroll to market to your customers once they have been on your site and agreed to have their cookies tracked. Also, spend a lot of time creating proper Email Marketing funnels. Email is the best channel for ROI purposes. For every $1 invested in email marketing, the return is approximately $40. It's the biggest ROI tool out there for any marketer, and it is not discussed properly in today's marketing landscape. However, when creating the email funnels it is important to segregate your audiences properly and making sure other items such as your IP reputation score are in order to ensure high deliverability. Services such as GetResponse, Mailchimp, and Klaviyo can ease the process with which you setup email marketing campaigns.
2. Map out your customer's journey and understand where conversions can be made.
Your customer's journey is unique and complex. The process of understanding how you acquire customers is crucial to understanding how to retain them. Customers might be coming from different sources, so it is important to understand how they arrived at the decision of buying your product. Conversions are not always purchases, they are also info submissions that you can use to personalize your marketing strategies, downloads for high value content offers (more on this later), clicks on your emails and display ads. Data is crucial in this step! Make sure that your website is integrated with an analytics software like Google Analytics, start to understand what kind of traffic is being driven to your website. Get into the minutia of details that the data can return back to you and scan your customers before they make a purchase. Draw out the steps they make and reward future audiences for taking the same steps.
3. Content is the name of the game, especially for e-commerce.
Any marketer in the online space should be well aware of this. It doesn't matter whether you are selling a service to other businesses or a subscription to direct customers, you need to create original content in a consistent manner. High Value Content Offers (HVCOs) are what you want to be giving your customers. What is that? HVCOs are a strategy related to content marketing in which you provide your customers with content that they will find useful and engaging. For B2B marketers this could mean a cheat sheet, a quizz, a brochure, an ebook, etc. For B2C marketers this could be a video demonstration of your products, a lesson related to your offer, and many other things. Get creative! These offers work like a free product you are consistently bringing to your customer's attention to keep them engaged with your brand. Over time, these HVCOs will create large returns.
4. Provide exceptional Customer Service.
This is a big one. Customer service interactions are decisive to the success of your retention rate. After every single customer service interaction there is a risk of losing your customer to the competition. Take time to think about the customer experience and how they engage with your company. Are you providing the customer with every possible channel to get in touch with you? If not, this should be a priority. Omnichannel support relates to process and providing seamless customer service experiences to your clientele. Beyond process, it is important to think about emotion. How can you tap into your customer's emotions in order to single out their customer service experience? Maybe you can reward them with an HVCO after their CS interactions or a free product on their next purchase. Investigate what your competition isn't doing and do the opposite.
5. Reviews and Brand Reputation Management are a must!
What was once word-of-mouth are now reviews on social media and third-party websites like Trustpilot and G2. This is the way customers connect with each other to discuss your product and their experience buying from you. Although it does not sound like a big item it certainly is. The reason why it matters is because it increases brand loyalty across the board, which drives up the lifetime value of every customer. So make sure you are tracking all the settings where customers are reviewing your product so that you can respond to their feedback, whether it is positive or negative.