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Ecommerce Marketing

5 Ways to Boost your Customer Retention Rate

Hrithika Kommu September 3, 2020


Background

               

customer retention
Your best customers don’t just buy one product or use your service once. they are available back again and again for more Customer retention increases your customers’ lifetime value and boosts your revenue. It also helps you build amazing relationships along with your customers.

Customer retention is the process of engaging existing customers to continue buying products or services from your business. Customer retention may be a strategy accustomed to increase the number of repeat shoppers your store has. once you implement tactics to do and keep your current customers returning for his or her lifetime, you’re investing in an exceeding customer retention strategy. the simplest customer retention tactics enable you to make lasting relationships with consumers who will become loyal to your brand.

Customer Retention Rate 

Customer retention rate designates the proportion of shoppers the corporate has retained over a given period. The retention rate is that the reverse side of the churn rate, which shows the share of consumers a corporation has lost over a selected period. The importance of retention rate as a metric varies betting on the industry, as an example for businesses providing services or selling software goods, customer retention is crucial and it directly affects the profitability of the business.

When calculating your retention rate, you evaluate the number of shoppers that remain at the tip of the amount in review, compared to the number of consumers that were present at the start of the amount. When calculating the retention rate, we don’t care what percentage new customers were acquired we only consider this number to subtract from the overall number of consumers at the top of the amount. Then we divide the difference by the number of shoppers at the start of the amount. Finally, we multiply by 100 to find the retention rate as a percentage.

Ways to Boost your Customer Retention Rate

1. Create a customer loyalty program

Implementing a program to reward your most loyal customers is a straightforward thanks to hinging upon existing relationships and offer regular incentives for them to return to your business. It’s about that specialize in keeping your current customers loyal to your brand instead of only trying to recruit new ones. Loyalty begins within the engagement stage, and it helps guide your customers backtrack the funnel to form repeated purchases and become brand advocates! after you offer points, tiers, and valuable rewards only for shopping at your store, customers are curious about being a component of your community.

The most important thing to recollect when implementing a customer loyalty program is to stay it simple. Make it easy for patrons to grasp the steps they have to require to earn rewards furthermore as use apply rewards.

For example, Starbucks has one in all the foremost popular and praised customer rewards programs. Their program helps customers earn free food and drinks, place and obtain their orders, and receive personalized offers.

customer retention

     Source:https://blog.alexa.com/wp-content/uploads/2019/07/customer-retention-examples-rewards.png2.

2.Implement cross-selling and up-selling strategies

 Ensure every customer checks out with something extra in their cart by using cross-selling and upselling strategies throughout your website and every one communication. Upselling could be a strategy to sell a superior, dearer version of a product that the customer already owns. Cross-selling may be a strategy to sell products associated with the one a customer already owns.

One of the ways to up-sell is to push your most reviewed or most sold products, give more prominent space for the upsell, display testimonials for the upsell, and confirm the upsells aren’t quite 25% costlier than the first product.

An example of cross-selling will be seen at McDonald’s. McDonald’s keeps their pie dispensers right behind the cashier, full view of shoppers. This results in a rise within the number of apple pies bought together with the first order.

customer retention

               

Source: https://i.insider.com/5af5b8e25e48ec1e008b45a5?width=750&format=jpeg&auto=webp

3.Set your sales goals

Before you tackle any marketing strategy, you would like a goal. Otherwise, you don’t know what you’re shooting for. First, calculate your existing customer retention rate. you’ve got to start somewhere. If you’re currently retaining customers at 10 percent, setting a goal of fifty percent isn’t particularly reasonable. you would like a goal you’ll be able to feasibly hit. Consider the scale of your customer base furthermore because of the style of product you sell. Some products are tailor-made for customer retention. However, if you’re wanting your customers to undertake different products, to order the identical products as gifts, or to order more of what they have already got, you’ll need a more conservative goal.

4.Adjust your pricing for returning customers

You can adjust your pricing in an exceedingly way that creates it easy for current customers to return and conduct more business with you. Tactics exist for raising prices. However, customers must not think that you’re doing so simply because you would like a stronger margin of profit. Even the tiniest hint of that would be damaging.

For example, maybe you offer customers discounts via email for his or her next purchases to receive e-receipts for his or her most-recent orders. Or, free shipping and returns likewise as additional price-related perks for frequent shoppers.

5.Ask for feedback

Conduct regular surveys and request feedback from all of your clients. Asking feedback from your customers makes your customers feel good because you value their opinions and provides you insight into how your customers think and feel. Boring surveys won’t be the thanks to going. you’ll transmit an email that asks all of your subscribers to reply with their thoughts. Encourage people to supply in-depth answers.

   Conclusion

  Customer retention doesn’t improve overnight. However, if you have got some solid strategies up your sleeve, you’ll coax your existing customers back for more. First, know your customers. determine what they need and want and where their pain points lie. Find ways to surprise, delight, and motivate them. Get to bear. Help them realize you appreciate their patronage. while gaining new customers may be a sign of business growth, losing customers is just too expensive, because the average global value of a lost customer is $243! Your existing customers offer you a good chance to extend your profits, as they’re more likely to shop for from you than prospects. The more customers that you simply can keep and still sell to, the more likely you’re to attain your business goals.       

 

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