Which customer retention strategies should you consider for your ecommerce company? There are several to pick from but some are definitely more effective than others. Here are some benefits to think about:
- More referrals
Another plus of customer retention strategies is they can boost your company’s personal referrals. Studies show that more people are sharing their favorite brands online with 90% of Millennials telling their friends and family about their preferred brands. This is a great way to get more word-of-mouth referrals for your company.
These types of referrals are very effective since they’re personal ones from people who have actually used your products/services. People tend to trust product suggestion they get from people they know so this can be a very effective way to get the word out about your company. Will each referral convert into a sale? It’s unlikely but remember that it’s not just about racking up more leads. The key is to convert those leads and it’s much more likely when people are getting referrals from friends and family. They’ll certainly be more likely to make a purchase in that case.
- Higher profits
Studies show that engaged customers spend 60% more on each transaction compared to other customers. This is one of the top reasons to consider customer retention strategies. There are several other figures to consider and they all show how focusing on Pathwwway Gambling customer retention can improve your company’s bottom line. It’s important to focus on customer lifetime value (CLV) instead of other things like purchase totals and average purchases. This makes it crystal clear how important it is to focus on customer retention instead of customer acquisition.
- More understanding
How expensive is bad customer service? Studies show that it costs companies more than $1.6 trillion (with a T) every year. There are going to be issues and problems with any brand. What’s important is to deal with them as quickly as possible. If you do that then you’ll earn loyal customers. Those customers will be more forgiving because they’ll be happy with your brand/products. The key is to minimize the issues they have to deal with.
- More feedback
When your customers are more engaged they’re more willing to provide feedback to you. This can be a valuable tool for online companies because it tells companies what they have to do to get repeat customers. An interesting study showed that customers who had a complaint resolved were nearly 85% less likely to spend less. This highlights the need to get feedback from customers and deal with any complaints they receive.
Companies often view complaints as something negative. Truth be told they can be tough to deal with because it could show that your company has some problems with this product, service, etc. That said, it’s better to see the “glass” as half full. In other words, it’s an opportunity to tweak some things and improve the company. That in turn can help to boost customer retention and even find new customers.