I’m an existing customer and I’m your best customer. Make it worth my while and watch me turn into a loyal customer.
Growing your business should not solely focus on getting new clients. Getting your current customers to appreciate, value, and continue to use your products or services more often is just as important, and provides surprising opportunities for increased revenue.
Stop Rewarding Only New Customers
As a new customer, I might subscribe to your weekly or monthly newsletter to get a discount on my first purchase, but what happens after my first or second purchase?
Has anyone ever unsubscribed only to re-subscribe in order to qualify for the discount reserved for new customers? I have, even by simply using a different email account. Stop rewarding only new customers. Existing returning customers or long-standing subscribers should get some special attention and not only new customers should be rewarded with discounts.
Online businesses generally focus on new customer activation and not so much on current customers, whether these are active or not.
It’s Cheaper To Retain A Customer Than To Acquire A New One
Although standards vary from company to company, most online businesses, according to popular surveys show that only 25-30% percent of customers actually order a second time over the course of the first year. This is a clear indication that most new customers lose interest after the first sale. Believe it or not, it’s a known fact that, it is cheaper to retain existing customers than acquire new ones, so it’s important to include a strategy, in your marketing plans, that focuses on retaining existing customers. An offer they can’t refuse, that clearly communicates your appreciation and keeps them coming back. Make it worth their while.
Make It Worth Your Customers’ While
Last year I purchased my favorite coffee online from the company that produces this specific brand, since not all stores carry it. What bothered me is I had to purchase enough to last me a year in order to qualify for free shipment. Recently I was on my last confection of coffee and when I went to a local grocery store I found the exact same coffee for 10 cents less a pack and I could buy two or three instead of 20.
It obviously isn’t worth my while to purchase this coffee directly from the producer’s online shop since it costs me more, with the added hassle of having to order and store a large quantity. So next time I can’t find it at the grocery store I’ll probably try something new, unless I receive an email with a discount offer on my favorite coffee if I return as a customer.
Why Retaining Your Existing Customers Is Important For Your Business
- Customer retention is much cheaper than customer acquisition, so if you’ve come this far and a customer has made a purchase, it stands to reason that focusing on retaining that existing customer will increase your ROI
- Customer retention increases loyalty and the lifetime value of customers
- If you’re a retailer with an e-commerce business, you can double your revenue by simply retaining 10% of your existing customers
Through focused marketing and targeted ad content, you can give your customers a reason as to why they should continue to enjoy your product or services. Take for example California’s iconic “Got Milk?” campaign, produced in 1993, which saw milk sales rise by 7% in the first year. The ad targeted people who were already drinking milk and entirely focused on the consumer base they had. The campaign made a significant impression across state borders as well.
What Can You Do To Retain Existing Customers?
Online businesses rely heavily on email campaigns. So instead of focusing only on email campaigns that will increase customer activation rates, focus on retaining existing customers. Make them feel special. It’s not enough to send emails for your seasonal sales and offers. Include a voucher, coupon, or free samples, along with their first delivery. Help your new customer take action and return to your website or online store. Don’t cram their inbox with a series of emails they’ll never read or with a list of discounted products from your production, that may not interest them. Try putting a little effort into it by personalizing the email and the offer.
Following their second purchase make customers feel special by providing discounts custom made for them.
A company I purchase from online has a very robust customer retention program. Not only did I get a 15% discount and free shipping on my first purchase, but when I subscribed I also began receiving regular monthly discount codes via email, up to 30%. off, whether I had been active or not, promoting excellent products at very competitive prices, including my personal favorites. On top of it, they throw in free samples with every purchase for returning customers. I know for a fact this company did not let any of their first-time customers escape, instead, they turned them into advocates for their products.
- Build and grow brand awareness among your existing customers
- Provide seasonal offers, but also provide existing repeat customers with customized offers. For a seamless experience, you can direct customers to a dedicated rewards and referrals page on your website
- Keep it simple. An easy-to-use interface for customers to take action and redeem their rewards, as simple as a Code they can apply at check-out.
- The secret lies in turning your repeat customer into a loyal customer, one who will not consider alternatives
There is a difference between a repeat customer and a loyal customer. Loyal customers will tell their friends and family about your product or service, creating free organic word-of-mouth marketing for your business. Once you’ve built a solid loyal customer base, it will prove difficult for any competitor to take that away from you.
I am a professional content and copywriter. if your business needs well-crafted written content to acquire new customers or turn your existing customers into loyal customers, let’s connect.