High customer retention is directly associated with repeat purchases, higher-order value (AOV), brand loyalty, and higher customer lifetime value (CLV). If you have managed to retain more customers, then you must have satisfied them with your offerings and held them back from leaving you in favor of your competitors.
Yet, only 18% of companies focus on customer retention, compared to 44% who focus on customer acquisition. This is unfortunate, considering it’s easier to get current customers to purchase more than it is to get new customers to purchase even once. In e-commerce, this fact is especially true because customers are spoiled for choice and it’s harder to get them to click on that “Buy Now” button. It’s even harder to keep the costs of clicks and conversions from increasing.
If your e-commerce brand is not focusing on customer retention, it’s never too late to start. With the right retention methods, your sales force can make more customers fall for your brand and extract the optimum value out of them. Over time, you will see a substantial impact on your repeat sales and build a tribe of loyal customers who prefer your brand to your competitors. Let’s take a look at some of the methods that your sales force should adopt without delay.
Know them
Getting to know your customers goes beyond understanding the basics such as their name, location, and purchase history. It requires understanding their behavior, unique needs, and challenges.
What made this customer land on your e-commerce store?
Why did they buy X product?
How often have they purchased it in the past?
And what insights can you glean from this data about them as individuals?
By unpacking these aspects, sales reps can tweak their selling tactics to resonate with each existing customer. They can identify which offerings are most likely to appeal to these buyers and modify the messaging to increase the chances of conversion. Moreover, if they can add the human touch to each interaction and make it less transactional, the team can make deep connections with each buyer and thus increase the probability of retaining them.
Knowing customers and building meaningful relationships with them also helps the sales force upsell and cross-sell other products. The brand-loyal buyers know that the team is willing to go the extra mile for them so they will trust the brand, open their wallets, and spend more.
Emails Work Every time
The old-school method, email, serves as a high ROI channel for e-commerce and has a high conversion rate. An appealing, well-structured, and personalized email creates numerous opportunities for your sales force to engage with existing customers and continue to build relationships with them. On average, email can garner a massive ROI of 3,800% for your brand – that’s $38 generated for every $1 you invest in your email marketing program. When it comes to conversions, one study traced emails as a major reason behind the 15.22% increase in sales. This communication method accounts for 19.8% of all e-commerce transactions.
So why not use it to engage with current customers and boost your retention rates?
If your emails add value to customers’ brand experiences, they will keep coming back. Instead of focusing on selling, give them useful information and a reason to keep engaging with your content and brand. Thank them for their loyalty and wish them on their special days. Make your brand more approachable and “human” via email and help them feel good about buying from you. By getting these aspects right, you can retain more customers and continue to get their business.
Collect Feedback
Asking customers for their views or feedback is one of the best ways to understand their expectations. It’s also a great way to make them feel heard and valued. Many brands today have adopted a Voice of Customer (VoC) program as an effective way to set up a customer feedback loop. Its goal is to make customers active participants in the brand. They feel appreciated by the brand, which increases their trust and loyalty. A VoC program for your e-commerce brand can also garner the same benefits.
A well-designed feedback survey helps your customers voice their concerns and needs. They also get to share information about areas where they need more support from your brand. You can also ask your customer support team to share insights and feedback they might have received when interacting with existing customers.
Don’t be afraid to ask about your improvement areas. Encourage them to be honest by asking specific questions about improving the service and experience. Use empathetic language that focuses on their needs and how your brand can help improve their lives in some tangible way. Offer incentives where possible to show how much you appreciate them and their inputs.
Conclusion
Many companies still rely on old-fashioned sales tactics like cold calling and spray-and-pray emails. Such tactics may work for customer acquisition but not for customer retention. To hold onto customers, your sales team must focus on relationship-building. For this, they must stay connected with each customer, engage with them via meaningful email, and ask them for honest feedback. These three strategies can help you build trust and increase customer loyalty and retention.
Want to make these customer retention strategies work for your e-commerce brand? The Ergode team can help. Contact us to know more.
