Do You Have A Customer Retention Strategy?
When talking to business owners, we often ask the question “what is your customer retention strategy?” And more times than not, small business owners don’t have one. Customer retention strategies are essential and need to be integrated into any business. After all, over 60% of sales will come from existing customers. It costs more and takes more of your time to market to new customers than to your existing customer base.
So how do you go about retaining customers?
Implement a reward system
Nothing keeps customers coming back like giving customers rewards and bonuses every time they shop with you. For example, if a customer orders over $100 worth of products they get $10 off their next order. Not only is the customer winning, but you are too because the majority of the time that $10 will entice a customer to come back and buy again, especially if they love your products!
An ambassador program helps your business by working with influencers in your industry who will promote your products, sometimes for free or for a small fee. When an ambassador creates a blog post about your business, it helps your SEO- think of the impact when you have 10, 50 or 100 ambassadors! People trust influencers because they’ve worked to build up their brand and often have a large following on social media, so when they promote a product, they do so when they trust and believe in a product which can help to create lifelong customers for your business.
Do you market to potential customers and existing customers the same? If you do, this is a significant NO that needs to be called out. Would you give the same relationship advice to someone who is single vs. married? The answer is no! Think of your married friend as your returning customer; they are experienced with the ins and outs of a relationship whereas your single friend may struggle with dating! The same thing for existing and potential customers, your existing customer has purchased from you, they know your product- so why are you marketing the pros of using a specific product when they have been using it for two years?
It is important to develop content around different buyer journeys and segment marketing into buckets- existing customers don’t need to know about the quality of your product, save that for potential customers.
Talk to your customers
Nothing is more valuable than when you ask for your customer’s opinion. Not sure if you want to launch a new line or introduce a fresh scent? Ask your customers; they are after all the ones purchasing your products; they know best!