Which costs less: keeping existing customers or acquiring new ones? If you answered keeping
existing customers, you’re correct! Although increasing brand awareness and attracting new
shoppers is the main focus for many marketers, retention is also vital.
By focusing on customer retention you see better conversion rates, can focus on nurturing
quality relationships, and have a better chance at turning one-time purchasers into lifelong
Learn About Your Loyal Customers
Identify shoppers who’ve come back to your business more than once and see if you can
pinpoint why. Look for any patterns and similarities that you can leverage. Through data
analytics tools, study the following about your loyal customers:
● Buying behaviors
● Purchasing history
● Demographic information
● Customer lifetime value
● Website navigation patterns
● Engagement other than purchases
● Where they interact with your business the most
Also, learning about your loyal clientele allows you to take advantage of personalization
Lean into Personalization
Over 70% of customers say they’re frustrated when businesses don’t personalize the buying
experience. Don’t let lack of personalization be the reason shoppers don’t come back. Instead,
provide them with a tailored brand experience.
Here are some ideas for implementing personalization:
● Personalize email subject lines
● Wow them with real replies
● Use dynamic content features on your website
● Use customer location and time zone to your advantage
● Provide them with personalized content they can use forever
● Send them an email when they abandon their cart on your website
● Segment your customer base and send each group relevant information
● Send shoppers product or service suggestions based on their browsing history
● Use their first name on all emails and other marketing materials you send them
Next, improve retention by focusing on quality service.
Focus on Customer Service
One negative customer service experience could be the end of a relationship. Retention is
dependent on excellent service. Shoppers are more likely to return to your business if they know
you’ll treat them well no matter what.
Focus on service by resolving customer issues entirely. Ensure they can get help whenever and
wherever. You can provide this comprehensive support through the use of technology,
specifically chatbots. For example, chatbots can lead the way if a consumer has a product
question or needs to initiate a return.
Using customer service technology like chatbots improves your response time. It allows for
impressive flexibility in communication that keeps them coming back.
Take Customer Feedback Seriously
If you listen carefully, your customers will tell you everything you need to know about keeping
them. When a shopper provides you with feedback, especially negative feedback, take it
Many marketers shy away from addressing negative feedback. Yet, this is the best opportunity
to find out what your clientele needs. In expressing that need, your customer will also give you a
blueprint to fill it.
For instance, they may send an email about their issue with your website’s navigation. They
suggest taking a few things off your navigation bar to cut the confusion. You can then share that
concern with a web designer and work with them to improve your site.
Give Back to Your Community
A solid online presence isn’t enough to curb retention challenges on its own. You need an offline
presence. You can create this presence by immersing yourself in the community.
Customers are more loyal to businesses that they have an emotional bond with. You can create
an emotional bond by supporting their social responsibility commitments. A few ways to give
back to your community that improves retention include:
● Giving a part of your profits to charitable organizations
● Hosting customer appreciation events at local businesses
● Volunteering at nonprofit organizations in your neighborhood
● Hosting free community events
● Offering your services or products for free to families in need
Designing a solid advocacy program can also help improve retention.
Design a Customer Advocacy Program
Customer advocacy programs encourage shoppers to share their experiences. The more
honest they are with their circles and your support team, the better.
Advocacy programs are voluntary. So, it's best to pair them with incentives your patrons will love
to make them worthwhile. Your customer advocacy program should focus on consumer choices
A referral program should also accompany your advocacy program. A referral program rewards
current shoppers that refer new customers to your business. Referral software can help you
create a program that’s simple to set up, customize, and manage.
Build a Loyalty Program
A customer loyalty program gives you a competitive advantage in retention. A shopper is more
inclined to make repeat purchases with your business when they’re rewarded for it.
You can use customer loyalty software to build a unique loyalty program. Shoppers can earn
points with every purchase and use them how they please. You could also offer a loyalty
program that unlocks better rewards the more they engage.
Improving customer retention should be one of your business’s main priorities. Take the
necessary time to learn about your loyal customers, lean into personalization, take feedback
seriously, give back to your community, and build solid advocacy, referral, and loyalty programs.
It’s a lot of work, but the rewards are well worth it.