Strategy to increase customer retention

Strategy to increase customer retention

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  SHUBHAM PRASAD IIM INDORE
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   Customer accountscan be a double-edged sword.  Accounts can make repurchasing much easier by giving customer easy access to past orders as well as pre-filled shipping information.  Customer accounts can be a seen as too big of a commitment for new customers. Because of this, most people will choose to checkout as a guest if given the option.
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   Developing onthe idea of customer accounts, is to reward customers for their loyalty.  Developing a loyalty membership to your store is another way to increase conversions from your current customers while rewarding them for their repeat purchases.  Creating a loyalty program can be as simple as rewarding customers on their second purchase at your store or after a set dollar figure
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   Your emaillist is a critical tool for maintaining and building relationships with your current customers.  Time and time again email has proven itself to be one of the top converting channels for ecommerce.  An email marketing campaign like this to all of your customers is quick to implement and can produce big gains.
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   Depending onyour niche, product mix and margins, sending a small gift to your best customers can be a great way to remind them to come back while adding the element of surprise and delight.  Giving an unexpected gift also plays to the law of reciprocity which refers to responding to a positive action with another positive action.  Use this to your advantage but sending your best customers small and unexpected gifts. It can be as simple as a digital gift certificate to your store  you can take it a step further and send your customers something that lets them know you went the extra mile because they are important to you.
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   You wantto be careful with discounting your products. For many ecommerce merchants, margins can be tight and if your customers become accustomed to discounting they may expect it all the time. However, discounting can also be a really effective trigger to bringing back customers that haven’t purchased in a while.  You may also wish you experiment with offering credits to use at your store a percentage discount (i.e. 10% off any purchase). The credits make the offer feel more tangible and makes the customer feel like they need to spend it, otherwise they are wasting money.  Sending out discounts to dormant customer can either be done manually is you still have a relatively small customer list, or, it can be automated through email apps.
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   Social mediais all about building relationships and who's better to build and cultivate relationships with than your customers?  People who have chosen to ‘like’ or ‘follow’ your company tend to 'like' or 'follow' your brand for a reason. These people can be your most loyal customers and brand ambassadors. They want to hear more about new products and promotions so it's important to use these channels regularly to make sure your connecting with these people and driving them back to your store often.  Keep in mind that Face book only shows your posts to 5%-10% of your total fans. This means, you should be posting often enough so that you're regularly reaching all of your fans and customers.  Experts will have their own opinions as to exactly how often that is, generally, 1-2 times per day is a good base number to work with, however, you should always pay attention to your pages engagement and unlike and tailor your posts to your audience.
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   E-commerce systemsdo require users to make an account, but many of us think the one time checkout option is better because it allows the user to define their experience with us.  Making customers create accounts allows you the ability to create detailed demographic information about your customer to supplement your retention efforts.  Once a user has an account, making it simple to login and complete purchases from stored credit cards make the next purchase that much simpler. We are all familiar with “One-click checkout” from Amazon.  The first company to make a multistep process of buying a product online, as simple as one click, and it comes from successful customer accounts.
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   When acustomer visits your site and makes a purchase, they gather an understanding of your brand and offering.  This understanding of your brand and offering becomes your own obstacle to recapture your customer’s attention down the road.  Update your customers on new product offerings, features, and even updates to your cart technology that make it easier and more relevant to purchase from you.
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   Following upwith a customer 4-5 days after their product arrives is a great way to engage them in the satisfaction with their purchase as well as the shopping experience overall.  A post-shipping survey is a nice way to gather feedback and is another touch point to develop your customer service and brand message with the customer.  This lets them know you are focused on their satisfaction and also want them to know you are there for them outside of your purchase.