The Purchase Is Not The End: 9 Ideas to Keep Customers Coming Back
Apr 18, 2018
Bain and Company’s research shows that an increase of customer retention rates by 5% equals an increase in profit between 25 - 95%.
You should also know that the cost of attracting a new customer is five times more than keeping the one you already have.
Despite this, the majority of companies focus on acquisition instead of retention.
And that right there is motivation for reading this article…
To keep customers coming back, so that your business makes more money.
And spends less.
9 Ideas for improving customer retention rate
After all the effort that gets put into advertising, sales and marketing, it's such a waste to have a customer make a purchase and then simply vanish.
Think about it...you go to your hairdresser, who takes down your contact number when you book an appointment, but you won’t hear from her again after the booking.
But imagine if she called you a day later to find out if you were satisfied, and perhaps to find out if you had any suggestions of making the experience better? And then a week later, you were sent tips on how to manage your newly bleached hair. How much stronger would your relationship become with that hairdresser, so that you would not want to go to another?
You don’t have to be a hairdresser to make your customers love you...whatever your business, there are ways to delight your customers and keep them coming back for more.
Here are 9 ideas to get started:
#1: Email list
Find some way of getting your customer’s email address after the first purchase, so that you can add them to your email list.
Create an email marketing strategy so that you can keep in touch with your customers.
#2: Customer surveys
What better way to make improvements to your service or products, than by getting feedback by those who are at the tail-end of it? After the purchase is the perfect time for a satisfaction survey to find out what you’re doing wrong and what you’re doing right, and then to make enhancements based on whats been shared.
Don’t leave it at that though...follow up with personalised contact to thank them, and tell them what you’ll do with what they’ve shared with you.
Include a strategy to make more sales either together with what they are purchasing the first time, or how to get them to buy other goods or services that tie in with their first purchase. For example, if they buy a winter hiking jacket, offer them shoes to go with it, and throw in a discount if both are purchased.
Get more upselling ideas.
Clever add-ons by the Dollar Shave Group
Customer Relationship Management software helps you manage interactions and relationships with your customers:
- It provides an overview of customers and sales
- It helps so that nothing falls through the cracks
- Allows the setting up of automated email sales campaigns
#5: Marketing automation
There are various ways to automate many marketing functions that impact customers during the purchasing phase. For example, retail ecommerce stores can use email marketing automation to map out sequences. If a customer clicks on a product to buy it, but does not end up paying for it, the system sends an email offering a discount. Its something of a “if the customer does that, then this happens”.
This is the GetResponse marketing automation software that maps out actions.
#6: Loyalty program
Those who keep buying from you deserve a thank you, because it is them who keep your business going.
Loyalty programs are an excellent idea, as they serve the purpose of encouraging customers to buy more, and at the same time, are rewarded for doing so.
#7: Surprise and delight
Word-of-mouth is the most powerful form of advertising, and it costs nothing. But in order to get customers speaking to others about your service, it has to be gossip-ble…
When you find ways to surprise and delight your customers, the effect will be profound. Think Carlton-Ritz, who has a reputation for this.
#8: Social media
You know the saying…”out of sight, out of mind”...well, you don’t want to be out of your customer’s minds!
Run campaigns to get customers to follow you on social media, so that your business is a constant reminder to them. Combine that with meaningful social media content that adds value to their lives, and you’ll make more sales.
#9: Returning discount or referral bonus
Encourage customers to return by offering a compelling reason to do so. Offer discounts on second purchases or give them sought-after gifts if they refer other people.
Jefferson Maguire specialises in filling Sales and Marketing positions.