Keep Your Peeps
I always think of the old saying "a bird in the hand is worth two in the bush" when describing customer retention. There are countless potential customers making it far too easy to get distracted by the lure of new business and find yourself having little to no focus on current and past customers. Most companies focus their marketing efforts on customer acquisition and pay minimal attention to current customers, just look at company advertisements, these advertisements are built for bringing in new customers. It is true that new business will drive a company and is vital to growth, but consider the power of referral by current or past customers. You should also consider the cost; customer retention on average costs seven times less than customer acquisition. With the state of technology today it's easy to find a vendor for nearly anything you are looking for; what is not easy is finding businesses that are trustworthy and that provide quality support when purchasing and after purchasing goods. Retention is not difficult and here at OptCulture, we can provide you with just the tools you need to retain and satisfy current customers.
Retention Through Loyalty
As a way of rewarding those customers who shop with you on a regular basis look to implement a loyalty program. According to Nielson, 84% of global customers say they want to visit stores where they are part of a loyalty program. On average loyalty customers spend 60% more and visit 90% more frequently. They are also 70% more likely to share their favorite stores with their friends. While loyalty customers only account for 20% of the store's average customer base they account for 80% of the store's total revenue. Having a loyalty program also allows you to offer special promotions to that customer base and target them for special events. Private events or the first chance at new arrivals are a great way to reward loyalty customers and make them feel special. Offering the ability to earn double rewards on purchases is another promotion that can be created for your loyalty members. If a greater retention rate is a goal that has been set for your company or business, a loyalty program should be first in line for implementation.
Retention Through Email Marketing and Segmentation
One of the most powerful tools we offer here at OptCulture is the ability to segment customers based on sales data. Our application is directly linked to your POS system and receives sales data that is synced to customers which can be used for segmentation. This can be extremely useful when looking to increase customer retention because it provides the user with the ability to personalize advertisements as well as to reward or acknowledge customers based on purchase history. If you were to have a customer come in and make an extraordinarily large purchase you can send them a personalized email thanking them for their support. You could also actually segment groups based on purchase amounts and segment into small spenders, medium spenders, as well as big spenders. This ability to personalize advertising and provide value to the customer will truly help benefit customer retention.