Your retention strategy is how you maximize the profitability of each customer. Just a 5% increase in sales to current customers can lead to rapid growth that is difficult to match with a straight acquisition.
Repeat customer rate is the backbone of retention marketing. It measures the percentage of customers willing to make a second purchase from you.
Purchase frequency shows you how often customers are coming back to buy from your store.
Once you understand repeat purchase rate and purchase frequency, it’s time to maximize how much each of those purchases is worth.
Strategies to boost customer retention:
- Improve your customer service; Support systems help you effectively communicate with your customers and provide them with the right level of support. Delight has its place. However, customers see fast, friendly, and consistent service as the gold standard.
- Start a customer loyalty program: Loyalty programs are an effective way to increase purchase frequency because they motivate customers to purchase more often in order to earn valuable rewards. You can encourage customers to continue investing in the program by giving them welcome points when they create an account. When they see how easy it is to earn rewards, they’ll be excited to come back to your store to do it again.
- Send engaging emails or SMS messages to customers: If purchase frequency is the backbone of customer retention, email and or SMS marketing is the backbone of your retention toolkit. It’s critical that each message you send adds value to your customer’s experience. If it doesn’t, you run the risk of losing them.
- Offer a discount or credit to return: Sending a discount code for their next purchase with a first time order is a great way to nudge them to come back. For this reason, discounting can also be an effective way to bring back customers that haven’t purchased in a while.
Keep customers to grow your business.
We can help you put a retention program like this in place, optimize it and automate to get maximum efficiency.
Call 360 Market Launch at 727-858-4173 or contact us