How Much Is Your Outdated Customer Retention Process Costing You?
The lowest hanging fruit to increase your sales is by activating current customers.
Think about it. With new customer acquisition, you need to not only raise awareness about your brand, but drive them to your site, build trust, and convince them buy. This usually doesn’t occur in a single journey. It takes time and lots of resources to acquire new customers.
But current customers? If your product lives up to your customers expectations, you’re already well on your way to turning them not only into returning customers, but loyal fans and brand advocates. Current customers should be your best advocates. So even if you think a customer would only buy your product once in a lifetime, don’t neglect them post purchase.
Take a look at our friends at Groove Life. They offer breathable silicone rings for an active lifestyle. Not only is their product incredibly cool, but they guarantee their product for life! No matter what, if you ask for a replacement ring, they’ll send it to you.
So…as you can see, they aren’t counting on a lot of repeat customers.
Does that mean they ignore their customers after they’ve purchased a ring?
They create lasting relationships with their clients, providing lifestyle tips and inspiration to live happier and healthier.
This turns their customers into fans…and fans refer their friends. And a referral is even better than a repeat customer. It’s a new customer that you don’t have to spend any money to acquire. How great is that?!
Side note: If you’re using Shopify, you don’t have an excuse to not be incredible at customer retention. There are tons of tools built in to build this long lasting relationship with your customers, so make sure you’re taking advantage. We outline some specific tools below.
Here are a few tips for how you should be approaching customer retention:
Provide more value than your customers expect. In the most basic sense, this is how you create fans.
To be clear, providing more value than your customers expect does not mean that you go broke. It just means that your customers should feel like they’re getting more than what they paid for. This has nothing to do with your true costs or bottom line.
Great ways to over deliver are by providing excellent customer service, communicating the effort behind and quality of your products, creating free supplementary brand content that interests users, and/or surprising your customers with a little something extra when they open your product.
Ok, so you’re delivering more value than expected and creating fans. How do you capture value from this?
First, keep in contact and provide relevant offers. This could take the form of loyalty programs, upsells after the initial sale, and automated email drip campaigns to keep customers engaged after their first purchase.
Second, make is easy for fans to share. Build in easy tools for them to post on social media about their recent purchase and write reviews on your site. You can also incentivize your customers to refer your product to their friends through referral rewards programs.
Shopify provides some great tools and apps that can help you build this customer engagement in order to improve customer retention. Here are our favorites:
Formerly Receiptful, Conversio offers a full suite of tools from receipt generation, follow-up email drip campaigns, reviews, and even recommendations. We like to use it specifically, though, for their abandon cart follow up emails. With their sequence of abandoned cart emails, they make it easy to follow up with these almost customers and convert them.
YotPo is a program that makes reviews from customers available on your site. The hardest part about getting reviews from your customers is actually following up with them and getting them to write a review. YotPo makes this easy. It goes back through your last few months of orders when installed and emails all of your customers asking them for a review, in addition to sending a review request email to all customers going forward.
They also provide a great user experience for your customers. There are no hoops to jump through. Customers can fill out their review in a form and hit submit right there in the email request.
Klaviyo is an incredibly powerful tool for customer retention. This email marketing platform is integrated with Shopify and pulls in all of your customer and order data. This makes it easy to create highly segmented email lists based on order history and customer behavior in order to send targeted emails and offers that are relevant to each particular customer segment. It allows you to send what seem to be personalized emails at scale.
This Shopify app allows you to do intelligent upsells within the checkout process. This helps to increase average order value of any purchase, whether it be a first time customer or one of your loyal fans. And as long as the products you are offering to your customers are relevant to what is already in their cart, it is an added value to them as well.