When it comes to increasing sales and ultimately your profits, it’s more cost-effective to persuade current customers to make repeat purchases than it is to find new customers. In fact, the process of finding new customers can be anywhere from five to twenty-five times more expensive than retaining existing customers. But how do you ensure your existing customer base returns time after time to your online shop? Here are 5 easy ways to increase customer retention and sales.
Customer accounts have a host of benefits for returning customers such as streamlining the checkout process by pre-filling address and contact information and allowing access to previous orders. But encouraging a user to sign-up for a customer account can be somewhat challenging.
If your e-commerce site offers the option for users to checkout as a guest, and to be frank, it should, then creating an account can often seem too much of a commitment for new visitors. Consider encouraging account sign-ups after the sale by explaining the benefits to your customer, not least the ability to track their order.
Let this sink in, 20% of existing customers will typically account for 80% of future profits. If you aren’t looking after your current customer base, then now is the time to introduce a loyalty program and give them the attention they deserve.
Whether your loyalty program gives users money off their next purchase, points to redeem in the future or tiered savings, don’t underestimate the power of the program and the opportunities it opens up to your business. The act of emailing a current customer to let them know their loyalty points are expiring soon can easily encourage another sale.
You’ve just launched a ground-breaking product that is about to revolutionise your industry yet sales are average at best. Maybe you forgot to tell your customers about it? 80% of businesses believe email marketing helps to increase customer retention, so make sure you’re sending out regular and engaging newsletters.
If you’re not updating your customer base with news, offers and relevant information about your company, then you’re guaranteed to be throwing away business.
It’s easier to sell to a friend than to someone you’ve just met – FACT! When you engage and interact with users on social media, they become to think of you and your business as a friend. Trust levels increase, which in turn means followers are more likely to listen to your advice and recommendations.
Make sure you to produce a social calendar, create regular engaging social posts and interact with your growing number of followers; you’ll find the time and effort is worth the reward.
Proactively engaging with your customers after a sale by inviting feedback and reviews is a great way to improve your level of service and collect testimonials which can inspire confidence in new visitors.
Don’t be afraid of a negative review; see it as an opportunity to learn and grow your business so that next time, the negative becomes a positive. Information gleaned from this process can be a valuable asset in growing your business and improving conversion rates.
Your number one asset in growing your business and increasing sales is your current customer base. Once you learn this and how to harness existing customers to the advantage of your company, you will find sales, and more importantly, profits start to increase.
Finally, don’t be put off by thinking you don’t have the time or the expertise to implement these changes. Consider contacting an agency such as Actuate Digital today; you’ll find a professional solution isn’t out of reach and could soon pay for itself several times over.
3 Min Read
Published: 20 August 2020
Mat is the founder here at Actuate. His role focuses on strategy, culture, looking after our clients and every now and then getting stuck in with coding.