Every business should know its target customers. Finding the target buyers and encouraging them to make the first purchase are crucial steps. At the same time, the business should focus on retaining the customers after their first purchases. Through various loyalty programs and other strategies, a business must improve the retention rate to watch profitability escalating.
1. Adopt Cross-Selling and Up-Selling Strategies
Cross-selling is a marketing technique that encourages customers to buy related products. For example, a person wants to purchase a pair of shoes. You can also encourage him to buy some socks.
The up-selling strategy encourages the customers to buy a better product that he has chosen. For example, a person wants to purchase a jacket. The seller can try selling a better quality jacket to the buyer, bringing more profit.
Both cross-selling and up-selling strategies work well on the retained customers. A new buyer is hesitant, and thus he does not invest money generously in the products from a particular brand. Existing customers already know the quality they can expect from your company, and thus up-selling and cross-selling strategies can convince them to purchase more products.
2. Give Rewards to Your Returning Customers
You need to reward the returning customers for a better customer retention rate. Offering them special discount coupons is a good way of encouraging them to purchase products from your store. Rewards are not essentially discounts in all cases. You can offer a freebie to returning customers. How can you track your returning customers? You can use advanced CRM software to track your customer activities.
3. Flexible Payments for the Loyal Customers
Offering flexible payment options is another way of building a good relationship with loyal customers. The buyers, who make frequent high expenses on your store, would love to get recurring payment options for a few expensive goods. Many e-commerce stores offer purchase now and pay later facilities to their buyers. Payment flexibility can boost your business’s sales, and you will find a better customer retention rate.
4. Loyalty Programs
Introducing a loyalty program is a proven way of retaining customers. Many businesses develop unique loyalty programs for frequent buyers. The loyalty programs give exciting discounts to the buyers. You can introduce a point system. Every time someone buys products from your store, the person earns some points. Later, the buyers can use those accumulated points to obtain exciting discounts.
5. Stay in Touch with Buyers
Small gestures can help a business build a good brand value and retain loyal customers. For example, you can collect customers’ basic information such as name, birthday, gender, email, etc. Send regular newsletters to the buyers to keep them aware of discounts and loyalty programs. You should also send birthday wishes to the buyers. Sending festive greetings and newsletters will become easier with software.
Customer retention is crucial, and a business can earn better revenue through various customer retention strategies. For building customer retention strategies, one should use an advanced tool. Using the right tool helps businesses to track their loyal customers easily. Nevertheless, the system also helps to encourage buyers to complete the first purchase. Visit EnterprisednaBlog to find how consumers make their first purchases.