Profits come from winning new customers, but mostly from retaining old customers. According to Marketing Metrics data published in 2020, the successful sales rate for new customers is only 5-20%, while this rate for existing ones is 60-70%.
Needless to say, businesses are well aware that obtaining new buyers in today’s competitive environment is very challenging. So it’s better to hold dear to the ones that already purchased from you. A study by Harvard Business School points out that an increase of 5% in retention rate generates 25-95% in profits for your company. That said, get-back-customers tactics are vital for developing a sustainable business.
The following strategies will help you keep the customers you already have, starting with…
9 killer get-back-customers strategies for retails
1. Define and highlight your values
What does your business stand for?
An intriguing study by Havas Group shows that 77% of customers will prioritize buying from the companies that “share their values”. This number is even higher for younger customers, 84% of millennials ask for the same value system when making a purchase (according to Meaningful Brands, 2019).
If your business does not stand for certain values, you will likely be left far behind. Defining business core values has never been an easy matter. If your business has not yet taken sides, you are better off in a hurry.
Give a profound thought about current values and decide which values would bring a strong reliable relationship with customers. Some food for thoughts could be feminism, mental health issues, creativity, green lifestyle, environmental subjects, and advanced technology dynamism.
Does it bring value to your customers?
Customers have no longer bought a product for the mere use of it. ‘You are what you use’ is the belief of modern shoppers. Products are now required to express customers’ value, style, personal taste, and much more. A big question businesses need to tackle is whether your product helps customers represent their values.
2. Share your work
Share your update product releases
Selling is the continuous process of communicating and conveying messages to customers. Your team has worked hard to update the products, but do customers know about this commitment? That’s why you need to notify them about those changes, take the opportunity to share with existing users and potential users the engagement and dedication that you put into your goods. New feature guides or useful updates will surely be well received.
Tell them about your new products and features
Using notifications about new products and features can help you stay connected effectively to your customers. With the diversity of communication channels, it is not difficult to bring information to consumers. You can refer to some successful examples of using updates and new product releases as a strategy to attract new buyers’ attention and retain existing ones. Telling customers about new features or new products will lead to a significant increase in the company’s profit.
Data provided by CX Solutions indicates an average 30% increase in repurchase rates and referrals if former customers receive information about new products or services.
3. Educate your customers, don’t just sell
In the CX Solutions study mentioned above, actively providing information on how to avoid problems does increase repurchases or referral rates up to 32%.
That said, you don’t want to let your customers try to find ways around with your products. Using without specific instructions can lead to unpredicted and unfortunate consequences that adversely affect the company’s reputation.
Having good products is not enough, customers need to know how to use them correctly. Here are some guidance techniques that can be utilized.
Make sure you have simple tutorials and advice, step-by-step instructions for customers to follow.
- For customers who like to self-study, create an online training series.
- Use email marketing to send periodic emails educating and onboarding the new customers about the process of using your product
- For customers who want expert guidance, give them the option of one-on-one coaching sessions with your specialist.
- Create a community where a team of experts is 24/7 ready for users to easily contact or ask for help.
HappyPoints, a Shopify development company, did this very well with their Free migration checklist for Shopify. Besides having CTAs about their migration checklist, this company gave out a beneficial document to support their subscribers.
4. Deliver surprise reciprocity
Be nice to customers
Haven’t you heard of “The Rule of Reciprocation“? What about “People behave the way they are treated”? To put it simply, when you receive a favor, you will feel compelled to repay it.
This rule applies to business, too. You customers pay back more than what they receive. Therefore, being nice and treating your customers wholeheartedly, you’ll be thrilled by what you get in return.
Now, how to treat customers well? That is customer care we are talking about, excellent customer service throughout user experience will increase the rate of repurchase and recommendation by up to 32%.
Surprise your customers (thank-you notes/handwritten notes for example)
Be the first to give without expecting anything in return. When you care genuinely for your customers, you will find many ways to surprise them. The customers are sure to be delighted with petite delightful surprises like a birthday message or take-care notes. Once customers have bought from you, don’t end the relationship!
Engage them, interact with them to build a long-term relationship by sending personalized handwriting thank you cards to express gratitude and give out reciprocity to customers.
5. Delight your customers
Giving out gifts and discounts can generate prompt excitement and attention from customers, but…
Is that the right scheme in the long term?
Instead, you should consider petite but meaningful actions. Brightening customers’ day with small actions will bring tremendous value.
To verify that theory of reciprocity, an experiment was conducted in a restaurant where waiters would give a mint to customers after meals. Here are the results. Tips increased by:
- 14% if they gave two mints.
- 23% when the waiter put a mint candy on the bill but returned soon after that to give guests another mint.
When customers are well treated, especially when they don’t expect it, they would have a much better impression of the quality of your service. A small action, a simple gesture can make them satisfied and give you back more profits. The feeling of satisfaction is also what keeps customers stuck with the business.
6. Focus on service before delight
As an old saying goes “can’t make bricks without straw”, your service must be the core. The added delights or reciprocities only come in second place. As shown in a study on Customer Service, delighting customers doesn’t build loyalty. Businesses need to focus on improving the quality of services.
Effective communication with customers via multiple channels is required to receive feedback and provide timely assistance to customers. Auto answering forms, live chat plugins are not entirely reliably in case of unstable connection. That’s why it’s necessary to have a complete and detailed user guide available online and offline, so that customers can help themselves. Besides, you should have a hotline for all-time and direct connection.
However, businesses should not be ignored for the helpful and rapid help of modern applications. Recommended by Help Scout for confirming its effectiveness, Slack is an online management tool for team players to access and receive instant notifications from customers. Thanks to making use of human resources in the support channel, the effectiveness of responding to buyers’ feedback increases by 340%.
7. Speed is number 2, quality is number 1
Deliver what exactly your customers need
A study from Gallup shows that courteous, willing, and helpful services and products will retain and engage customers. The number of customers sticking with a company because of quality service is 9 times higher than the number of speed-purchasers. And “speed service” is only an extra.
The product quality of course greatly influences the purchasing decisions. The better the quality, the more loyal buyers, even if price fluctuates. That means, you can sell high-quality products for a bit more expensive price, customers will fall for an alternative merely because of slightly higher cost as shown in the graph below.
8. Build customer loyalty programs the right way
Giving out some added benefits to attract customers to re-buy is the basis of any loyalty plans. But first, put yourself in your customer’s shoes and ask yourself:
- Why do customers want to use your loyalty program?
- What will they get from this program?
People love being VIP or “gold”
A study from Stanford University confirms the use of positive traits to make people engaged intensively in something. The customers want to be part of something “amazing” or “awesome”. To motivate customers to repurchase, you better make them a VIP or “golden” member.
9. Reward your loyal advocates
Say thanks to those recommend your product/service to others
The power of referrals is undeniable. Don’t let your customers miss opportunities to give user-generated content. Encourage them to recommend your products!
If they suggest your product to a new customer, let them know that you are grateful for the referral. Perhaps you should do more than a thank you because 20-50% of referrals will result in a successful sale as announced on Hubspot.
It would be even better if you had a referral policy. This is a win-win relationship, you have new customers, your existing ones also have a bigger motivation to buy from you again. Businesses can use their VIP services as a reward for referrals to provide a high-end service experience. Many customers want to stick with the premium after the trial ends. Some referral successful examples that have used this policy are Dropbox or Evernote.
It’s important to attract new customers, however, if you are unable to retain existing customers and build loyal customer support, the long-term health of the business is in jeopardy. Sustainable customer loyalty must be based on product quality. Once your company’s products or services meet the current and foreseen needs of the customer, the business can take advantage of the above ways to boost the customer retention rate and grow a long-lasting successful business.
Anyway, happy getting back customers!
About the author:
Hannah started as a copywriter, but it turns out her true passion is e-commerce marketing.
She is naturally inquisitive about human behavior and its interaction with the digital world. Now, she’s part of the HappyPoints team with a goal to help Shopify merchants boost their business.
Her team helps merchants launch their e-commerce websites and optimize their sales conversions with fully managed Shopify store setup and theme customizations.