Research shows that a mere 1 percent increase in retention can yield a 5 percent increase in per-customer profits. Furthermore, a customer who makes a second purchase has a 54% chance of doing so again. See how a customer retention strategy can snowball into customer loyalty?
So what should be the next course of action after getting shoppers to the checkout counter?
Give free stuff
Everyone likes free stuff so why not treat your customers with knick-knacks as a form of thank you? But don’t make this conditional or based on the value of the purchase. Make your gifts varied and useful. It can also come in the form of vouchers, promo codes, or discounts on their next purchase. This little gesture will make them feel good about your company right off the bat and will most likely compel them to come back.
Send personalised emails
Collecting email addresses from first time buyers, or even browsers for that matter, should be a standard practice among traditional retailers by now for email marketing. Online shops and e-commerce business have been reaping the upselling potential of this and it’s time brick-and-mortar retailers do the same.
But then again, no one really likes to be addressed in a generic sir/madam. Call your customers by their first name in every email. Take this is an opportunity to suggest items based on their most recent purchase. Send timely reminders to customers to make a purchase. Make email marketing campaigns, send newsletters, and provide free content. There are lots of automated tools that can be used to send personalized emails like MailChimp, SurveyGizmo, or Hubspot. This is a great way to show that you are thinking about what they might need and inspire them to continue doing business with you.
Listen to their feedback