It’s a common fact that it costs more to acquire a new customer than retain an existing one. In fact, it costs a company 6-7 times more according to Bain & Company. That’s why treating your customers right after they buy is just as important as it is before they buy. One of the easiest ways to grow your business is to keep your existing customers coming back. Let’s take a look at the customer retention math:
Company A has 1,000 customers and retains 90% of them year over year. Company B also has 1,000 customers, but retains only 80%. Both companies are adding new customers at a rate of 20% annually. Company A will experience a net 10% growth rate while Company B is not growing their customer base at all. If you look at it over several years, the retention growth rate continually compounds year over year. At the end of 9 years, Company A has actually doubled the number of customers while company B only has 700 customers out of their 1,000 starting point.
Returning customers are also known to spend more than first time customers. Ecommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers according to McKinsey & Company.
Returning customers are crucial to a business’s growth. Let’s take a look at a few ways to surprise and delight your customers so they remain loyal.
1. Say Thank You
It’s an obvious one, but it works. Customers like to feel appreciated especially if they just spent money with you. There’s a variety of ways to say thank you. It’s easy if it’s in person at your location: “Thanks so much for your business. Please visit us again soon.” If you have an online store, you can include a thank you note when you fulfill the product, or send a separate “Thank you” email message, and if you can, include a coupon towards their next purchase. Here are a few more ideas on how to show customer appreciation.
2. Get Customer Feedback
Asking for feedback about a customer’s experience or product quality shows that you’re engaged in your business and looking for ways to improve. Customers do have options to share feedback with review sites like Yelp. You should be responding to comments you receive on those sites. However, you should consider sending a satisfaction survey directly to your customers. Not only will you get valuable feedback to help you make improvements to your business, but it keeps your business top of mind with customers.
3. Consistently Communicate
Reach out to your customers on a regular basis. Whether it’s a newsletter, coupon or an event invitation, customers want to hear from you about new products, services, discounts or events. Here’s a guide with some ideas: 9 Emails Your Business Should be Sending.
4. Highlight a Customer Experience
Showcasing one of your customers in your store, in an email newsletter or a re-tweet can garner great engagement Everyone likes a little attention paid to them or their cause. If you’ve got a customer raising funds for a charity, offer to put up a flyer in your window, sponsor their cause, tweet about it or mention it in one of your blog posts. Sending birthday or anniversary wishes is another way to let customers know that you care.
By sending regular post purchase communications you send the message that you care about more than just selling. These four tips should help you on that journey.
Have you discovered other ways to delight customers after they’ve purchase from you? Share your ideas in the comment section.
Stay connected with your customers by emailing through VerticalResponse – It’s free up to 1,000 contacts.