How to retain your best customers (4 actionable strategies)

Do you want to turn first-time customers into loyal brand advocates? If so, it's time to start thinking about improving your retention rate. Customer retention rate is the number of people who place multiple orders on a website over a predetermined time.

The time you choose to wait before classifying a buyer as "churned" will vary based on your industry and unique product catalog. Some consider a customer lost if they don't place an order in two months, others may opt to wait for a year.

Why Improve Your Retention Rate?

Regardless of your specific strategy, there's no denying the benefits of keeping existing customers engaged with your brand. Repeat customers are more likely to attend events, engage with you on other marketing channels, tell their friends about your company, and much more.

Here's where it gets interesting; research shows that repeat customers tend to spend around 67% more than first-time buyers. This statistic means if you can keep existing shoppers coming back to your site, you're likely to see a boost in your average order value (AOV).

It's also worth noting that it costs 6-7x more to convert a new visitor into a customer than it does to retain an existing customer. So, if you're interested in improving your profitability and lowering or diverting your marketing costs, improving your customer retention is the way to go.

Now, let's look at several strategies you can use to win over first-time customers and keep them coming back for more.

Start a Loyalty Program

Loyalty programs are an excellent way to convince buyers to return to your site. This strategy predates modern digital marketing, but the internet has made it easier to offer this feature to customers around the globe.

Back in the day, companies like McDonald's and Starbucks gave out customer loyalty punch cards. The cashier would use a custom hole-puncher to mark the card whenever someone came in to get a burger or coffee. After the sixth time, the customer was rewarded for their loyalty with a free product.

In eCommerce, this principle largely remains unchanged. However, the loyalty marketing tools available now make it much easier for small businesses to add this feature to their site.

There are two popular ways to add this type of program to your site.

1. Point system - Users are rewarded with points that they can convert to store credit
2. Freebie - Essentially, the same system as the punch card, but modernized

Customers who were already convinced to come back will reap the benefits of this system, which will make them like you even more. Meanwhile, you can win over new customers by introducing them to the reward system after completing their first purchase.

Collect Feedback Throughout the Sales Process

Customer feedback is crucial for keeping shoppers invested in your business. Getting inside your customers' heads and understanding what they expect from your business can help you fine-tune your website and marketing strategies. Plus, long-time visitors will enjoy seeing their thoughts shape your brand.

Data from on-site feedback forms, social media, and email surveys are jam-packed with information that you can use to determine what's keeping customers coming back and what's pushing them away.

It's important to consider data from all sources in this instance, not just paying customers. There's a good chance that some people who haven't bought something from your site might change their minds if they see their suggestions come to life.

Collecting feedback throughout the entire sales process allows you to put each phase under a microscope. You'll likely find many opportunities to boost your retention rate if you look carefully.

For example, if repeat customers tell you they want an option to reorder a previous purchase with one click, that is one feature you should add to your checkout page as soon as possible.

Similarly, suppose new email subscribers mention in a survey that they don't fully understand why they need your brand. In that case, you can start working on a customer education series to show users the value of your product or service.

These seemingly small encounters can have a massive impact on your retention rate, so this is one strategy you don't want to ignore.

Engage with Your Audience Across all Marketing Platforms

Now that you know why it's essential to gather feedback from your audience let's talk about other ways to keep existing customers engaged across multiple platforms. If your goal is to improve retention, you're definitely going to want to develop a robust social media and email marketing strategy.

Why?

Well, when compared to single-channel marketing, omnichannel marketing can improve retention rate and engagement by a whopping 90%!

The truth is, most people are not going to go to your website every day. You have to meet them where they spend their time if you hope to turn them into repeat customers.

Social media is an excellent place to connect with prospects and existing customers. Believe it or not, well over 4 billion people use sites like Instagram, Facebook, and Twitter. In other words, there are countless opportunities to connect with your audience and build brand loyalty.

Here are a few ways we encourage social media engagement:

• Broadcast live video events (Webinars, AMAs, and interviews)
• Host online giveaways
• Respond to comments on our posts
• Share articles from our blog

Email is another channel that you should pursue if you want to boost your retention rate. We found that 58% of internet users say their email is the first thing they check online in the morning. If you can deliver high-quality emails to your customers, they are more likely to eventually make it back to your site.

It's possible to improve your open rate, and thus, your engagement rate, by making your emails relevant to each user. Personalization can have a massive impact on how customers perceive your brand. Surveys show that an impressive 80% of online shoppers say they want businesses to personalize their content and offers.

When emailing existing customers, keep their past purchases in mind and use this information to guide your message. So, if you have a clothing store and someone bought three pairs of shoes, you might include an offer for 20% off their next shoe order. You can also include relevant articles like "The Top Most Comfortable Shoes of 2022."

Because the topic and offer are relevant to that customer, they are more likely to return and place a new order.

Make it Easy for Users to Find Answers

Finally, I want to briefly touch on the importance of making it easy for users to find answers to their questions. I'm sure you've purchased something from an online store, and suddenly, you realized you have questions; we've all been there.

If you couldn't get your questions answered, you probably didn't place a second order with that business.

You want to do everything you can to avoid giving your customers the feeling that their questions can't be answered. Luckily, there are quite a few ways you can simplify the process and quickly help new customers with concerns or advice.

I suggest adding a live chat option to the bottom of your site. You should clearly show that your team is available and ready for questions. This will prompt both prospects and existing customers to get in touch if needed, which can save countless potential lost sales.

Business leaders selling somewhat complex products, like SaaS, should consider the benefits of adding a knowledge database to their site. Sometimes users don't want to talk to customer support; instead, they would rather look for the answers themselves.

A database that contains key details of your products, FAQs, and step-by-step guides can drastically improve your retention rate. When shoppers can harness the full value of your product or service, they are more likely to become repeat customers.

Back to You

As you can see, there are plenty of ways to retain your best customers and keep them engaged for years to come. You'll want to experiment with different strategies, gather feedback, and review your analytics. If you keep track of everything you learn and make gradual changes that reflect your target audience's goals, pain points, and interests, you'll have no problem boosting your retention rate.