So, your business has made new sales and obtained new customers through BFCM & the holidays. Now what?
Research shows again and again that customer retention is the key factor of growth. Especially for Direct-to-Customer business models.
Small improvements in customer retention (i.e. 5%) can lead to major increases in profits (i.e. 25% to 95%) in multiple ways:
- Reduce the cost of marketing (i.e. 5x more costly to acquire new customers)
- Repeat (and regular) purchases provide a stable source of revenue
- Loyal customers are more likely to promote your products to others via word-of-mouth.
- 5% Improvement In Customer Retention Can Improve Profits by 25% or More :moneybag:
Despite the benefits of customer retention, businesses often place more focus on “getting more sales” or acquiring new customers. While growth through new customers is important, paying attention to customer loyalty can be a much faster way to revenue growth :chart_with_upwards_trend:
How do you increase customer retention?
- Marketing research points to three areas where you can increase retention:
- Executing exceptional customer service
- Implementing loyalty programs
- Providing unique customer experiences.
Learn how to grow your e-commerce business with stability using retention, through our expert app partners that will help you improve in:
- Loyalty & Rewards
- Personalized Experiences
- Exceptional Customer Support
- Segmenting Audiences & Best Email Practices