Online retailers are always looking at increasing their revenues; one of the best ways of doing it is to get repeat customers.
Several studies say it costs between 4 and 10 times more to acquire a new customer than it does to keep an existing one.
As an E-commerce owner, are you aware that repeat customers are responsible for generating 40% of a store’s revenue? It might sound hard but is actually easy to accomplish.
It is a tried and tested way to improve your sales, even if you are new to this business or are a seasoned ecommerce player anyone can take heed to these actionable tips, which are on offer in this article.
- Exclusive discounts for loyal customers
Everyone likes to be treated special, in line with this thought, offer your customers exclusive access to the site for special discounts. You can give this exclusive access, 1 or 2 days before the discounts become available to the general public. This will truly mean a genuine advantage for being a loyal customer. You can also do this discount special by making available a special promo code for a limited time that will give special 20-30% discounts. This kind of exclusive discounts is one of the most popular loyalty perks for customers.
Convey through emails to customers about items left behind in carts by customers. You can send visually appealing email (showing the product) to the customer, to show them exactly what they considered purchasing while browsing through the site last time around. A recent survey showed that email marketing helped 29% abandoned carts to be recovered.
One of the most powerful ways of making a customer do a repurchase is to nudge them to buy a product. You could also remind them about something additional they need to purchase in going with their previous purchase. For example, if a customer has bought a pencil, remind them to buy a pencil sharpener.
- Send emails reminding of abandoned cart
If you have demographic data about the customer, you can make a personalized offer to the customer based on his/her likeness. Suppose if you are targeting a customer who is 21 years old, you can send him back-to-college offer for clothing, backpacks, school supplies etc. A recent study suggested that personalized offers help increase click-through rates by an average of 14% and improves conversion rates by an average of 10%.
One of the ways of re-targeting, follow-up email can be at the bargain hunter. There is no better way to stay on top of the mind than with a coupon. Knowing this, you can send an email stating that we have noticed you have not been coming to the website anymore, with the addition of a coupon. Starbucks is famous for sending such ‘we miss you’ emails to its customers.
People respond positively to social proof. In the sense, if you show people a pair of shoes, bought over by a 10,000 people they are likely to react positively. This is a fact and there are real psychological factors at play here. You can do this by tracking purchase data (or Facebook likes) for specific products or soliciting actual customers’ reviews and displaying it on the website and in the emails to many of your customers. This is one of the ways of finding repeat customers.
There needs to be financial incentive for the customer for having made the first purchase. In addition, there needs to be avenues for saving money on subsequent purchases. According to a study, 54% buy more from companies when they are rewarded for purchases. In another survey, it was found that loyalty programs help increase market share by 20%. Nordstrom is one such company that has benefitted tremendously from its loyalty program. They encourage customers to sign-up to receive special benefits, which include reward points that can be redeemed for products as well as early access to sales.
This kind of approach helps in earning repeat customers. If you have the physical address of the customer, you can send exclusive sales, discounts and special offers by snail mail. It is to be noted that a direct mail is a way of saying ‘thank you’ to the customer for their loyalty, so there should not be an overemphasis on pushing sales. The trick is to keep the sales part subtle.
Overall it is always a good idea to target the existing customers. It is the proverbial ‘low hanging fruit’ that a company must exploit in order to succeed in increasing sales. Also, if your e-commerce firm is finding it cumbersome to handle all the tasks to run the company in a smooth manner. You can assign your errands to GetFriday. At GetFriday we take care of major tasks associated with e-commerce domain such as inventory management, order processing, order tracking and customer support.
- Offer Personalized products