Focus on New Customers? Existing Customers Are the Most Profitable

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Anyone involved in digital marketing knows that new customers are more expensive . Quality leads only get more expensive and it doesn’t matter which channel they come from. In fact, it’s much cheaper to get existing customers to increase their engagement with the organization or brand to make repeat purchases. This process is called customer retention and for those who haven’t figured it out yet, it’s all about science. Customer retention isn’t just about handing out promos to disappointed customers who threaten to leave for competitors, it’s about increasing the return rate of customers and turning them into long-term referral customers .

The retention process has distinct advantages: it keeps the order value of existing customers high , with studies reporting a 70% jump in customer order rates after a period of two and a half years. In addition, it increases brand loyalty in a way that allows brands to extend and increase the cognitive asset created by customers. For example, fashion retailer Zara can also sell home decor items while remaining relevant to home decor retailers. Customer retention also produces satisfied brand ambassadors, who in turn benefit from smart word-of-mouth marketing for free.

However, in order to implement a customer loyalty strategy, it must include belgium telegram phone number list several important indicators for its success. The first and most important of these is the repeat customer index and it includes the number of customers who have made more than one purchase in a certain period of time (most studies indicate a year, but some also measure periods of six months, depending on the product). The second index is the purchase frequency and it indicates the periods of time during which customers return to buy after the first time; And the third index is the average order value and it indicates the amount of money that customers spend on each transaction on the site.

Another metric that is considered critical for the implementation of the loyalty strategy is the calculation of the customer lifetime value . In other words: how much is each customer really worth over a certain period of time. The answer to this question lies in the product of the frequency of purchases and the value of orders. In addition, it is important to also measure the customer abandonment rate and ensure that it is as low as possible. The big question is: how do you manage to meet all these indicators? It is recommended to read and save.

1. Opening personal accounts
One of the most effective ways to retain customers over time is to allow them to access open private accounts. By opening an account, it is easy to create a following, collect data on previous orders and purchasing habits and of course create automated customer journeys that confidently accompany customers towards the next conversion.



2. Use of marketing automation
Creating customer journeys across all marketing channels meets the customer at every stage of their decision-making process and helps the company understand how ripe they are for a repeat purchase. Sending compelling content via email, SMS or WhatsApp strengthens the relationship with customers, increases their engagement and most importantly: creates control and tracking of their activity. A “thank you for purchasing” email, an “abandoned cart” email or a “back in stock” message are the most common and their role is to encourage short-term sales.

3. Service and support experience
There are many reasons why customers might leave or become frustrated, but there is no doubt that a negative service experience is the main one. Therefore, the most basic recommendation is also the most complex: immediately improve the customer service system on the site. Either by implementing a live chat or a sophisticated bot that provides a first response to customers, or by strengthening the call center. The conclusion is clear and clear: no customer is left without a response .

4. Implementation of loyalty programs
Loyalty programs or affiliate programs are a great way to build customer loyalty and generate high engagement frequently . In most cases, the cost of creating a club is not high and it is easy to maintain over time. The goal is to offer benefits and discounts to loyal customers for repeat purchases and to prioritize them in the purchasing process, such as shipping, return policy, product launches, etc.

5. Personalization
A personalized shopping experience for each customer increases the customer lifetime value from the first purchase. Personal reference will also enable the collection of reliable data, feedback and satisfaction surveys and subsequent customization of associated products. Personalized marketing is one of the most important growth drivers for any business in the digital age across all channels.