Engaging Repeat Customers Will Lead to Maximizing Marketing ROI and Drive Revenue
Do you know how many of your customers come back for more? Do you let them forget about your company after one purchase, or do you have a strategy for earning repeat customers? It’s a common misconception that they will just come back, but you do have to earn your repeat customers. Being cognizant of customer lifetime value throughout the marketing and buying cycle will drive repeat customers and revenue.
Getting More Dates
Think of getting customers as a courtship – it takes a lot more effort and thought to get someone to go on the first date than the second (at least that’s the hope). It’s the same with customers. Acquiring a new customer in eCommerce takes a lot of resources, and that will only get worse as the number of online retailers continues to grow. Marketing to a wide audience that might be interested in your product should get you some new customers, but why not focus on getting the most from the customers that you already have?
How to Mold Loyal Customers in eCommerce
In general, there are a lot of factors involved in building loyal customers, from quality products to a positive buying experience. Brick and mortar stores have a great deal of control over the latter – store design, displays, smiling staff, etc. – but the game is a little different in eCommerce. There is no physical atmosphere that you can control beyond your web store design or face-to-face interactions, so it forces you to focus on the few essential things that you can control. Strong customer service and the ability to gather useful information about customers are both essential. This is where eCommerce can be at its best. Knowing what products customers browse, buy, etc. can help you target customers with specific marketing relevant to each online shopper.
At the heart of retaining customers is excellent customer service. There aren’t many opportunities to interact with customers in eCommerce, so making sure to respond promptly and professionally to inquiries and handling product issues and returns with generosity will create the positive vibes, confidence and familiarity that will lead customers back to your site.
ROI and Customer Lifetime Value
The key is moving beyond the initial sale and focusing on customer lifetime value (CLV). A customer’s CLV includes the total value of a customer to the company, taking into account total purchases. Using this metric allows a company to calculate how much they can afford to spend on attracting customers. For example, taking a small hit on profit for the first purchase of a customer who will end up being a repeat customer will be well worth the initial loss. That small discount can make a big difference to customers and get them to return.
Customer Lifetime Value Success
One company who has been able to capitalize on Customer Lifetime Value has been Value Pet Supplies. Nick Carter, Marketing and Sales manager at Value Pet Supplies recognizes the importance of creating positive experiences for new customers to give them a reason to come back, “Creating repeat customers has been key for our business to keep expanding. We’ve leveraged Cloud Conversion CRM reporting and dashboards to better understand the needs of individual customers and overall trends making it easier to get customers to come back.”
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