According to industry experts, you’re 14 times more likely to sell to an existing customer than acquire a new one.
It also costs five times less to cultivate the relationships that you already have with shoppers than to gain a new customer.
Customer retention is a struggle for many retailers because they take the wrong approach.
Since it costs so much and takes so much effort to gain new customers versus retain existing shoppers, brands need to maximize the opportunities to build relationships with their customers.
Companies need to present a distinct identity to break through the noise. Customers are inundated with so many messages from retailers that you need to stand out to build a relationship.
Many brands try to solve their retention problems by following others’ strategies, like putting their customers through a blanket welcome series that gives them 15% off their next purchase. The problem is, they end up blending in with everyone else.
Marketers need to show customers what their brand is, what it stands for, and create that personal connection that resonates with the customer’s identity and values.
This may take the form of a welcome series that sends them bits about your brand each week, including what you stand for, the ethics behind your brand, and how you're making your products.
That type of communication allows retailers and consumers to develop a personal connection, enticing the customer to come back to shop at a brand that stands for things they want to be associated with.
That’s the key to retention.
To gain insight into how to turn new customers into repeat customers, we turned to Nick Wiktorczyk.
Nick’s experience in driving retention for e-commerce brands at his company, Spently, gives him great insights on what brands need to do to create and execute a successful retention strategy.
In this episode of the Coherent Thoughts podcast, James Glover speaks with Nick about creating personal relationships between your brand and customers to drive retention.
Some of this week’s topics include:
- Balancing personalization and privacy.
- Leveraging customers’ moods.
- Why 2021 is the year of customer retention.
- The importance of leveraging transactional email.
Listen below or on your favorite podcast app. If you enjoy the episode, please leave a rating and subscribe for future podcasts.