Investing in new Magento eCommerce customer acquisition strategies is important for a retailer to stay competitive and flourish but customer retention is just as important if not more so. Existing customers shop more often and have a higher average order value.
Because customer acquisition costs are increasingly higher and traditional marketing and advertising strategies are less and less efficient, it is essential to develop an effective customer retention plan that will increase each client’s lifetime value. Loyalty research from Accenture Strategy found that traditional ‘low price, reliable service’ mechanics are not as effective as they used to be.
Effective customer retention programs will increase customer engagement and purchase frequency.
Keep your best customers feeling special and valued.
Reward or Frequent Purchase Programs
Classic rewards programs are point based. Customers accumulate points that can be applied to future purchases.
Magento retailers: There are many popular Magento extensions that can be used to integrate reward programs into your website.
Many marketers are looking beyond dollar rewards to create and retain customers. Loyalty programs are longer-term marketing efforts that offer a balanced mix of benefits and rewards to customers who demonstrate loyal buying behavior. Tiered programs can be structured to reward higher spending customers with even more.
Read Accenture’s report on the evolution of loyalty and tailoring your rewards programs to meet the expectations of younger generations including Millennials.
Magento retailers: There are quite a few Magento extensions that can be used to integrate loyalty programs into your website. Cloud-based solutions such as Smile.io (Formally SweetTooth) and Zinrelo are also options but incur monthly fees.
Provide Personalized Content
The demand for personalization in retail is real and it’s growing. Almost 70% of online shoppers indicated that they want and expect more personalized shopping experiences. The goal of personalization is to make it easier for your customers to shop and buy the products they want – when they want them.
Personalization software uses data from your eCommerce store to create relevant shopping experiences for individual website visitors. eCommerce personalization is often based on demographics, purchase or browsing history, past consumer behavior as well as customer profiles and interests.
Magento retailers: Fresh Relevance is a digital personalization software platform used to deliver personalized content and messages to customers.
Refer a Friend Bonus Programs
Word of mouth is a great way to grow your business. An important marketing goal should be to develop brand advocates out of your most loyal and informed customers so they tell others about you. These customers have purchased from you and are familiar with your brand and product’s value. Generally, the referrer and the recipient receive a financial reward that encourages them both to keep referring – and shopping.
Magento retailers: Referral Candy is one platform you can use to develop Refer a Friend programs. There are also quite a few Magento extensions available to get you started.
Send Post Purchase Emails
Extend your personalization efforts beyond your website by using personalized email correspondence. Email is one of the most essential communication channels retailers have.
Magento retailers: Email autoresponders, such as that provided by Klaviyo, use data from your Magento eCommerce platform to deliver highly relevant and personalized marketing messages to customers.
Establish an Emotional Connection
Younger audiences especially are apt to buy from a company whose values are aligned with theirs. Harvard Business Review found that one of the most effective ways to maximize customer value is to move beyond simple customer satisfaction and relate to consumers at an emotional level. Studies show that emotions are the main drivers in the decision-making process – not logic.
Many customers choose to align themselves with a brand they trust that offers a sense of meaning and purpose. Patagonia, an activist company that commits themselves to the protection and preservation of the environment, does a great job of connecting with customers on a personal level. Their values are reflected in every aspect of the business, from infrastructure and logistics to partnerships and fair labor.
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