Why Customer retention?
Customer retention is one of the key factors for a successful eCommerce business, as Amazon demonstrates on a daily basis. It refers to the activities and actions you take to keep customers engaged and interested in your products and services. Most companies spend more money on customer acquisition than on retention. This makes little business sense as a) You've already built trust with existing customers and b) studies show that it costs up to seven times more to win a new customer than to engage an existing customer.
Don't let customers fall off your radar: Just because an existing customer is not buying from you, doesn’t mean you put them on the sideline. It pays to show up from time to time. A great shopping experience for your customers depends on what you do between sales.
Not convinced? The proof is in the numbers:
How Much Are Your Existing Customers Contribution to Your Current Sales?
It Is More Critical Than Ever To Focus On Your Existing Customers
10% increase in customer
retention yields a
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in the value of
The probability of converting
an existing customer is
vs. 5-20% for a
retention rates by
With unlimited options available to consumers, we all know how difficult it is to get a slice of their attention.
But if you’re spending all (or even most) of your marketing budget on attracting new clients, you’re missing an important revenue opportunity. And it’s probably costing you more than you may think.
Businesses always try to woo customers during the buying cycle
But what happens after all your efforts pay off and the customer buys from you? What happens after the payment clears, and you’ve sent the invoice? Most companies put their focus back on new customer acquisition.
The cycle continues until the old customers come back to do more business. But the question is: Will they come back?
The answer is simple and shown in your own KPI: not unless you give them reasons to do so. Over 85% of merchants have a share of returning customers that is below 15%.
Introducing Reconnect. The simplest and most automated way to improve your retention service.
Reconnect automatically identifies your non-returning customers, generates smart product recommendations based on their last purchases,creates a personalized and branded email and targets your non-returning customers after 30, 90 and 180 days to keep them engaged with your store.
Reconnect's 1-click integration and pre-designed, responsive templates allow you to automate your customer retention in minutes!
|How much time?||On my own||Email Service||Reconnect|
|Template Design & Branding||+|
|Personalizing Email Content|
|Total hours||30 hours, per month||15-18 hours, per month||Only 10 minute setup|
|Is this included?||On my own||Email Service||With Reconnect|
|Targeting non-repeat buyers||X||X||√|
|Automatic product recommendations||X||X||√|
|Open & click rate stats||X||√||√|