When you are running an e-commerce website, your efforts are usually focused on getting as many customers as possible. You do that by employing SEO strategies to help drive more traffic to your website and you should hope that you gain some customers from the people that do visit your page.
That being said, if you have acquired new customers, your next move would be customer retention or retaining customers in a way that they keep coming back to your website to buy your products.
A lot of online entrepreneurs may have been quite successful by doing the things that I’ve mentioned above, but even if they have already established their businesses, they still think of acquiring new customers as opposed to making your existing customers happy. In other words, they are more centered towards thinking about customer acquisition than customer retention.
Well, in this article, I will tell you why the latter is always better than the former.
It is Cheaper
About 70% of online entrepreneurs say that retaining customers is actually way cheaper than acquiring new ones, so why the heck would you be focused on getting more instead of retaining what you have?
The reason why it is cheaper to retain customers as opposed to getting new potential ones is the fact that they already have a vested interest in your business, which means that you no longer have to spend money on additional marketing efforts.
Instead, what you should focus on is to implement a customer loyalty program so that they will be enticed to buy some more.
It is Much Faster
As stated above, your existing customer base already knows the products that you sell and convincing to buy some more of your products is so much easier.
For example, if you send out an email stating that they get 10% off their next purchase, then that is so much easier than refocusing some of your money to entice new potential prospects.
Remember, it takes quite a tremendous amount of time to convince new people to become your customers as opposed to just making your existing customers happy.
You Gain the Upper Hand
Thinking about customer retention is even better as it helps you gain the upper hand over your competitors. Studying your existing customers is easy and the data that you can collect from your study can help with your retention efforts.
In your quest to find out more information about your current customer base, you will find what they really like. For instance, if you see a customer’s profile and you judge it by your site heatmaps, you might find that they particularly go to the clothing section. In your follow-up email, you can send them a letter where you provide them with coupons that they can use on their next purchase.
By setting up and improving your customer retention efforts, you will gain the advantage in your industry.
Loyal Customers Will Support You
New customers may still not know anything about your company, but your previous customers do. That is why focusing your efforts in making sure that they come back to your company is vital. Loyal customers will always support you.