Research says it is seven times more expensive to acquire a new customer than it is to retain an existing one. And it is getting expensive by the day as you read this article. As more and more e-commerce stores emerge in the market, the demand for PPC (Pay Per Click) shoots up.
To combat the ever-rising digital marketing costs and stagnation in the growth, today’s business houses use retention strategy to their rescue. There are several retention tools available in the market which can solve your customer issue comfortably. However, managing those tools isn’t easy.
The solution is to use a loyalty program as a hub for your retention strategy.
Here are a few examples of how a loyalty program can help you bail out of this situation and can make marketing efforts easier by centralizing everything in one place.
Incentivize Other Efforts with Points
A lot of times, shoppers are interested to know “what’s in there for me?” while deciding to make a purchase on your site. Though it is incredibly valuable a very few customers take the pain to share your store details on their social media network even if they buy a product from you.
To handle this resistance, you can reward this behavior through redeemable points for their next purchase. This completes your marketing activity including both retention and acquisition through sharing it with a friend.
As soon as a customer realizes that the points they make have real monetary value, they get motivated to complete the said activity in demand. Be it sharing on social media or with friends, they surely will become a part of it. More retention gets you more repeat customers, and repeat customers establish trust in your brand which is the most valuable element in e-commerce.
Discounting is one of the ways you can ensure your store to death. This major pitfall has the potential to reduce your average order value, customer lifetime value, and the bottom line of your business. Customers are very smart and if you like many others try to get more referrals, sales, or shares by offering a straight discount, your clients will never intend to pay the full price. They will have an expectation set in stone that your store is discounted.
Although discounting is sometimes necessary to get the ball rolling, but it can do some serious damage to your brand image and sales if you offer it too frequently or if you consider yourself a luxury retailer.
Loyalty program, on the other hand, can save you in the long run as it uses reward points rather than offering straight discounts. Points do you three favors –
- They do not project you as a discounted store
- They make your customers feel privileged
- They encourage users to continue to purchase all items at full-price.
This makes room for you to kick start your marketing efforts and avoid the negative effects of discounting.
Have you heard of the saying, ‘too many cooks spoil the broth’? The more tools use, the higher likelihood that your communications have a fragmented look and feel. Every tool has its own layout. A tool for retention emails might send emails which look completely different from a referral program email. Making use of a loyalty program as a hub can judicially address this issue for you.
Use a single tool to put all your retention efforts to maximum use and bank on branding, customer engagement and attracting customers.
When you run your own business, the hours in a day are not enough. There is always something left to be done. Even then, checking the results and effectiveness of your multiple retention tools is the last thing you should be doing.
A loyalty program can gather all these tools into one location. Instead of looking at separate places for separate reports like checking revenue from loyalty members and number of purchases from referrals, you can derive all the information at one place.
Getting all the required business growth information from one single window makes it easy for business owners to understand their success rate and take informed decisions.
Centralize Retention with a Loyalty Program
Retention marketing is a long-term strategy, so be prepared to put in some quality time in planning for it and executing it after that. Research, brainstorm and invest in the right tools, before starting things off.
Adding a loyalty program can lead to some amazing results. In addition to this, create a central hub to fetch all required data concerning your customers and their purchasing power and habits. This will give you the maximum ROI on your retention efforts.
For further clarification on marketing strategies and running your e-commerce store, contact WebBee for a session and we can provide you the most economical and trendiest tricks to run your store successfully.
WebBee Global is globally trusted authorized Shopify development services provider company. WebBee Global offers complete Shopify Development solution, Shopify App Development, Shopify Theme Development, Shopify Plus Website Develpment and Shopify Customize store development.