Organically Grow Community

The backbone of any successful business is repeat customers. Retailers often fall in to the trap of expending large amounts of resources to look for new customers, whereas experts have noted that investing in existing customers consistently brings more revenue over time. The impact that customer retention can have on revenue is quite substantial, quoting a study done by Harvard Business School, “increasing customer retention rates by 5% increases profits by 25% to 95%.” It would be in the interest of any prudent executive to take heed of these numbers.

There are many ways in which customer retention percentages can be increased, but the most effective methods are ones that grow over time organically. Creating a community which your customers feel happy to be part of is the best method to keep customers loyal over the long haul. This can be done in a lot of different ways; here are a few of them that are easy to implement:

Social Media -- If there is one thing that impacts customer retention/loyalty in today's marketplace – it’s social media. People are more likely to do business with a company that they feel a personal connection to in some way or another. Social media allows businesses to speak directly to their customers, in fun and engaging ways. Facebook giveaways, humorous YouTube commercials, Twitter accounts run by corporate executives – where customers can directly speak to the business owners and create a personal connection.

Customized Emails -- Emails are a corner stone of eCommerce, and are among the most important tools an eCommerce business has. An excellent way to utilize emails to help customer retention is to customize emails. Send people emails about what they have purchased in the past – provide a list of accessory products, helpful tips and reviews – and suggestions for related products they may be interested in. From time to time, send them deals specifically for being a repeat customer – and let them know that their business is greatly appreciated.

Customer Service -- When a customer is treated with respect and made to feel they are important, the likelihood of them returning is much higher. Answering customer emails and phone calls in a professional and timely manner goes a long way. Make sure that there is ample information on your website that can answer most questions that a potential customer may have. Also take the time to build up a strong reputation with your customers, invite them to provide reviews about your products and services. This establishes believability and promotes community on the site. Post the bad ones too. It’s all about trust.

The key to take from this is that successful business practices leading to customer retention should be looked at as more of a marathon than a sprint, and although the benefit seems small at the start of the relationship, it pays off greatly over time.

If you would like some more info on how to grow your eCommerce community, give us a call. 

Building the best eCommerce sites is what we do!

San Diego Media
800.808.8696

www.sandiegomedia.com