The fourth heading we’re looking at in this post series deals with retention strategy. The motivation behind a good retention strategy is to provide your visitors with enough feasible reason to return to your site. It is a well-known business fact that it is more expensive to get new customers than retain existing customers.
In the first three parts of this series, we dealt with:
- Proposition Strategy – Presenting your products.
- Acquisition Strategy – How do visitors find you?
- Conversion Strategy – Converting visits into sales.
- Analytics Strategy – Analytical data used to optimize.
Setting up a good retention strategy can be tricky. The place to start is looking at what you already have. IF your online business strategy is set up correctly. Your website will be able to provide you with a host of options to implement a solid retention strategy. It is important to remember that retention strategy is implemented on your website and not on social media.
It is a proven fact that 68% of sales come from existing customers. This means that a 5% increase in retention creates a 95% increase in profits as proven by Simple CRM.
Here are some ways to improve the retention of existing customers:
- Technical support.
- Promotions — Surprise.
- Customer Relations Management (CRM).
- Response time.
- Loyalty system.
- Feedback and reviews.
- Trust relationships.
- Give some reward competitors can’t give.
Pointers for planning your retention strategy
When planing your retention strategy, you want to avoid the “plug-in” type of feeling. This is a little tricky, but let’s look at it from another angle. Visitors, the ones you are trying to build a relationship with, have a highly tuned, intuition when it comes to “genuineness”.
Everyone is a pro shopper and picks up on things, faster than you might think. The moment you present something in a fashion that even to the slightest degree hints, that your proposition is for the purpose of making money and not what they came for, you lose them.
The point is, if you’re going to offer after-sales services, you have to really want to do it, and your proposition strategy needs to reflect that 100%.
Offering technical support as part of your retention strategy
Here is an example of how you can implement technical support as part of your retention strategy. Almost any business can offer support services and after-sales services. Let’s take an example: A guitar shop really wants to attract more people to their website, so they decide to set up a paid technical online service.
What they don’t realize is that the opposition publishes a free once-a-month online YouTube show. In this show, they talk about changing strings and the workings of electric pick-ups, and more. All free of charge. Anyone can find the help they need by topic and watch the steps in the videos.
How many people will pay for advice?
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The thing about promotions
If you do not have any experience with promotions, you will most likely think attracting customers is easy. I simply run a couple of promotions and specials and give away a few things and BANG returning clients. You will most likely get a big surprise when it comes to the giving things away part.
This is a bit like having a pool in summer. People only do promotions as long as the promotions last. That’s a problem, stop giving away things and your clients vanish.
But everyone, does it? Yes, bigger companies can easily do this, simply because they do not cut profits, but first work out that when they create a promotion, it will bring in more money than their current methods. They have the ability to sustain promotions for an indefinite time — basically making the promotion permanent.
If you have a smaller business, you can still plan this and use promotions. But you need to know that if you do not work it into your whole business model on a permanent basis, you will only lose out on the deal and gain nothing.
keeping it short
In conclusion to all of this, you can only gain by putting a plan in place that actively works towards retaining customers and bringing them back, if it is to your website or feet in your shop.
Meet the Author
Renier is a Full Stack PHP Developer who helps businesses with digital transformation. Before starting Quickfood, Renier worked as a technician and a business owner in the hospitality industry and website developer. After a successful career helping various retail stores, leasing agents and more with their websites, Renier now dedicates his time to Cloud-Based Business Applications. Learn how Renier got his start as a Cloud Application Developer.