Customer churn: it’s when a client breaks off the relationship with a company. They purchased once and now they’re done.
If you’re seeing a lot of one-and-done shoppers, retention marketing is for you. Unlike acquisition marketing, which is focused on gaining new customers, retention marketing focuses on keeping the ones you already have. Maintaining that relationship is beneficial in a lot of ways, and can do wonders for growing your business.
Why Retention Marketing?
The real question should be “why not retention marketing?” Attracting a new customer is anywhere from five to twenty-five times more expensive than retaining one. To put it into completely made up dollar signs, if keeping an existing customer costs $5, gaining a new one would cost somewhere between $25 and $125.
If that isn’t enough to get you excited about retention marketing, here are four more reasons to implement it:
- When you gain repeat customers, you'll start to see who your ideal client is. This makes appealing to them and delivering a great customer experience easier than ever.
- Loyal customers can become ambassadors for your brand. When someone loves a product or company, they’re likely to spread the word and according to Nielsen, word of mouth is the most trusted form of advertising.
- If your retention rate is low, you’re working harder to gain new customers. You’ll still need to work to retain your clients, but it’s much easier than acquiring new ones.
- Focusing on keeping your existing customers increases the return on investment (ROI) of those purchasers.
Sounds good, right? So, how do you put retention marketing into action? There are a few ways…
Customer Retention Strategies for your Shopify Store
When it comes to retaining customers, it’s all about the experience. It’s not enough to deliver a great product, although that’s still essential to your business. To really spike your retention rates, you’ll need to provide excellent service and create an experience that your customers want to have again. And in the age of social media, you should aim to create one they want to share.
Luckily, there's more than one way to do this. Not every strategy will work for every store, but there’s definitely one for you.
- Retention emails. Different from the regularly scheduled emails you might send out, retention emails show your customer what they’re missing and give them reason to shop with you again.
- Offer discounts. This is something you’ll probably do in retention emails, but it’s worth mentioning separately since discounts can be used outside of email campaigns. If you’ve offered a percentage discount in the past and saw lackluster results, try giving your customers a set amount off ($10 off, for example.) This makes people feel like they’re wasting money if they don’t use it!
- Loyalty programs. Offering a reward for loyalty to your store is a powerful and effective way to earn repeat customers. People will feel like they’re getting something extra just for shopping with you.
- Referral incentives. Offering an incentive for referring someone to your store is a great way to make people want to share your store because they really like your product and there’s something in it for them. It’s a win-win.
As you’ve probably noticed, retention marketing requires a different approach than traditional marketing methods. You need to nurture relationships with your customers, reward loyalty, and make them want to keep coming back for more. Switching gears to focus on retention rather than acquisition can be tricky, but it’s worth it, no matter what your business is.