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Acquiring new customers has ever been rather a challenge, and it's getting much and much costly and time-consuming successful the realities of modern competition. Meanwhile, the main profits for businesses often travel from repetition purchases.
While the mean customer retention complaint crossed each industries hovers astir 75.5%, businesses should strive for higher rates, arsenic studies person shown that repetition customers walk importantly much — often 3 times arsenic overmuch — compared to one-time shoppers.
In this article, I want to stock the key moments to see erstwhile striving to clasp and turn the customer base.
1. Customer experience
Improving customer acquisition tin move one-time shoppers into loyal patrons, making it 1 of the astir effective strategies for semipermanent growth. A 1% summation successful customer acquisition leads to a 3.3% gross increase, while a akin maturation successful customer retention pays disconnected a 7% income growth.
Apple's customer restitution and loyalty person been continuously growing. A brand's attraction to item extends beyond the products themselves — starting from the packaging and ending pinch stores and design. For instance, they person a packaging designer who only useful connected evaluating prototype boxes. It transforms the enactment of opening an Apple merchandise into a sensory experience, reinforcing the brand's committedness to creation and quality.
Everything that is done by Apple follows the accuracy that "details matter, and it's worthy waiting to get it right." Thus, they attraction connected selling an experience alternatively than conscionable a product.
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2. Personalization
Personalization is each astir building stronger connections betwixt customers and businesses, which translates into accrued engagement, loyalty, and revenue. McKinsey investigation proves that 71% of consumers crave personalized interactions pinch brands, and companies that excel astatine offering specified experiences bask 40% higher gross maturation than their competitors.
Spotify's typical playlists are a awesome illustration of really companies tin usage individual information to create caller engaging experiences. For instance, their "Blend" playlist combines the listening habits of 2 users to create a unsocial operation that reflects the divers euphony tastes of 2 adjacent people.
This characteristic accrued engagement rates and the mean clip spent successful the mobile app. And it's not conscionable astir the personalization itself — it besides added an interactive societal constituent to euphony discovery.
3. Loyalty programs
Effective loyalty programs are different instrumentality for expanding repetition purchases and driving sustainable growth. 81% of consumers are much likely to return to brands that connection loyalty programs, pinch members spending 12-18% much annually than non-members.
Amazon Prime Day is an yearly two-day shopping arena for Prime members, featuring awesome discounts from apical brands and mini businesses, driving billions of dollars successful sales. This arena only proves the powerfulness of limited-time offers, altogether pinch the 'chosen one' status.
According to Numerator, 98% of attendees knew it was Prime Day earlier shopping, and conscionable complete half (53%) said Prime Day was their main logic for shopping. As a result, independent sellers sold much than 200 cardinal items, mostly from mini and medium-sized businesses.
4. Promotions and discounts
Promotions and discounts not only pull caller customers but besides create a consciousness of urgency, encouraging repetition purchases. According to RetailMeNot, 80% of consumers are much apt to make their first acquisition from a caller marque if offered a discount, and 68% are much apt to return aft receiving a personalized offer.
Dunkin' Donuts uses data from its Perks programme to connection personalized promotions based connected individual acquisition history, preferences, location, and moreover clip of day. This strategy pays off: soul information proves that 50% of DD Perks members sojourn much often erstwhile they person a tailored offer. For example, a customer who regularly buys java successful the greeting mightiness person a discount connected meal sandwiches. This level of personalization makes customers consciousness weighted and understood, fostering deeper loyalty.
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5. After-sales engagement
Proactive after-sales relationship pinch the customer strengthens trust, boosts satisfaction, and importantly increases the likelihood of repetition purchases. A Harvard Business Review study found that businesses that prosecute pinch customers post-sale bask a 20-40% higher customer retention rate, while 63% of consumers opportunity they're much apt to bargain again from companies that connection the pursuing services.
6. Building a Community
Building a organization astir your marque fosters affectional connections, drives loyalty, and stimulates repetition purchases by making customers consciousness weighted and involved. According to Sprout Social, 76% of consumers are much apt to bargain from a marque they consciousness connected to, and 72% will make repetition purchases if they're actively progressive successful the brand's community.
LEGO is actively processing its organization done the LEGO Ideas platform, wherever fans tin taxable their ain ideas for the adjacent merchandise and ballot for the bets they like. By incorporating UGC into its merchandise improvement process, the marque has not only engaged its assemblage but besides turned fans into loyal customers eager to acquisition products they've helped create.