Catching consumer attention is important, however, it is equally important to ensure that your customers remain with your brand. Not only do lost customers cost money—the global value of a lost customer is $243—but customers that stay with your brand are also more likely to bring in your base revenue and save your money. In fact, 80% of a company’s revenue is generated by 20% of its existing customers. This is perhaps because existing customers spend 67% more than new customers. Meanwhile, studies show that a 2% increase in customer retention can decrease costs by up to 10%.
The need for customer retention has given rise to in-store and online customer retention programs. Most often, these have taken on the form of customer loyalty programs. However, with the advent of e-commerce, the traditional schema of loyalty programs has been expanded to create new online retention strategies.
Perhaps the most compelling reason for expansion is the fact that loyalty programs are no longer unique. With 73% of customers expecting loyalty programs, it has become important for marketers to not only craft a loyalty program worth joining but to also tailor the program to the demands of the modern market by creating a more personalized experience. In fact, 90% of marketers agree that personalization is the future of marketing. Here are a few ideas that can help improve your online customer retention strategy.
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The Why: A video that your customer can relate to helps them feel like you are speaking to them on a more personal level. Instead of watching a random advertisement, customers are now watching something that was meant specifically for their attention. Customers will love this since 86% of consumers agree that personalization plays a role in their shopping habits. Meanwhile, personalizing your videos will also help you as the marketer create better-targeted advertisements by breaking your customers up into demographics.
For instance, when AT&T implemented personalized video billing, 80% of the video recipients opened and watched the videos.
The How: If you have any sort of loyalty or opt-in program, you probably already have all of the information that you need for creating personalized videos. You can start by segmenting a group of your consumers. You can choose your most loyal customers and offer extra incentives or choose a demographic such as location or age. Once you have your group, you can choose a video template and link data from your marketing’s automation platform to your video provider. The video provider then uses the data to alter certain aspects of a video to make that video more personal to your target audience. The goal, again, is to make every customer feel like your message is relevant to them in some way.
What You’ll Need: In addition to needing data about your customers, you will need video templates, a strong automation, or a CRM platform and a reliable video provider.
The Why: Virtual reality is particularly exciting to consumers and retailers alike because it’s become sophisticated enough to be used as a marketing tactic. The novelty of VR alone will entice customers into participating simply to experience the technology. Meanwhile, experts are saying that the VR industry is projected to grow into a $30 billion dollar industry by 2020.
The How: The way that you implement VR will depend on your business niche. With mobile technology improving, VR may soon be possible on a larger scale. Meanwhile, you can set up VR-like online modules where your customers can interact with your products and offer 360 views of your products.
What You’ll Need: Because most individuals lack VR compatible technology, you will likely need to wait before investing in an all VR design. However, a good, modern website design that maximizes interaction and simulates a store-like experience can still set you apart to your customers.
The Why: While traditional loyalty programs were limited to points per purchase, modern customer retention tactics have expanded the rewards schema. The changes are beneficial to consumers and retailers alike. For consumers, this allows for more ways to earn points. For retailers, this has given rise to various other marketing tactics such as referral marketing and user-generated content.
The How: Consumers can now be rewarded for social actions such as referrals, advocacy and even for simply interacting on the site. For instance, a consumer that checks in on social media with your business can earn loyalty points.
What You’ll Need: In order to enact such a diverse program, you’ll need a strong loyalty platform that includes features like sign-up, point accrual, redemption, and communication online, in your app, and in-store. If you are launching a new loyalty program, you will also need to launch a cutting-edge marketing campaign to make your customers aware of the benefits.
With plenty of available and novel options, there is no reason not to improve your online retention program.