Businesses often blow hot and cold when it comes to offering loyalty programmes in order for their customers to retain. Fortunately, looking at the importance of customer engagement these days, most businesses are feeling highly disposed to use the perks of customer retention solutions. Having said that, there are many things that companies still do not know about retaining customers. Here are some shocking facts about customer retention that you should keep up on.
1. A few customers bring the majority of sales
You might not know that the most sales your online shop gains come from a few customers. According to a market survey, 80% of an online retailer’s sales come from 20% of its customers. Shocking, isn’t it?
This statistic conveys the importance of the most loyal customers tremendously. This means, as an online retailer, you must know the importance of customer retention because your most frequent shoppers could be making you the most revenue.
2. Shoppers feel ignored
Perceived indifference makes many of your customers stop shopping from your store. A market study suggests that 68% of customers stop purchasing from a store because they feel the company does not care about them. Not giving your customers enough attention can affect your customer retention to a large extent. Provide the finest loyalty program solutions, so that you can keep your customers encouraged about buying your products.
3. Email marketing is a Need
Email marketing is an effective tool that you can use to improve customer retention rate. As per the statistics evaluated by a market survey, 80% of businesses use email marketing as their significant strategy to improve customer retention. Emails facilitate easy and smooth communication between your business and customers while allowing you to send personalised messages as per your customers’ needs.
4. Customers do not forget bad experiences
Offering a good experience to your customers is extremely crucial if you want them to shop from you in the future. Yet again, a market survey suggests that 82% of customers do not go back to shop from a company because they had a bad shopping experience. Why? Because negative thoughts stay in the mind of people for a long time. Thus, make sure you are greeting your customers in a warm manner and resolving their issues promptly.
5. Small start goes a long way
Starting from small progress is not a matter to worry about. Even the smallest improvement in customer retention can result in high revenue. Increasing customer retention by only 5% could increase the profit by up to 95% in your business. Since returning customers are more likely to buy more products from you than the new ones, it is always better to put your major attention towards customer retention.
The importance of customer retention cannot be denied. And, this makes it extremely important for the business to get enrolled with retention solutions.