How to Turn a One-Time Buyer into a Lifetime Customer
When it comes to business, acquiring new customers is essential to growth. But it's not just about getting someone to make a purchase once...
When it comes to business, acquiring new customers is essential to growth. But it's not just about getting someone to make a purchase once: It's about turning that one-time buyer into a lifetime customer - someone who continues to come back again and again.
Lifetime customers are precious to any business. They are more likely to spend more money on your store or service, and, being happy with the products, they also recommend the brand to others. And nothing beats traditional word of mouth.
What is customer retention, and why is it important?
Customer retention is the process of establishing long-term relationships with your customer base so they keep choosing your brand instead of your competitors.
There are many reasons why customer retention is essential, but right off the bat, client retention also makes a lot of sense when it comes to budget spending. Studies have shown that it costs up to seven times more to acquire a new customer than to retain an existing one.
Regarding the benefits of having a good retention strategy in place, loyal customers:
- Spend more money on your store or service because they trust the brand. A mere 5% increase in customer retention produces more than a 25% increase in profits, says Bain & Company.
- Are generally happier with your products and are more open to making further purchases. According to Forbes, "businesses have a 60 to 70% chance of selling to an existing customer while the probability of selling to a new prospect is only 5% to 20%."
That's why it's so important to focus not only on acquiring new customers (which every business is always aiming for) but also on turning those one-time buyers into lifelong fans of your business.
How to turn a new buyer into a loyal customer
Some of the most effective methods to achieve client retention include:
1. Offering quality products and services
The first and most important step is ensuring you are offering quality products and services. This is the foundation that everything else is built on and will keep customers returning time after time. If a shopper is overall satisfied with the product, the brand will always be on the back of their minds when considering making another purchase.
2. Creating a great user experience
Another critical element is creating a great user experience. This includes everything from the moment they click on your page or download your app all the way through to post-purchase follow-up. Is your website running fast? Have you considered launching a native mobile app that provides a seamless shopping experience? Make sure your customer's journey is as smooth and enjoyable as possible, and they'll be more likely to stick around.
3. Building a strong brand
A strong brand will also help to keep customers coming back. A trustworthy, consistent, and recognisable brand will create a sense of loyalty in customers and make them more likely to return in the future. Gen Z customers, for example, put a lot of importance on a brand's authenticity and transparency. Over a quarter of them also care about sustainability (28%). Understanding your target audience and what they value is crucial.
4. Providing outstanding customer service
Excellent customer service is another essential factor in keeping customers happy and loyal. According to Netomi, over 96% of U.S. consumers say having good customer service is important to them, with 82% reporting it is extremely or really important. This would go without saying, but the key is here: 62% of customers will recommend a brand to a friend because of its great service. You would not only retain a customer but also acquire new ones - for free. If you go above and beyond to assist them, they'll be more likely to remember your business when they need something again. Make sure your customer service is friendly, helpful, and efficient. You should also make it easy for them to reach you if they have any questions or problems, providing them with different channels to contact you.
5. Asking for feedback and acting on it
It's important to constantly ask for feedback and then act on it. Whether you're sending out surveys, collecting reviews, or just talking to customers one-on-one, make sure you listen to what they're saying and use that information to improve your business. Implementing reasonable requests is a game-changer: 53% of shoppers believe their feedback doesn't go to anyone who can act on it. If you show your customers that you're constantly trying to get better, they'll be more likely to stick with you through the ups and downs.
6. Keeping in touch after the sale
Finally, don't forget to keep in touch with your customers even after they've made a purchase. Sending follow-up emails or periodic newsletters is a great way to stay top-of-mind and remind them that you're always there if they need you.
You can make sure that your one-time buyers become lifetime customers by staying in touch with them after their purchase, following up with them to see how they are enjoying their product or service, and offering them loyalty rewards and discounts.
Changing the game
Considering all statistics described above, business revenue can grow exponentially when a good client retention strategy is in place. According to Invesp, almost half of companies (44%) of companies "have a greater focus" on client acquisition, while 18% focus on retention. It is only natural to try and get more customers, but it is also 5 to 7 times more expensive.
Implementing these retention strategies will put you ahead of the competition and help turn your one-time buyers into lifelong customers who are loyal to your brand. This, in turn, will lead to increased sales and profits for your business.
What a mobile app can do for your online store
If you're looking for a way to increase customer retention, one of the best things you can do is launch a native mobile app. This will allow you to stay in touch with your customers even when they're on the go and provide them with a convenient way to access your products and services. At StoreLab, we offer a no-code solution to transform your Shopify store into an amazingly fast native app. Just shoot us a message, and we will have your app running in no time.
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