8 Proven Strategies to Increase Customers Retention and Repeat Purchase

There are 3 important aspects to run a business: lead, customers, sales. A smart business sees the first purchase as a beginning because the real business value lies in retaining customers for repeat purchase in the long run.

What is customer retention

Unlike customer acquisition or lead generation, customer retention focuses on those who are previously bought from you. Customer retention is a strategy used to increase the return purchase rate of a customer. By using this strategy, you are investing to keeping your current customers loyalty instead of trying to find the new ones.

Why customer retention is important for a business

The major factors for customer retention is not only about your product price but a positive customer experience and customer relationship. When your customers are happy, they not only come to you regularly, they will be your brand ambassador to bring you leads that can easily convert to sales. By achieving it, read on the strategies below.

1. Listen to your customer by giving periodic surveys

Survey is an important tool for you to gain better insights of your customers. This is the first step for you to retain customers as you are going to design offers and services that really matter to your customers to improve customer experience. Send your customers a quick online survey every quarter or six months to know what’s working for them, and what isn’t. Here are some signals for when you can send a survey to your customers:

  • After each purchase (if your are selling high ticket items)
  • Every 3 – 6 months to keep up relationship and be updated on new trends
  • If your customers are unsubscribing newsletter
  • If your customers are not making any purchase in the past 6 months

Take note that you will never please every customer on every issue, but surveys can help you find out the patterns that you’ve missed. 

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2. Start a customer loyalty program

Loyalty program is a well known customer retention tool. This is why every cafe offers a punch card program where you get a complimentary coffee for every purchase of five cups of coffee or get a 10% discount if you’re a member. The idea is you are encouraging customers to enjoy the fruits (offer for next purchase) as the first purchase is always a foundation of their “investment”. In addition, you receive insights of your customer by collecting customer data with a loyalty program. The more your customers purchase with you, the more you understand their needs and the better you can personalise loyalty rewards. Starting a right type of loyalty program helps you keep your top customers and bring back the lost customers throughout your business journey. 

Learn more on how to create a loyalty program here.

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3. Catch attention with excellent customer service

You may be selling homemade bakery or fashion items just like everybody else does. How will you stand out from the red sea? By giving more discounts? Of course, pricing is a very important key to keep your customers coming back, your customers will also look at how fast you will ship out their orders, your support’s response time, whether their preferred payment options are available, etc. Hence, you need to consider moving from the red sea to the blue by providing excellent customer service. 

Here are a couple of practical tips for you to boost customer service to the next level:

  • Use calm and positive language when attending customer’s problems. 
  • Personalise your customer service by using customers name
  • Follow up with your customer after each interaction points

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4. Educate and inspire your customer consistently

Do not settle just because your customer has made a purchase. Do you know if your customers fully unlocked the potentials of the product they have just purchased? How to use these products correctly for the best result? Are there any other products from your store that can help in better solving their problems? 

Customer education helps your customers recognise the full value that comes from the uses and benefits of your products or services and then develop a deeper level of engagement as well as brand trust. This can be easily achieved by sending customers an email with relevant information after each purchase like:

  • A how-to tutorial of the products
  • FAQ of the products
  • Details of customer service team for after sales support

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5. Delight your customer with surprises and discounts

Businesses often offer deals to motivate customers. However, overdoing it could damage your brand and will highly reduce sales performance outside of the sales period. Follow guideline below to learn when and how you can give a discount:

  • Weekly or monthly deals – Give discounts at the end of the month or week to encourage purchase of the slow products.
  • Exit intent offers – If your subscriber is terminating your service, counter offer them with exclusive deals
  • Holiday deals – There are many holidays and celebrations especially in a multi racial country like Malaysia. Pick not more than 4 big holidays that really meant to the consumers
  • Abandoned cart offers – Giving little incentives like free shipping or discount to reduct abandon cart rate

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6. Establish a referral program

When customers are leaving positive reviews on your products or services on social media, you know they genuinely had a great time purchasing with you. This is one of the most powerful tools to bring you new customers that will trust and appreciate your service. However, you are not going to just sit back and wait to get word-of-mouth. Encouraging your customers by giving them rewards like discount or cash back for every new business referred not only helps you to bring more new business but also build a deeper relationship with these customers and they would love to come back to purchase more.

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7. Connect your customer by forming a community

To win your customers’ heart and keep them engaged is all about whether you are caring for them enough or not. Hence, forming a community forum is a great way of showing you are listening and will give them support instantly. Challenges, questions, or  new ideas can be voiced – and with everyone being actively involved, solutions are just an arm’s length away. Customers now know that they can build a genuine relationship with you and they always have your back by subscribing with you gives them the confidence to come back to you.

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8. Give special incentive to save your about-to-go customer

There are always reasons when a customer decides to leave. May it be the pricing or your service, you should find out the real reason. Then give special incentives accordingly like extending 30 days subscription for free or an appreciation coupon, allowing them to think twice for terminating service with you.

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It is always easier to retain your current customers than gaining new ones in the perspective of cost and effort. Pick some of the suitable strategies above, implement it to your business. It will take time and effort to enhance your strategy and develop relationships with customers to earn their trust. Stay put, don’t give in.

Looking for expert to help you improve customer repeat purchase? Contact us.

+603-7832 6103