Research shows it’s far more expensive to acquire a new customer than to retain an existing one. Just consider the marketing or sales resources, proposal or RFP responses, multichannel acquisition campaigns, and more, that go into landing a new client, compared to the endless opportunities and automated efforts that drive repeat sales from a loyal customer.
While converting prospects into new customers is a crucial aspect of every business strategy, customer retention focuses on driving loyalty among your strongest supporters. According to Crazy Egg, returning customers spend 31% more than new customers. Moreover, when you release new products, existing customers are 50% more likely to try them out.
Data from eConsultancy supports this trend, finding that revenue add-to-cart rate for a repeat customer is 23.5%, versus a new shopper’s 5.29%. What’s more, returning customers drive $10.67 revenue per session, versus a new shopper’s $1.73 – an increase of 517%.
How are you keeping loyal customers coming back for more? The key to customer loyalty lies in delivering a consistent and simple multichannel customer journey. Think about a vacation you’ve taken: the better the experience, the more likely you are to plan a return trip.
The best customer experiences are easy. They may not be flashy or sexy, but they stand out for not standing out. Your customer get answers to their questions quickly, find the perfect products, get a refund without a hassle, autofill credit card information, access invoices fast – the list goes on.
Does your website provide a frictionless, intuitive user experience (UX) that helps customers find the products and information they need – and fast? Is your marketing on-brand, consistent, contextual, and providing value? We’re sharing four must-have digital strategies to deliver an easy and enjoyable shopping experience, deepen relationships, increase order frequency, and continuously drive repeat sales.Continue reading 4 Ways to Use Digital Marketing to Increase Customer Lifetime Value