Seek any business professional and you will see their mind is fully focused on the growth strategy. For any business, be it small scale or large scale constant growth is a must. When you are starting a business, the major concern is how to make it sustainable over time. People think the key to the success is procuring new customers. Though attaining new clients is as much important as any other thing in business, relying on them to elevate your business is not always as lucrative and favorable as you may think.
You must have heard it time after time that it is more affordable to get present clients to make repeat purchases than it is to find new clients. This seems to be true for plenty of businesses, especially those having a crowded and heavy e-commerce arena and using an Online Payment System.
Procuring new clients is way more costly than retaining the current ones. Repeat customers are more valuable as they bring in a major amount of profits and revenue to the business. According to some studies, it has been noted that over 40% of the revenue and enhancing client retention rates by 5% can increase profit up to 95%.
Defining Repeat Purchase
Repeat purchases are the purchases made by a present client. The existing clients are more familiar with the brand and business and are habitual of making a stop at the shop. Now here pops a question, when something has already been proven, why do we need to change it?
When it comes to e-commerce websites and applications, for instance, new customers visit the website and are expected to take more time in browsing, exploring products, and comparing rates whereas repeat customers know what they desire and purchase it directly. Moreover, the repeat customers put their complete trust in your business whereas new customers find it difficult to trust and Social Media Payments aren’t really fraud-proof in the eyes of many.
Discussing Customer Retention
Customer retention is one way of enhancing a business’s repeat customer rate and consuming additional worth from those customers. This act is associated with a client purchasing frequently, being completely contented and satisfied with customer service, and not decamping the company’s contenders.
To maintain decent customer retention, you must have to make sure your repeat customers stay loyal to you. Providing them with a top-level customer experience and valuing them with your services and products can be the key to customer retention.
In a nutshell, acquisition develops the groundwork for clients while on the other hand, your retention strategy is what you need to build customer relationships.
Strategies to Enhance Repeat Customers
According to the statistics of the Vice President of Growth at Facebook, if you have 20% to 30% of your customers frequently visiting and making purchases, your business is expected to do pretty well.
Now, how can you entice your customers to make second, third, fourth or even more purchases? Below, we are providing you with some effective and worthwhile strategies to elevate your average repeat purchase rate.
Continue Engaging With Post-Purchase Messages
A mistake that brands majorly make is stopping the targeted messages once the purchase is made. For an ever-lasting impression, you need to maintain personalized post-purchase engagement with your clients. This not only reflects a positive image in customers’ eyes but also keeps your firm preeminent whenever they need to repurchase anything.
For keeping the clients engaged with post-purchase messages, you can easily use an automation platform to send messages, e-mails, push notifications and a lot more.
Incentivizing Second Purchases
When a person makes a purchase, a discount code or coupons for further purchasing helps a lot in making a loyal customer. These discounts, promo codes, and vouchers can be a real game changer when it comes to customer retention. For those who are shopping for the first time, this technique can be an effective way of attracting them back for further purchases.
With the use of Artificial Intelligence, you can easily identify clients who have not made any purchase in a while and can easily bring them back by offering inducements. Using applicable offers can also increase repeat purchases while offering Smart Payment Solutions can double the turnovers.
If there is a bright side, there might be a dark too. Using these perks a little too often can cause you a loss too. Moreover, this can make an undesirable impact on brand insight. Before taking any incentives, make sure you hold a robust marketing strategy in your hands.
Increasing Share of Wallet
When you have repeat customers, you know what they want. Hence, they spend very little time exploring other products on the website. Through this behavior, you can easily get an idea of what they are interested in, but it does not tell us what they are looking for on other platforms. This is where you can make the most of Artificial Intelligence. Through Artificial Intelligence you can combine and examine first and third-party data to understand the client’s interest outside your company. Moreover, you can work on speedy Online Payment Processing Services to prevent any disturbance caused to the clients. By following these techniques, you can be more proactive in recommending what their desired products are.
Boosting Transactional Emails
The order updates and confirmation notifications are well appreciated by the customers. Brands can easily make the most of it by keeping their clients updated about the shipping status and other brand-related updates. The Social Selling Platforms can take advantage of these strategies and optimize their services as per the needs of the day.
Furthermore, you can also add relevant product recommendations for your repeat customers by using AI tools and purchasing records.
In the early stages, sustaining your business and devising a stellar strategy for growth takes top priority. Your business grows with your customer acquisition and satisfaction. Once you start securing your loyal customers, you can then easily transfer all your efforts in increasing repeat purchases. For this cause, a solid retention strategy, as well as Artificial Intelligence, will be of great use for companies.