Understanding the Importance of Customer Retention
Have you ever wondered why you keep going back to certain brands even though there are so many others selling the same things. The short answer is because they care. It’s a human thing.
Comes Across As and it’s called customer retention. Retailers - especially those with online stores - like making their new customers happy. But if they’re always focusing on acquiring new people, existing ones are bound to feel neglected and eventually switch sides. Existing buyers tend to spend more per purchase and cost five times less to keep around than acquire new ones.
They also make for the best word-of-mouth promotion you can evidently find for your business. So it’s sort of shocking that brands and businesses don’t put as much effort into retaining these people. There are tons of ways in which retailers and sellers can show returning buyers some love - special discounts, exclusive rewards, free gifts, or social media recognition. Customer loyalty is built on trust, satisfaction, and a desire to see more from a brand you’ve had a good experience with.
Creating positive experiences each time is what keeps buyers coming back for more - because they feel valued at every touchpoint. And there appears to be an emotional connection here too, which brings us back to the original question of why you prefer certain brands over others (and maybe even recommend them to your friends). It’s because of the feeling they give you when you’re shopping there. I think keeping old customers loyal doesn’t have to be difficult, but it does need to come from a genuine place.
People can tell when their favourite stores are putting in effort - even if it’s the smallest gesture or message. This could be anything from offering the right value or delivering memorable service each time.
Personalized Loyalty Programs
Isn’t it strange how one-size-fits-all programs can make people feel about as special as generic supermarket shampoo. I mean, if you’re going to reward someone for their loyalty, why do it with a badge and stale discount code that could belong to literally anyone. That’s like showing up to your birthday party and getting a slice of cake that says ‘Guest’ instead of your name.
I suppose the bare minimum is fine for some – but those who want to treat their customers like people with feelings and faces (and not account numbers) think much bigger. And personalisation seems quite obvious, doesn’t it.
No one wants to feel like part of a bulk order. A loyalty program that uses data and technology in an authentic way is actually harder than you think. What sounds simple enough often falls apart when it goes live because not enough thought has gone into it or there wasn’t enough human oversight for when things went wrong. But when done well, there’s nothing quite like it.
And even though it seems like there’s too many moving parts, all of those bits work together beautifully (almost seamlessly) when the system is set up right. I have personally enjoyed “Happy Birthday. ” automated emails (that I know are based on data I consented to sharing) which also allowed me to double my points earned on purchases made during the birthday week. So if you’re a company looking to reward loyal buyers – give them custom offers based on their purchasing history or preferences.
If they always buy skincare products between 20-25th of every month, send them a ‘special offer’ message just before the next purchase and see how much more invested they become in your brand. These little things matter. Over time, trust builds, loyalty strengthens, and your reputation grows in all the right ways.
Exclusive Discounts and Offers
Why do people love a good discount. I think it might be because shopping can be so much more enjoyable when you know you’re getting a bit of a bargain. Giving your returning buyers exclusive discounts can be a great way to show your appreciation for their continued support.
It seems like this is something that many people now expect - I know I do. It’s also important to remember that offering discounts and other promotions can help you stand out from the competition. There are so many options available to shoppers, and anything you can do to make your brand stand out is crucial.
Creating offers and discounts that make people feel truly valued means they’ll keep returning to experience that warm fuzzy feeling over and over again. Sending out targeted emails with unique discount codes is an easy way to bring people back to your shop or website.
Email subject lines like “We miss you. ” or “We want you back. ” will catch attention and make sure your email doesn’t go unopened.
Sort of. By offering exclusive deals, you’ll be able to show returning customers why they should continue shopping with you rather than seeking out new stores for their next purchase. Having access to special deals feels nice - I know whenever I receive something in my inbox letting me know that there’s something special just for me makes me feel good about being loyal to certain brands. It can also offer extra value for money, which is often an important factor when making purchasing decisions.
The way I see it, offering discounts is allegedly one of those things that many brands do because it works - everyone loves getting something for less, especially when it’s something they were going to buy anyway. And let’s be real: saving money never gets old.
Creating a VIP Experience
Does the phrase ‘exclusive perks’ make your ears perk up a bit. Because it should. If you're a retailer (or just like being treated as someone special), it's worth considering what motivates people to come back and buy again and again. Because sometimes, it’s more than discounts and cashbacks.
One way to reward repeat buyers is by making them feel valued - not just when they’re about to make a purchase, but even after they’ve hit the ‘buy now’ button. This could be in the form of exclusive access to new products, early sale announcements, or other benefits that make them feel like they’re part of a secret club. This isn’t to say you need to actually have one of those going on - but even creating an air of mystique and exclusivity could work well for your return customers.
This strategy is sort of mutually beneficial - while you reward your loyal customers with perks, you can also gather their feedback and maybe even use their advocacy for your brand as a way to encourage more sales. You don’t have to do this in any elaborate way - it could be as simple as sending out a survey asking about how their latest order went or creating referral links or codes unique to them so they can share it with people who trust their choices. Adding these personal touches helps create an almost intimate relationship between the brand and customer, where there is open communication from both sides.
One thing I do want to mention here is that none of this will matter unless your follow-up and delivery are on point (I don’t mean this literally). Basically, if you offer perks but then send them out days late or forget about them altogether, you risk turning a happy return buyer into someone who might not want to shop with you at all anymore - let alone become your unofficial advocate.
Engaging Customers Through Feedback
What are the best kinds of rewards for returning buyers. It would be a cop out to say ‘it depends’ but it does. You’re not going to know what’s most valuable to them if you don’t ask. And you can’t really engage with them until you’ve asked a few questions, can you.
It seems like the feedback loop in customer retention is supposedly probably the most underutilised tool in your arsenal. If you want to reward a returning buyer, you need to understand who they are, why they chose to buy from you again and how they feel about their experience so far. It seems like this will set the scene for what happens next and is an important step before offering them anything. Understanding customer behaviour comes from engaging with customers through feedback mechanisms like surveys or direct calls or even less direct methods like tracking cookies.
Your approach doesn’t matter as much as the fact that it’s being done at all and that your customers understand how this information will be used. Once you have some insight into how your customer feels about your business, you’ll know better if they’re ready for a reward or not. Sometimes a reward doesn’t make sense because there are unresolved issues or because your customer is not too happy with something, which makes them a churn risk.
But some other times, it makes perfect sense. They might be repeat buyers who have been positively engaging with you for a while now and are ready to be rewarded for their loyalty. This is when it’s important to have the right options available for them so that they feel valued by your business and continue coming back time after time.
Some common types of rewards include referral programs that reward both the returning buyer and new customers referred by them, online reviews (especially video reviews), loyalty programs where points can be redeemed against purchases on future orders as well as product exchange policies which allow customers to try new things without having financial risk associated with purchasing something they may not like or need.
Celebrating Milestones and Anniversaries
Who doesn't want to feel like they're being celebrated for something. A lot of people - that's who. But it seems like most customers these days want to be acknowledged for their loyalty and patronage, and that's especially true of those who love shopping with a specific brand or store.
Celebrating milestones and anniversaries means that you’re taking the time to remember something important about your customer - namely, how long you’ve known them. Having the opportunity to establish a long-term relationship with your customers can be a really exciting thing for any business, and celebrating this can be a big deal. Whether it’s been one year or ten, you’ve probably got buyers that have stuck by your side throughout. That’s not the kind of thing you should take lightly.
Sort of. Rather than keeping things strictly transactional, celebrating anniversaries and milestones is a way for you to communicate that there is value in being on this journey with you. Your business gets to reap the benefits of their patronage, but when you celebrate milestones, they feel like part of your business too. It’s not as uncommon as you might think for many people to express devotion to their favourite brands and businesses, so building on this feeling can really cement your relationship with buyers.
Some ideas could include celebrating their birthday with a special offer or even an exclusive one-time discount. If your brand has something unique about it that makes it stand out from competitors, then incorporating this into milestone celebrations can be effective too. This not only celebrates your buyer but also reminds them why they love being loyal to your brand.