How to Increase Retail Customer Lifetime Value
Acquiring a new customer can cost 7x more than retaining an existing customer. We’ve all heard this stat before. But how often do retailers prioritize the happiness of their current customers over new sales? Increasing customer lifetime value (LTV) ultimately comes down to growing brand loyalty to bring satisfied customers back to your site, time and time again. Here are a few ways to achieve this:
Reward loyalty. Highlight your brand’s biggest fans by sharing their content on social media, featuring their user-generated content on your site and product pages, and letting them know that they are seen and heard. Share positive reviews on your product pages by turning them into social media posts–this is a win-win; you can showcase your most loyal fans while also providing social proof to drive conversions back to your site.
Listen to your customers. Your customers are your most valuable source of feedback. If they’re unhappy with your site or products, you may need to make some changes. One easy way to earn more customer feedback is by implementing Q&A on your site. You’ll be able to communicate directly with your customers about product features, any concerns about products, and more. And if you use your customers’ feedback to guide your strategy and make changes, let them know that you’re listening and that their feedback is valued. Responding quickly and clearly to questions will also demonstrate that you care about your customers, boosting your brand loyalty.
Simplify your returns process. 92% of customers would buy from a retailer again if they experience an easy returns process. In today’s ‘try before you buy’ eCommerce environment, customers are demanding more opportunities to see and feel the items they’re purchasing, with the option of returning an item (for free) if it doesn’t meet their needs. We’ve put together a quick guide for boosting your returns process–start implementing these tips now to improve customer satisfaction and brand loyalty throughout the new year.
Grow your loyalty program. A robust loyalty program is crucial to increasing LTV. 69% of consumers who had a positive experience with a brand app would sign up for loyalty or rewards programs, and 71% of consumers who are members of loyalty programs say membership is a meaningful part of their relationships with brands. By offering points, rewards, discounts, or other perks through a loyalty program, retailers can offer an additional value to customers to keep them coming back.
Go above and beyond. Above all, remember that your relationship with your customers is just that–a relationship. It needs to be nurtured, and there should be an equal amount of give and take. Show your customers you care by going above and beyond for them. Don’t just solve their customer service issues–follow up with handwritten notes, interact with them on social media, highlight them on your website. Research shows consumers with an emotional connection to a brand have a 306% higher lifetime value, and these are all simple ways to cultivate that connection.
Repeat customers spend 300% more than new visitors to your store and can act as brand advocates to drive more conversions on your site–don’t overlook their value! Start catering to this key segment of your customer base and begin growing your online business.
Contact Virid to get a free site optimization report, and learn how your eCommerce site could be bringing in more conversions and increasing sales.
About the Author:
Rachel is the Marketing Specialist at Virid. She loves all things creative and develops the content strategy for Virid’s website and social media. When she’s not writing whitepapers or creating email campaigns, she enjoys scrapbooking, baking, and playing with her dog, Coco.
Virid is a team of eCommerce experts providing a comprehensive solution for growing retailers. Their unique offering includes enterprise-grade hosted eCommerce platform, marketAgility, and 24/7 monitoring, website development, and ongoing technical and strategic support from a results-oriented team. Check them out here: https://www.virid.com/.