The aim of customer retention programs is to enable businesses to maintain as many customers as possible, mostly through loyalty initiatives and brand loyalty. It is important to note that customer retention starts with a customer’s first contact with an organization and continues throughout its entire lifetime of relation. It refers to the practices and acts performed by businesses and companies to minimize the amount of consumer complaints.
Companies which concentrate on customer retention also find it a more effective form of marketing because their experience with the business is easier for consumers who have already shown an interest in the products and are involved with the brand. Retain is in fact, a more competitive business model that is important for sustainable development.
Digital receipts are the best way to attract customers again and again, why?
In the last article, Our CRO explained how paper receipts can damage our health and to what extent, especially with regard to its harmful chemicals. check here
Here, I’m focusing on how retailers can make investments in digital receipts, and how can they make the best of them, to achieve one of its great benefits, CUSTOMER RETENTION!
No one can deny that the customer relationship is totally ended as soon he or she collects the paper receipts and leaves out the door, which pushes retailers to spend a large amount of money and effort on several marketing channels to reach him or her again for retention.
Save cost, Sell more
Did you know that today’s buyers are 50% more likely than new customers to try out new products and spend 31% more? Umm, Guess you also missed that it costs five times more to attract a new customer than keeping an existing one?
Nowadays, an organization’s first priority should be retaining consumers and establishing a successful relationship with old ones while reducing the cost for new users.
Need some numbers?
– Increasing customer retention by 5% will, according to studies by Bain & Company(), lead to a rise in profits of 25%-95% and the possibility of that a current customer becomes a repeat customer is at most 60% – 70% while the chance to turn a new customer lead is 5%–20%. In addition to the well-established fact that 44% of businesses concentrate more on customer acquisition compared to 18% focusing on retention.
– While over 89% of companies see customer engagement as a key factor in supporting customer loyalty and retention, 76% see customer lifetime value as a significant concept for their company; only 42% of companies have an accurate measure of customer lifetime value.
We should keep these numbers in mind when we are talking about customer retention. They prove that every company should direct its resources, money and even human power to retain the current customers who usually spend money on its products and services, and this doesn’t mean not marketing to new customers for sure.
The power of Digital Receipts
Okay, digital receipt works as a direct marketing channel between merchants and consumers. Digital receipts also are a magic tool for retailers to understand their customers behaviour and categorize them, in a way that facilitates delivering customized deals and offers.
Studies have stated that personalization can raise customer’s total expenditure up to 500 percent, while keeping an open line of communication, so they can get reviews and give them an early access to shopping, exclusive discounts and other advantages. It is also known that clients are recognizing fast distribution, easier and quick return -which was so much simpler with digital receipts and better shopping experience-, knowledge, experience and customization, among the key triggers for the repeated purchases.
Old is Gold
Your past customers are an enormous asset for your company, particularly in difficult times of success and accomplishing goals. More than ever, it is important to maintain good relationships with your past and current customers to keep them loyal for your company. You will find several ways to find out who your VIP clients are. It is critical to know which consumers are directly involved in the process, which customers are brand supporters and the most frequent references or which influencers are the most significant contributors to sales through posting their goods on blogs and social media.
If you classify these VIPs, you will proceed to have an association and also gather insight into how to translate more customers into those VIP groups through a customer segmentation marketing strategy for each subgroup. This technique, not to mention, would yield much better results than a single “free size” marketing approach.
The fact is this does not lie in a debate about consumer acquisition and customer retention. It is a matter of integrating both in a balanced manner, using the financial tools to their full potential, and by using social marketing, as on emails, facebook and other social platforms, bside using content-writing and digital receipts, you will see the results in many ways:
First, you will be able to keep in touch with your existing clients, send them notifications and reminders about all coming events, activities and seasonal tips, keep your professional look in the inboxes and even normal life, beside that you’ll be able to speak to customers you haven’t spoken to for years, and even send them the way to get more referrals.
Now, the discussion key is dealt with which is much easier: the customer acquisition or retention? As we saw, there are no right or wrong answers after analysing the above results. The two strategies, whether we like it or not, have a firm position in any company.
As a business owner or a key player in an organization, it is vital that each of them respect what they really are, create a healthy balance, and always aim to maximize customer interaction and provide both new and current customers with great experiences!
Now you have a magic tool that works as a direct marketing channel to reach your customers with 100% personalized offers for incredible levels of retention and loyalty, you have TOGO Digital Receipts.
If you are interested in being one of our early users, do not hesitate to drop us your email.
Infographic by- Invesp