[ REPORT ] The importance of customer retention during an economic storm
During an economic crisis, customers become more cautious when planning to buy products or services from businesses. Customers are more concerned about getting value for their money. This is why they check the products or services from different companies to compare prices, value and product quality.
Why is customer retention important during a recession? Here are the reasons to increase customer retention for your business.
Acquiring New Customers is Costly
The Pareto Principle states that acquiring new customers is more expensive than retaining the existing ones. For this reason, businesses should focus on making the existing customer happy and satisfied with their services. Businesses should create a seamless buying experience and offer quality service that will keep customers coming back for more, even during an economic crisis. As an ecommerce business, you should implement effective customer retention strategies to keep your business thriving.
Customers Come for Repeat Purchases
When you offer seamless experiences to your customers, they will highly prefer you over your competitors. When customers are happy with your service, there are high chances of coming back for more. This is why ensuring that all your customers get what they want at the right time is important. Repeat purchases are a great way to keep your business running even during an economic crisis.
Increased Customer Referrals
Existing and happy customers also refer their close associates to your brand when they are happy with your service. This is one of the easiest ways to acquire new customers, even during an economic crisis, without spending a lot of money marketing your brand. Happy customers also leave positive reviews on your website and social media pages, motivating those looking for similar products or services to buy from you.
Increased Cash Flow
During a recession, many businesses struggle to achieve goals due to decreased sales. If you retain the existing customers, you will likely have sales during the economic crisis. This helps you grow your business amidst the hard times and challenges experienced by other businesses.
Implement Effective Marketing Strategies
An eCommerce business needs a well-thought-out marketing strategy to retain customers and keep selling even during an economic crisis. It is about establishing solid relationships where customers trust and are loyal to your brand. Time to look at all touch points that eCommerce has with their customers – offer amazing customer experience and extra services to differentiate from competitors and retain customers.
Want to learn how to increase customer retention?
Download ‘The Importance of Customer Retention for eCommerce During an Economic Storm’ here
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