It generally costs six times more to win a new customer than it does to get an existing customer to purchase again. Like all general "rules", this assumes certain things - such as the customer hasn't been so put off by their experience they never want to do business with you again.
Strategies to get them to return include:
Classifying customers. Tiers allow you to develop appropriate marketing for each group, rather than a blanket approach for all. A common example is:
- "A" best & most desired - want to work with
- "B" potential to become "A"
- "C" is not ideal
- "D" ones you'd rather not work with again
Beyond just A-D classifications, you could incorporate additional variables for segmentation. This could include purchase frequency, average order value, and engagement levels. Utilise data analytics to identify trends and adjust marketing efforts accordingly.
Tailored communications for each tier can help resonate more with customers, making them feel valued. For example, exclusive offers can be given to 'A' customers while 'B' customers may receive 'welcome back' discounts.
Asking them to return. As simple as it sounds - if you've already delighted them. Personalised emails or messages inviting customers back can be effective. Highlighting what they might have missed or new offerings can pique their interest. Consider providing special discounts or loyalty points to entice past customers to revisit. Loyalty programs can be a significant motivator.
Providing awesome service. Again this sounds simple - but it means consistently providing service that goes above and beyond the norm. If you have a team, that means ensuring everyone is committed to and trained for awesome service. Regular training sessions focusing on customer service excellence can empower your team. Role-playing scenarios and customer service workshops can improve their skills. Foster an environment where employees feel comfortable sharing customer feedback. This can enhance service strategies and address any recurring issues promptly.
Nurturing customers. Think of this as a similar to a marriage. It requires effort, attention and communication - real rather than pre-packaged. The more customers you have the harder this is. I pay no attention to most such messages from my power or phone company. They don't know me at all (except as a customer). You could develop an annual communication calendar, send regular mailings, establish a loyalty programme and make follow-up calls to ensure 100% satisfaction. Create communication that feels personal and relevant. Use first names, acknowledge past purchases, and suggest related products or services. Host events (in-person or virtual), webinars, or workshops that align with your customer's interests. Keeping customers engaged can deepen the relationship over time.
Using customer comments. After a purchase, this can ensure satisfaction and avoid post-purchase dissonance. You can also use random phone calls, satisfaction surveys, web-based feedback and customer advisory boards. Visualize the customer journey to identify key touchpoints for engagement. This will help in tailoring messaging and interactions that are timely and relevant. Regularly analyse customer data to spot trends in behaviour and preferences. Use this data to refine strategies continuously. Leverage tools like Net Promoter Score (NPS) surveys to gauge customer satisfaction and identify areas of improvement. Use positive customer testimonials in your marketing materials. This not only fosters trust with new customers but reinforces loyalty for existing ones.
As with other challenges, the key is always to break the process into manageable steps systematically.