The following six ways to boost customer retention are applicable for virtually any type of business — feel free to experiment with some or all of these tactics to see what your customers respond best to.
- Adjust your pricing for returning customers.
You can adjust your pricing in a way that makes it easy for current customers to return and conduct more business with you.
For example, maybe you offer customers discounts via email for their next purchases upon receive e-receipts for their most-recent orders. Or, free shipping and returns as well as additional price-related perks for frequent shoppers (Madewell does this well with their Madewell Insider program).
Lastly, you could offer a cost-effective subscription for your service (which is a tactic we’ll touch on below).
- Create a customer loyalty program.
Implementing a program to reward your most loyal customers is an easy way to build on existing relationships and offer regular incentives for them to return to your business.
For example, you might email your top 10% of customers a special offer each month. You can test which of your offers resonate with specific customers and then fine-tune your rewards over time. Rewards can range from a thank you note to free shipping to 10% off. You’ll eventually know which customer demographics, actions, and preferences predict a successful conversion after an offer.
You can also expand your loyalty program by adding a points system, which allows customers to earn points for actions like sharing your content on social media or referring a person within their network who makes a purchase.
The most important thing to remember when implementing a customer loyalty program is to keep it simple. Make it easy for customers to understand the steps they need to take to earn rewards as well as use apply rewards.