Why Your Business Should Focus on Retaining the Customers

Attracting customers is the lifeblood of any company’s success. Big budgets and heavy marketing artillery are allocated towards this goal. A lot of time is dedicated to figuring out acquisition tactics.

However, what must not be overlooked is that cultivating customer loyalty also has a profound impact on the bottom line. In fact, it is easily one of the best strategies to accelerate growth and make strides towards the forefront of the industry. After all, long-term customers add much more value to your business than single-deal ones.

Numbers game

If you possess appropriate resources, enticing someone to make a one-time purchase is not too hard. On the other hand, prompting people to stay with you and inspire loyalty in them is an entirely different ballgame. It takes a lot of time and requires you to invest a great deal of work. The rewards that lie down the road are too big and opulent to be missed or overlooked.

The math may seem odd to some, but it has been proven: Improving your retention rates by just 5% can increase the profits by 25-95%. Thus, the return on investment (ROI) is impressive, and it is not hard to understand why. Loyal customers feel comfortable making frequent purchases, and they tend to become larger and larger as the time rolls by.

This allows you to tap into the stream of repeat purchases and elevate your organization. This kind of revenue base is more profitable, but also far more predictable.

Another great thing about retention is that the costs are much lower than the cost of acquiring a customer. Believe it or not, on average, acquisition costs around 30 times more. Taking into account these findings, we become aware that it makes so much financial sense to focus on building meaningful relationships with your customers.

Sowing the seeds of loyalty

There are many things you can do to nurture customer loyalty and turn people into long-haul partners and brand ambassadors. It all starts with thorough market research, the bedrock of getting to know consumer wants and needs. Next, you need to use gathered insights to put a solid after-sales service strategy in place.

It can encompass everything from sending birthday gifts and emails to offering coupons and discounts. So, do a follow-up whenever someone expresses interest or purchases your product and service. Make sure to ramp up your remarketing efforts. Launch creative loyalty programs that add value to the life of the customers. Never make promises you are not able to keep.

Furthermore, take your customer service to the next level. Embrace a holistic approach and realize that everyone in your company is responsible for putting the best face forward. Offer consistent experience across all touch points and make certain that all departments are working hand in hand towards maintaining good public relations. Train your staff accordingly and formulate clear expectations and policies.

Note that apart from the optimal buying experience, marketing has a big role to play. If you lack the expertise, don’t hesitate to hire professionals to handle some aspects of your marketing and branding. There is an innovative brand agency from Melbourne helping various businesses take off and boost their visibility. But, regardless of where you are, it should be possible to acquire professional aid locally or by outsourcing online.

Reaping the benefits

A shift of focus towards retention leads to more optimal resource allocation. You are in a position to keep the spending in check and achieve significant savings in the long-term. Of course, you can then use the money where it’s needed the most and make a real difference. In addition, having devoted brand ambassadors to back you has an incredible effect on your image and brand.

Namely, word-of-mouth promotion is something that allows you to stand out and attract new customers without employing expensive marketing tools. Studies have confirmed that modern consumers highly trust customer reviews and testimonials. Therefore, maintaining long-term relations is one of the best demonstrations that you care about your customers and provide a great customer service experience. Others will start wondering what it is that you have in store.

The list of benefits goes on, but by now, you should be convinced about the importance of customer retention. However, nobody is saying you should forsake customer acquisition strategies. On the contrary, keep it one of the staple elements of your success formula.

That being said, in this day and age, keeping your fingers on the pulse of your existing customer base is not optional: It’s the name of the business game.

A force to be reckoned with

Attracting new customers is important, but retaining them is something else. It’s a potent strategy that calls for a long-term perspective and commitment. You need to lay the foundations of lasting trust and loyalty.

Look beyond immediate avail and profit. There is a lot of evidence that shows that repeat purchases coming from loyal customers can account for the lion’s share of the revenue and serve as a driving force behind the business growth and expansion.

So, make sticking to your offerings worth it and rewarding for customers. Set yourself apart from the competition and lure people out of their camp. The good word travels fast, far, and wide, and brand awareness follows in its wake.

Dan Radak is a marketing professional with eleven years of experience. He is currently working with some companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies. He is also a coauthor on several technology websites and a regular contributor to Technivorz.

Five Ways to Convert Traffic into Customers

It’s exciting when you see your traffic grow because it means that your marketing efforts are working–but huge traffic numbers alone will not make you money.

If you want your site to become profitable, your visitors need to convert into customers.

Thankfully, there are many ways that can help you achieve this. Follow our tips below for guiding your site visitors to becoming loyal, paying customers.

Tips for Converting Traffic into Paying Customers

1. Install Live Chat

Live chat is a great tool for turning visitors into customers because it lets you answer their queries before they decide to purchase. It also allows you to intervene should a customer abandon a purchase. Many companies have seen an increase in conversions thanks to live chat.

One of them is Sam’s Furniture who generated $50k in sales revenue by implementing proactive chat. Every time someone stays on their website long enough, a live chat widget appears offering help to the customer.

It’s similar to a business owner approaching a confused-looking customer in a store, except it’s easy and requires a very little budget.

You can set up your live chat software so that it initiates a conversation with the customer whenever a specific action that indicates a purchase problem is triggered.

2. Make your First Offer Easy to Get

If you want your visitors to convert faster, you need to make the first offer easy to get. People are more likely to jump in when there is very little risk for them.

A 2016 study by Synchrony Financial in regards to major purchases, has also shown that 82% of customers wait for the best deal before they convert.

By providing a great offer, in the beginning, you make it easy for your visitor to pull the trigger on that purchase. When they already know enough about your product/services, they’re more likely to become paying customers.

Here are some examples of how to familiarize visitors with your brand:

a. Offer a free sample of your product

We know it sounds counterintuitive to your business, but it works. It’s a small investment compared to the profits you will get from those who you’ve turned into customers!

b. Give discounts

Discounts are another great way to get your visitors to buy. People love getting great deals. There’s little risk for them in the beginning. Once you get them buying, they’ll be more likely to make bigger purchases further down the line.

c. Provide a free trial

If your business is based on a subscription model, you can provide a free trial of your service for a limited time. Not only does it show confidence in your product but it also allows customers to answer questions that may be preventing them from buying.

Here’s an example from Autogrammer.

Aside from teaching website visitors how to post on Instagram, they also provide a free 7-day trial of their service.

Once the customer is done with the trial, whether they decide to pay for the services or not, ask them for feedback. This allows you to improve your services, so it doesn’t hurt your future conversions.

A note about credit cards and cancellations:

Requiring credit card information during the free trial signup can potentially drive customers away. Nobody likes to spend time on the phone disputing a credit card charge a month later, once the trial is over.

If you want your customers to convert, don’t ask for their credit card information until later. A study suggests that people are more likely to convert when no credit card information is required during sign up. Consider implementing this on your site and see if it works for you. Everyone is different, so it’s always good to test it out first.

3. Showcase your Product

An issue with buying online is that people can’t pick up a product and look at it. This makes the buying process more complex with people searching for reviews and testimonials to help them make a purchase decision. Thankfully, there are things you can do to make it easy for your visitor to decide.

a. Provide high-quality images

Product images should be high-quality, allowing the customer to zoom in and out while inspecting the product. According to InLineVision, great product images can help increase your conversions by 30%!

b. Create a product demo

If you want to take it a step further, you can create videos that show your product from every angle and explains its best features. In your product demo, don’t just talk about the product. Show them how to use it! This gives customers a good idea of how your product can benefit them.

4. Provide Social Proof

People like to go where the crowd is. This is why social proof is such a popular marketing strategy. If you can leverage that, you can push more people into buying from you. Here are just some of the ways you can provide social proof.

a. Testimonials

If you can get a testimonial from an influential person on the internet, great! But any testimonial from a customer who’s genuinely happy with your product will also do.

b. Reviews

Everyone looks at reviews before they make a purchase. Make it easy for your visitor to make a purchase decision by displaying reviews and ratings from customers.

c. Logos

Feature logos of companies/clients you’ve worked with in the past. Bonus points if you can get prominent brand names in there.

d. Follower Counts

If you have a sizeable number of followers/subscribers, don’t miss the opportunity to tell your visitors about it. When they see just how many people think your product is awesome, they’ll be more likely to buy.

5. Implement Scarcity

People place higher value on things that seem high in demand; some call it FOMO (fear of missing out). We call it an opportunity for you to convert visitors into potential customers! By marketing your products as “high in demand,” people are more likely to buy from you for fear that it may become unavailable. Be careful in implementing this. Scarcity is great for prompting action, but if people find out you’re faking it, they’ll end up abandoning your site.

In Conclusion

There are a variety of ways you can convert your website visitors into customers; it just requires some creative thinking. Your website functions as your best and most effective marketing tool. Use it properly by implementing the above tips, and you will be on your way to experiencing increased conversions and higher profits.

What strategies have you implemented to turn your site visitors into customers? Let us know in the comments below!

Denise Amara is the Senior Marketing Director of, the ultimate social media scheduler and planner for Instagram, Twitter, and Facebook. Denise has over 15 years experience working in marketing with the last 10 focused in the digital realm. She is passionate about helping clients make social media management more efficient and effortless.