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 Customer Retention is Important during a Recession
Here are the reasons why eCommerce should optimise their customer retention strategy.
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 their existing customers happy and satisfied with the quality of the services and products delivered. Brands should create and implement a seamless buying experience and offer services that will keep their customers to come back, even during an economic crisis. As an eCommerce business, you should implement effective customer retention strategies to keep your business thriving and control your costs.
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 services and products, there are high chances that they will come back to purchase the same products from your shop. This is why ensuring that all your customers get what they want at the right time is really important. Repeat purchases are a great way to keep your business running even during an economic crisis.
Increased Customer Referral
Existing and happy customers also refer their close associates to your brand when they are happy with your services. 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. Referred customers are more likely to buy from your brand and less likely to leave.
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 businesses have 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?
DigitalGenius is a powerful CX platform that connects with your existing tools to engage with your customers during their buying process.
With DigitalGenius, you can offer customers a better, faster experience as the algorithm learns from historical data and conversations, ultimately reducing the need for human intervention as well as increasing revenue and reduce your costs.
Download our ‘Customer Retention for eCommerce’ best practice guide here.