Technique 2 minutes, 18 second read Ricardas Montvila, Senior Director, Global Strategy, Mapp
In the current economic climate, there are arguments for retaining your existing customers as a priority rather than seeking new ones. Digital marketing is a proven way to grow revenue and increase customer engagement. The challenge, however, is picking the tactics that will provide the most uplift with the least amount of effort.
Retaining your existing high-value customers by increasing customer retention rates by five per cent can increase profits by 25% to 95%. The goal is to turn one- or two-time purchasers into loyal fans who will act as advocates for your brand.
Here are seven tips that can help you to turn one-time purchasers into true fans, using tactics taken from Mapp’s Digital Marketing Playbook, a list of 100 straight-forward and easy-to-implement digital marketing tactics that are proven to deliver results:
1. Email re-engagement
If it looks as though a customer has abandoned their purchasing process, send messages to them. In particular, you should do this where the customer’s activities have indicated considerable intent to complete a purchase that is of significant value to both the brand and the customer.
2. Abandoned basket
Send an automated email message or a sequence of messages to customers that started filling their basket but have not completed the checkout process. Recover lost sales by reminding customers about items left in their basket or cart.
3. Exit intent
When it looks like a prospective customer is about to leave the page without completing their desired goal, display an overlay/pop-up. This can be triggered either when the customer is moving the mouse to close the tab, or when AI is predicting a high likelihood of the session being abandoned.
4. Churn prevention
You should aim to re-engage customers that are very likely to churn, something that may be obvious because they have disengaged with your newsletter communications or are exhibiting a significant drop in repeat purchase rates. Churn prevention campaigns are a highly cost-effective way to retain customers that otherwise may stop engaging with you altogether. This will definitely help you to increase your customer retention and customer lifetime value.
5. Basket top-up
Want to increase your average basket size? Offer products that are frequently purchased together with the main item on the check-out page. Incentivize your customers that are about to check out to increase their basket size with a timely and personalized offer.
6. On-site personalization
Decease your website bounce rates by showing your customers something they're interested in. Use interaction context and customer profiles to personalize your banners and blocks of content. Personalize content based on interaction context, as well as the customer profile.
7. Improve rather than replace
Improve your digital marketing, rather than replacing your existing solution. Consider taking on an insight-led customer engagement platform that will ensure your digital marketing activities are fueled by insights rather than gut feeling.