Businesses retain their customers by incorporating different activities to hike up the number of customers and increase the repetition rate. It also increases the profitability of each existing customer.
Customer retention strategies work both ways to provide and extract value from existing customers.
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Simply put, the acquisition creates your customer base while your retention strategy monitors how you establish good relationships with your customers and maximize revenue for each. But it is important for businesses to define the investment time and resources for the retention program. Sales quoting software accomplishes these tasks by automation and streamlining the products and pricing strategies.
When should businesses focus on retention strategies?
1. Initial stages
At the beginning of the business, attracting new customers is the only thing that matters to grow. At this point, your acquisition efforts should trump retention to a complete cessation. The strategies and tactics are important to extend your customer base.
2. Acquiring traction
After gaining customers, you get sporadic sales. This is the stage to incorporate retention elements for encouraging and compelling customers to buy more products from your business. Retention email campaigns might be the best way to begin the process of enticing past customers to engage in your business again.
3. Consistent
At this stage, you should start thinking about mixing in more retention elements with the acquisition efforts. Starting a referral and loyalty program and stepping into marketing automation is a great way to build credibility among your customers.
4. Established
Post execution of the above procedures, the businesses become established e-commerce stores. The retailers at this stage find it difficult to find space to grow continuously. The acquisition might lead you to a lot of multiple purchases at once but retention strategies compel customers to buy your products more often and build loyalty to your brand. This is the perfect time to put more retention efforts deliberately.
5. Stability
At this stage your store, the business successfully makes it past the initial hustles. After achieving success at the early stages, there are a lot of processes to implement and move to automation for the integrity of your brand. Now, businesses are more accountable for increasing the retention rate of customers.
Read about: Customer Retention Strategies for Your Retail Store
Customer retention metrics:
1. Repeat customer rate
Customers buying your products, again and again, is the backbone of customer retention. It measures the percentage of customer’s willingness to pay and make the purchase again from your brand. It is the best way to evaluate the statistics of how well your strategy is actually working. The higher metric shows more return rate of the customers to your store.
2. Purchasing frequency
Purchasing frequency shows the return rate of the customers to your business. Surveys say that repeated customers are accountable for 40% of the average revenue generation of the stores.
Along with the implementation of the sales-boosting strategies, quotation management software is a vital option to integrate and upgrade your business system. Vistaar helps in enabling and formulating best practices to optimize pricing and accelerate sales to increase profitability.
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