Customer acquisition costs can be as much as 7 times higher than customer retention costs, so leveraging the customers you already have makes sound strategic sense, particularly if you need to generate more revenue to carry out the necessary advertising that will allow you to attract more customers and grow.
Not only is acquiring new customers expensive, but loyal customers have additional value over and above that of their lifetime sales value. Your loyal customers are the ones that are likely to write positive reviews and actively advocate for your brand, which is valuable word of mouth marketing that you’re not having to pay for.
With competition forever snapping at the heels of online retailers, it can be increasingly challenging to stand out as a brand and keep your business top of mind for your customers.
Infrequent communication with customers and low engagement levels make it all too easy for your brand to be forgotten, whilst lack of loyalty incentives can make price-cutting competitors appear more attractive.
To make the most of your existing customers, we outline below some powerful strategies to boost customer retention and loyalty, along with actionable tips on how to implement them effectively on your Shopify store.
1. Build a Rewarding Loyalty Programme
A loyalty programme can make a big difference by incentivising repeat purchases. Shopify offers several apps including Smile.io, Mention Me and Referral Candy, that integrate seamlessly with your shop, helping you set up and manage loyalty rewards systems.
Tips for using customer loyalty programmes
- Offer points for purchases. Award points for each purchase based on order value, which customers can redeem on future orders, this encourages them to return to your store and shop again.
- Incentivise social sharing. Reward customers who talk about their purchases on social media with exclusive discounts or extra points. This not only drives loyalty but also helps spread brand awareness.
- Introduce tiered memberships. Create multiple loyalty levels, such as regular and VIP. Each level can offer different, increasing rewards, motivating customers to aim for higher tiers and buy more frequently.
2. Leverage Personalisation with Targeted Emails
Effective email marketing is more than just sending generic promotions. By utilising tools like Klaviyo, customers can be segmented based on everything from the number of purchases made, the highest spenders and even those who haven’t purchased within a specified timeframe.
Segmented lists allow email campaigns to be personalised and as such are more relevant to the recipient, engaging or re-engaging customers based on their past shopping behaviour.
Tips for segmented email marketing
- A Welcome Series can make a great first impression. Send a warm, personalised welcome email which introduces your brand story and other information designed to engage. A second email in the series might introduce your social media channels and encourage shoppers to follow and engage with you there. Finally, a third welcome series email could provide a discount to encourage a second purchase.
- Product recommendations are made easy with apps like Klaviyo. Specific products can be recommended based on past purchases and this tailored approach can increase open and click-through rates as well as conversions.
- Re-engagement campaigns are there to entice back customers who have shopped previously, but haven’t made a recent order. An exclusive freebie or a “Come back, we miss you!” discount, could be enough to rekindle their interest and encourage them to make a repeat purchase.
3. Create Valuable Content to Build Connection
Building customer loyalty involves making your brand a valuable resource. Content marketing is a powerful way to connect with customers beyond the sale and position your brand as an expert in your niche.
Tips for creating valuable content
- Utilise your blog and use it to publish helpful content that answer common questions, address pain points and provide additional help and information about your products and services. From care and styling tips to technical guides, valuable content is always informative and helpful, and it packs a real punch in terms of SEO too.
- Engage customers with short, informative videos. Short form content is particularly well received on platforms like TikTok and are a great way to not only grab attention and keep your brand top of mind, but they offer a great way to shout about anything new or spread awareness of current sales and offers. Engaging content can quickly and easy showcase how your products are made, offer a peek behind-the-scenes, or explain how customers can get the most out of their purchases.
- Send regular newsletters filled with helpful and informative content, product updates, company news, helpful blogs and guides and exclusive offers.
4. Utilise Social Media for Continuous Engagement
Social media platforms like TikTok and Instagram are ideal for maintaining customer relationships and ensuring your brand stays top of mind. Timing and frequency are critical components, so it’s crucial you remember to be consistent in your social media activity and ensure it is frequent too.
Striking the right balance for your particular audience and appeasing the algorithm can make for a tricky balancing act, but with close monitoring you’ll learn what works, achieving optimal balance.
Tips for engaging via social media
- Share photos and videos of customers using your products (with their permission, of course!). Monitor for brand mentions which is easily done via a manual hashtag search if you’re not already using something more sophisticated. Positive posts can easily be shared to things like your Instagram Stories, aiding social proof and building a sense of community and belonging.
- Actively encourage customers to post unboxing videos, give them a consistent hashtag to use and ask them to share their experience. You could even run an ongoing giveaway where every month a random unboxing video is selected to receive a prize.
- Organise giveaways or contests that your social media followers can participate in by engaging with your brand by leaving a comment, answering questions, sharing posts, or tagging friends. Giveaways are a great way to expand your reach beyond your current customer / follower base.
- Too many businesses ‘post and ghost’. Make sure you reply to comments, messages, and mentions! By engaging consistently, you show customers that your brand is approachable and values customer input.
Find more tips on generating social media engagement here.
5. Collect Customer Feedback
A customer who feels heard is far more likely to remain loyal to your brand and just one look at the comments section of any viral post on social media, proves that people love any excuse to share their opinions.
Consider asking questions, either informally via organic social media posts or more formally through surveys and importantly, act on that feedback where possible.
Tips for collecting customer feedback
- Send post-purchase surveys or invite customers to leave reviews. This feedback provides insights that can shape your product offerings and customer experience.
- Implement changes based on feedback. When customers see that their opinions lead to tangible changes, it fosters trust and loyalty.
- Thank customers for feedback. Whether positive or constructive, thank your customers for their feedback. Depending on the platform you use, you might even be able to offer a small discount as an appreciation gesture, which also encourages a return visit.
Whatever you choose to do, customer loyalty is all about perceived value, and exceeding the expectations of customers is your best route to achieving this. That means striving to deliver the best possible experience across all touch points, and going above and beyond what’s expected, wherever possible.