Commentary
4 ways to retain infrequent retail customers
As most business owners know, the cost of acquiring a new customer is much higher than retaining a current buyer. It's why companies put a lot of effort into retention marketing. But what happens when those current customers are buying less frequently?
March 22, 2017
By Paul Dobbins, national director of sales and account management, Fortegra
As most business owners know, the cost of acquiring a new customer is much higher than retaining a current buyer. It's why companies put a lot of effort into retention marketing. But what happens when those current customers are buying less frequently?
In the world of mobile devices, it could be that customers are seeing fewer reasons to transition with fewer updated features offered on 'new' models. Avoiding the hype, some consumers are deciding to hang on to their old device for longer. In fact, according toThe Wall Street Journal, the phone replacement cycle has increased from 24 to 26 months to 28 to 29 months over the last three years. And while that trend may seem unavoidable, there are ways brands can add value to keep shoppers coming back.
Value adds
While the latest device model may not have customers lining up, a cracked phone or tablet always gets them moving. With the advantage of additional long-term device protection, customers are far more likely to return to the retail carrier if and when something goes wrong. Safeguarding and prolonging the life of an investment, extended protection is just a smart move. Is it an added cost? Of course, but it’s a value add that'll save customers money in the long run.
Plus, warranty programs can also keep customers connected to the brand post-sale. Many salespeople and marketers believe their job is done once the register closes. But value-added items such as warranty solutions can keep customers coming back, not just for repairs, but because they’re compelled by loyalty to a brand that has shown it’s loyal to them.
Trade-in options
Smartphone trade-in programs can be used not only to acquire, but also to retain customers. While offering customers the option to trade in their current phone or tablet for a discount on the newest model is a method many retailers capitalize on, the industry has still been surprisingly slow to embrace the trend. There are issues to overcome, such as finding a trading partner and operational issues, but it can be a worthwhile effort when handled correctly.
Financing expensive items
Customers will always be looking to monitor their cash flow. By offering flexible purchase opportunities such as a line of credit or other financing options on more expensive items, retailers can improve sales and the consistency of repeat purchases. Financing options can help customers meet short-term needs while also providing a way to build credit history.
Great customer service
As in your personal life, actions create an impression. To that end, a positive experience at every touch point is critical to great customer service. And it's the small things — constantly driving customer-friendly programs and policies — that help bring customers back.
As simple as it sounds, putting customer service first pays dividends in the long run. Hey, even a handwritten note may just be the thing to secure a lifetime customer.
Retaining customers takes a genuine focus on doing what's best for them, exceeding their expectations, and showing how much they're valued. By proving to customers that they're more than just a sale, brands can secure ambassadors for a lifetime.
