Customer acquisition is much more expensive than customer retention, as such, it is crucial for retailers to create loyal, repeat customers. Today’s connected consumers have more options than ever, so how do you earn customer loyalty?
Retailers can build strong, loyal customer relationships by earning trust and exceeding shopper expectations.
Value Earns Trust
Building trust can be challenging, and if you lose it, it’s very difficult to get back. The best way to gain the trust of your customers is by delivering real value – this requires personalized content delivered in context. One data point is not enough to personalize the customer’s shopping journey, Brendan Witcher of Forrester calls this ‘minority matching’ and it will just alienate your customers. 74% of shoppers get frustrated when they receive content that doesn’t align with their interests.
When retailers collect insights from their loyalty-based data to tailor pricing, promotions, and marketing to customer preferences, sales consistently increase 1% to 4% and profits increase 4% to 7%. Use past shopping behavior, customer preferences and location data to ensure you’re sending the right content, at the right time, in the right context – this type of valuable interaction will build trust and loyalty.
‘Wow’ Your Customers
If you ‘wow’ a customer, you will keep them coming back. In order to exceed customer expectations, retailers need to create rich shopping experiences that keep customers engaged with the brand. Apps offer a platform to create a rich shopping experience both in-app and in- store as they take advantage of all the capabilities of a mobile device. The possibilities are endless and retailers have just begun to scratch the surface of what can be done to enrich the buying journey with apps.
Beacons, for example, can pinpoint exactly where a customer is standing in your store. Imagine what you could do with that type of information – send them coupon for the product they’re looking at, provide an informational video on what they’re perusing, or highlight customer reviews from other satisfied shoppers. Despite the possibilities, only 3% of retailers are taking advantage of beacons.
Customers are hungry for richer shopping experiences and those retailers who take advantage of the technology available to ‘wow’ shoppers will be rewarded with brand loyalty.
We know that building customer loyalty isn’t the only challenge you face as a retailer, download our guide to solving your top 4 most pressing retail challenges.