Retention in dropshipping or e-commerce is your business’s ability to keep existing customers long-term. It’s very crucial as it cost less to retain an existing customer than to acquire a new one. Also, research has proven that 20% of customers produce 80% of sales. You can imagine how massive the gain would be if you increase your retention rate. Continue reading to know 7 tips to increase retention rate for your dropshipping/ e-commerce business.
Exceed Customers’ Expectations
These times, customer expectations are set at an all-time high. And the only way to retain them is to exceed or surpass their expectations. Therefore, carefully commit to what you can deliver to your customers. Don’t promise anything if you can’t accomplish it. Customers feel happy when they get more than what was expected. For instance, suppose your business policy states that a product will be dispatched in 5 working days, but it is shipped within 3 days. This means you have over-delivered what was promised. In this scenario, your customers will feel delighted, increasing the chance of repeat sales.
Offer Excellent Customer Service
96% of customers are ready to leave a brand for bad customer service. You surely don’t want to make such a mistake. Offering excellent customer service is another way to increase retention. Meanwhile, how do you ensure your customers stick to your brand? Start by proactively listening to your customers, clearing their doubts, and resolving any issue at the earliest. Interaction with your customers shouldn’t feel like robotic talk. Add human touch to the conversation. You can do this by assigning a separate team consisting of professional customer representatives. Ensure to train them in understanding the customer’s needs and offering personalized solutions.
Resolve Your Customers’ Queries Quickly
90% of customers rate an immediate response as very important when they have a customer service question. The speed of the response plays a huge role in determining the customers’ experience. And the quicker you are to resolving your customers’ issues, the more satisfied your customers will be. Implementing live chat software is one of the best ways you can use to address your customer complaints 24/7. By reducing wait times, you can improve customer experience, which will help you increase your retention rate.
Utilize Social Media
Above 58.4% of people use social media across the globe. That equates to more than half of the world. Many times, customers will probably not contact you by email or over the phone. Instead, they might use social media to reach out to your brand. They may view your social media profile, ask questions, and leave a review or comment. So, it becomes vital to engage your audience over different social media platforms. Responding will show customers that you care about them, which will ultimately improve their experience with your brand and increase your retention rate.
Look For Ongoing Relationship Opportunities
Seek opportunities to provide lasting value to your customers. For instance, if you sell mechanical equipment, offer a service program or a free annual check-up on all purchases. By doing that, you are turning a one-time transaction into an ongoing service-based relationship. This will help you increase your retention rate and ensure you remain a vendor of choice.
Design a Customer Loyalty Program
A customer loyalty program reward customers for their continuous support. It works on a simple principle. The more customers shop from your brand, the more rewards they get. Offering incentives to your loyal customers will make them feel valued and help you increase your retention rate. You can reward your customers by providing them with free brand merchandise, free shipping, discount coupons, gift vouchers, etc. You can likewise design various contests like giveaways to attract your customers. These types of programs will foster an emotional connection with customers and motivate them to purchase again from you.
If you have technical issues in your delivery system, try communicating them with your customers. Or else, customers may get annoyed while waiting for their products to arrive and move to your competitors. If you don’t provide complete information about a product, it may seem like you are hiding something. Therefore, try to offer comprehensive details about the product or services you provide to become a reliable seller in your customers’ eyes. Not only will you foster a culture of trust but also increase retention.
While it may take some effort, increasing customer retention is important for any dropshipping or e-commerce business that wants to thrive. An increase in retention rate signals satisfaction with your products and services and position you for growth. The tips discussed are virtually for any type of business. Utilizing them will build you a loyal and satisfied customer base that will sustain your business for many years to come.
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