Win More Repeat Retail Business And Make More Money

Based on a recent study by Endear, a CRM messaging and analytics platform, existing customers are 50% more likely than new customers to try new products and end up spending 31% more, on average. That’s why every retailer wants to capture customer attention and entice shoppers to become repeat customers. To do that, customers have to be reminded of your powerful assortment.

By following a few simple rules, retailers can increase their customer loyalty and retention. In the study, Endear lists several ways to reach and retain customers. They are:

1. Start a loyalty program: Programs like those offered by Macy’s and Nordstrom have several levels of loyalty to entice as many as customers as possible to participate. Retailers make the programs richer as customers spend more, with the highest receiving special attention from senior management.

2. Distribute future-use coupons: Kohl’s uses coupons to encourage shopping by people who return Amazon merchandise in their stores.

3. Have a social medial strategy: Whether it is TicTok or Facebook, choose the right media platform popular with your customer base and it will get a strong response.

4. Employ great customer service: It starts at the front doors with your service guard, continues with the sales associate extends to your post-visit follow up. That 360 degree service will ensure that the customer feels great.

5. Retain and use customer data: That information is important and can help you get to know your customers. You can then personalize your interactions – focus on their product favorites and acknowledge personal information like a birthday. Such personalization will encourage more repeat business. You must keep easily accessible records to recall the customer and know her preferences. Develop a VIP list.

6. Invited top customers to special events: Consider fashion shows or special events with the general manager – or even an exclusive luncheon where fashion ideas could be discussed. The idea is to provide unique and engaging experiences that make customers feel important.

7. Make returns and refunds a snap: Nordstrom and Amazon have made it easy to return anything.

lre follow that example. Mnded on e. rience easier, more personal and ultimatley,e about them, isn notAll of these actions help build stronger relationships with customers and show a commitment to make shopping experience easier, more personal and, ultimately, more rewarding. That is a win for both customers and retailers.

There are more facts..

RJMetrics says that the top 1% of customers spend five times more per order than the average customer. That is why management must know the highest average order value (AOV) customer. Many are interested in the latest fashion trends – depending on their age. They are also seasonal shoppers – whether they go swimming or skiing, go to a prom or a wedding. You must be aware of different preferences by customers and use that information whenever you interact with them.

By segmenting customers, you identify their unique needs. Then you can also encourage customers to communicate their wants or needs to add even more information. With that knowledge, you can already be ahead of your competition. For instance, luxury reseller Rebag used their CRM to engage in a 2-way dialog, which was a handy way of educating customers about what they do best, namely reselling. The two-way conversations through emails and text messages sell customers on the products and encourage reselling on the Rebag platform. That creates a second stream of revenue from existing customers.

Personalizing relationships with birthday cards or greeting a customer on the selling floor on their birthday – if you have the information in the computer – is a terrific personal touch. If possible, retailers should personalize all their promotions as well and marketers have reported 90% improvement in personal experiences.

Endear quotes a story that Target knew a young woman was pregnant before her father did. Their algorithm analyzed purchase history from their CRM data and provided them with information to be proactive. Similarly, Amazon’s A.I. helps them anticipate what the customer wants and thus what they should recommend to customers.

According to UPS, only 8% of shoppers return 26% or more of the merchandise they bought. 72% of the shoppers return 10% or less of the purchases. Brick and mortar customers prefer returning merchandise to the store, rather than shipping it back. The easy return at Nordstrom stores is a big plus for that retailer.

Naturally, omnichannel retailing that combines in-store, on-line, and social media helps the customer find her needs and wants in an easy way. Omnichannel retailing assures that customers can quickly identify their favorite store and then access the store in a quick an efficient way.

By anticipating a customer’s questions and wants, treating each customer uniquely and continually gathering data to personalize the relationship, retailers can foster long term loyalty and solid relationships.

POSTSCRIPT: Major retailers like Macy’s, Nordstrom, and Kohl’s have adopted many of the principles discussed here. Basically, they are suggestions to use available tools more efficiently. It will pay off since it will assure a long-term relationship. Customers will again have “their” store and “their” associate. Other retailers should follow that example