More time spent at home thanks to remote working, canceled events and activities, and other factors related to the pandemic have caused consumers to pay more attention to digital purchases. Creating a consistent experience across all channels is what will keep consumers’ attention and business, boosting both customer acquisition and retention efforts.
Due to changing consumer behaviors and the impact they have had on retailer marketing strategies, Total Retail, together with SMG, a leading experience management company, recently produced a new report, The Changing Consumer: Adapting Digital Marketing Strategies to Acquire and Retain the Customer of Today and Tomorrow. The full report explains how retailers need to adapt their marketing tactics to acquire and retain digital savvy and channel independent shoppers.
For starters, brand style, tone of content, and other elements of a retailer’s marketing strategy need to be consistent across all digital channels. Consumers must recognize the brand they hear about at first glance. Emails confirming orders, announcing a special promotion, announcing a new product launch, and more should share consistent branding styles and tones, creating a familiar feeling for the recipient. If a customer walks into a physical store, their experience and how they feel is likely to be the same no matter what task they’ve completed. It can also be done digitally. Social media, text messaging, affiliate marketing, etc. all need to be consistent to ensure that customers associate the messages they receive with your brand. As mentioned earlier, consumers are regulars. Therefore, if they know and are comfortable with your brand, they will think about it when they need something and come back for repeat purchases.
According to SMG data, 41% of consumers say they shop online every week and 79% at least once a month. Hence, it is clear that there are many opportunities to boost business online. Acquiring new customers has long been a priority for brands, of course, but it has become increasingly important in today’s hyper-competitive online shopping environment. With more and more people shopping and spending time online, retailers’ marketing plans must capitalize on such a captive audience. The increase in online traffic has led to more retailers and brands selling their products online. This abundance of choice available to consumers has made them less loyal to the brand. Your competitors are just a click away.
When it comes to brand loyalty, younger generations are more willing to try new brands and seek out new and improved product versions of what they are looking for. They are less likely to buy something just because it has a well-known name. Think about what, during their shopping experience, needs to happen to get them to convert. They pay attention to marketing campaigns around sustainable and ethical products, for example. This allows smaller or newer brands to grab the attention of consumers and win their market.
Successful customer loyalty also requires a strong customer experience. Just like in the store, if a person has a bad online experience, they won’t come back no matter what they are trying to accomplish. It’s quite simple from a qualitative point of view: the better the experience of your customer, the more likely you are to retain them. And that’s more cost effective than acquiring a new customer, especially given the current rising cost of acquiring customers online.
Quantitatively, outboundengine.com released the following statistics in April 2021:
- Acquiring a new customer can cost five times more than retaining an existing one.
- Increasing customer retention by 5% can increase profits by 25-95%.
- The success rate of selling to a new customer is 60-70%, while the success rate of selling to a new customer is 5-20%.
- A customer experience agency found that loyal customers are five times more likely to repurchase,
five times more likely to forgive, four times more likely to refer, and seven times more likely to try a new one
- American businesses lose $ 136.8 billion a year due to avoidable consumption changes.
- American Express found that 33% of customers would consider switching companies after just one case of poor customer service.
In addition to the above data that illustrates the value of customer retention, the cost of digital acquisition continues to rise with the popularity of online shopping. It costs more for paid search ads and social media, with efforts typically aimed at attracting new customers. As such, making an effort to retain existing customers will provide a better return on investment for retailers.
To learn more about how retailers should adapt their marketing and engagement strategies to optimize their customer acquisition and retention strategies for a digitally driven retail environment, download The Changing Consumer : Adapting Digital Marketing Strategies to Acquire and Retain Today and Tomorrow’s Customer today!