Do you run a Magento eCommerce store? Do you want to boost up your sales like your competitors do? Do you want to maximize your profit?
If your answer is yes, being an online store owner, you should be aware of the things like:
> The 80/20 rule
> The customer lifetime value
> Customer loyalty
> Retention program…. the list goes on…
Each and everything from where you think you can augment the profit should be taken care of!
Most of the eCommerce merchants focus on gaining new customers, but forget the importance of existing customers; and this is where they commit a huge mistake.
If you are one of them, even you should know that ‘existing customers hold the key to huge profits’, so make sure to keep hold of them.
If you want to increase your business, you should shift your focus from ‘pulling new customers towards you’ to ‘enticing the existing customers to buy again from you’ and this is how you will never let go off them!
This will increase your sales and profit drastically!
It is not that, you have to stop trying to gain new customers, but remember ‘Cost to gain new customers is higher than the cost to retain the existing customers’.
So, let us come back to the profitable things we were talking about…
The 80/20 rule:
The rule states that 80 percent of outcome comes from 20 percent of input!
In eCommerce way, it can be said that 80 percent of revenue can be generated from 20 percent of customers.
Then, don’t you think you should find out who those 20 percent customers are?
You will find out that these 20 percent customers are from your existing customers and you must make sure to get them purchase from you again and again. The beauty of repeat customers buying from you lies in the cost to get them back to you, as it simply costs next to nothing!
Customer Lifetime Value:
The Customer Lifetime Value is the amount of time an average customer spends on our store out of the total time he is your customer. It is extremely essential to know the customer lifetime value (CLV), as it will help you to make better decisions about the budgeting, marketing cost and customer acquisition strategy.
The universal answer to the question ‘How to maximize profit?’ is that, ‘By boosting up sales with spending minimum cost onto it’.
How is that done?
By keeping hold on to the existing customers and making them, buy again from you, instead of spending money on attracting new customers…
How?
Here are some of the great tips to increase profit from existing customers…
1. Reward program: You must come up with an effective reward program to increase retention, as it will make your existing customers feel that you are thanking them for their loyalty. Treat them with such rewards, as they are your main profit source.
2. Online forum: An online forum will be nothing, but a customer socialization platform where people can talk about your products and people can get information from the discussion.
3. Coupon code: Attract them with special discounts and deals and send them coupon code, saying it is a special offer for the old and loyal customers. This will make them proud of being your loyal customers and they will keep buying from your store.
4. Marketing campaign: Research the history and find out the time where you get maximum sales and mark it as hot season. Then, you can define it as a hot or festive season and target a marketing campaign.
5. Combos: You can add small items to the products and make it a package. You can bundle the products which are usually bought together. Supply these packages at lower cost. This will attract them because of the discount and you will get to increase your AOV (Average Order Value) and ultimately maximize your profit.
6. Referral program: If you want to increase your conversion rate, referral program is one of the most effective ways of marketing.
7. Complimentary gifts: Let customers know that you provide the small bonuses in the form of complimentary gifts on reaching to a certain checkout price limit. This will make customers buy a little more to reach to that price every time they are shopping from your website.
8. Customer feedback: Make sure you take care of a positive as well as negative customer feedback. Accept the negative ones and let them know you care by apologizing, instead of fighting back.
9. Support team: Keep your support team ready to clear the doubts. Also, spare time to quickly respond to reviews and make them feel they are not ignored.
10. Automated emails: You can also send the automated marketing emails periodically to the customers and make them feel that you have not forgotten your old customers. Send personalized mails that promote your products. This is the best way to bring back your old customers who have not shown up since quote a lot of time. You can also add links to the relevant product pages in the marketing email, instead of redirecting them to the home page.
That is it! These ten tips are enough for getting the most out of your existing customers! These practices are enough to not lose them and make them buy from your store again and again. Good luck for the Magento store development and getting the best from your existing customers!
