Every year thousands of retail companies thrive or die based on their ability to retain customers. Data from Semrush shows that the probability of selling to an existing customer is 60–70%, while for new customers it’s only between 5-20%. However, customer retention often takes a back seat to its flashier cousin — customer acquisition.
It begs the question: in a world where customer retention has such high potential business value, why do companies devote so much time, money, and effort toward getting customers but so little on keeping them?
To increase brand loyalty, drive referrals, and encourage repeat purchases, you must go beyond providing a stellar shopping experience from start to finish — e-commerce companies must find ways to add value through the post-purchase process long after the initial sale is complete.
Here are five simple ways companies can own and improve their post-purchase process to create a more memorable experience, nurture brand loyalty, and increase customer retention.
Many companies use discounts or freebies to generate sales, but these gifts are even more impactful when used as part of the post-purchase experience.
Gifts after purchase are a great way to say thank you to customers and can go a long way toward increasing brand loyalty while improving rebuy rates. In fact, a study from Harris Interactive found that almost 90% of customers reported they were more likely to repurchase from the same company after receiving a free gift.
Not only do post-purchase gifts put a smile on your customers' faces, but they're also an excellent way to showcase your other products and services to someone who's already bought into your brand.
Here are a few types of freebies that can delight customers and enhance your post-purchase experience:
Package physical gifts, such as a product sample or branded item, in your customer's original order, and experiment with delivering non-tangible offers like discount codes or free trials either in-order or through email. See which method resonates most with your customers, and stick with it!
Online communities help connect customers with your brand long after their initial purchase.
Customers can geek out over their favorite product, share photos, connect with people who have that same interest, and get recommendations for other items they may love. That initial excitement is compounded, and the connection to your brand begins to strengthen.
That's the power an online community provides — a place where customers can engage on a more personal level with your brand and other customers.
Replica Surfaces does a great job of this. They're a smaller company that sells hyper-realistic background surfaces for product photography. While their product is excellent, the real value comes through their online community. Anyone who places an order is immediately invited to join Replica Surfaces' VIP Facebook group, a closed group that's exclusive to customers.
Members can share photos of their surfaces in action, get feedback on ways to improve their photography, and give recommendations on how to pair different surfaces or use them creatively to achieve stunning photographs.
Replica Surfaces leverages its online community to:
It's a symbiotic relationship that demonstrates that online communities — when done right — provide a powerful platform for engaging customers post-purchase, promoting new products, and generating sales through word-of-mouth marketing.
Loyalty or reward programs have long been a tried-and-true method for increasing customer retention. But in a world where everyone is offering some form of loyalty rewards, e-commerce brands face a difficult challenge: standing out from the crowd.
Data from Colloquy's Loyalty Census shows that the average number of loyalty program memberships per U.S. household is a staggering 29. That’s a lot of rewards programs to keep track of, and if you want yours to stand out from the other 28 then you need to create something that’s valuable, memorable, and worth customers’ time.
So how can you find ways to cut through the noise and create a rewards program customers want to be part of?
With a stellar rewards program that demonstrates your brand's value and keeps customers engaged, you'll be primed to own the post-purchase experience and nurture loyal customers for years to come.
Even if you think you've perfected your customer experience, there's always room for improvement.
Customer feedback is essential in helping e-commerce companies identify roadblocks to success — whether it's an issue with your website, a breakdown in your shipping process, or a problem with your product. Regularly soliciting feedback from your customers and taking steps to act on that feedback is one of the best ways you can show customers that your brand cares.
The best time to gather this information? During your post-purchase process. Consider the following when soliciting customer feedback:
Once you know what's not working, you can improve your internal processes for a better customer experience.
Product protection plans help eliminate anxiety pre-purchase and post-purchase by ensuring functionality long term.
With a protection plan in place, your customers can rest assured knowing that the $5,000 sectional they just purchased is protected from accidental stains and damage for years down the line — not just for the week after it was purchased.
Here are some things to evaluate when selecting a product protection plan vendor:
By providing peace of mind through modern product protection plans, companies can establish trust with customers after they've made a purchase — building loyalty and increasing the likelihood of retention.
An exceptional post-purchase experience is a gift that keeps on giving. By creating a process that adds value and establishes trust, you're not only satisfying current customers — you're building relationships that will lead to future ROI.
Don't make the mistake of damaging those valuable relationships by not offering product coverage for your customers. Talk to our team today about how Extend's modern product protection plans can help build customer trust, drive higher conversion rates, and enhance your post-purchase experience.