Charlie Casey, founder and CEO of LoyaltyLion, discusses challenges facing retailers and why customer retention is so important.
The Ecommerce Allstars podcast helps ecommerce entrepreneurs accelarate growth through modern technology and innovative thinking. And in this episode the host, Branden Moskwa, and Charlie Casey disuss the importance of customer retention.
“Not every store needs a loyaty program. But every store needs a loyalty strategy.”
There are many reasons why it is a good business strategy to have a solid customer retention plan in place for your ecommerce business. To begin, acquiring new customers can cost up to seven times more than selling to existing ones. And that ratio is only going to keep getting bigger as ad costs continue to rise.
Keeping your customers coming back for more will lead to a greater return of investment. It will also help increase your customer lifetime value. What’s more, a happy customer leads to referrals, which means even more new customers for you.
Charlie gives some suggestions to keep customers coming back:
- talk to customers;
- reward them for purchasing;
- provide exceptional service;
- build an emotional connection;
- retain and grow.
For more insighful tips on customer rention, listen to the full podcast episode here.
