Repeat Customers
There’s an old saying that it’s five times more expensive to acquire new customers vs. keeping your current base. Companies spend a lot of money on acquiring new clients, but often don’t measure the lifetime value of these acquired customers. However, according to Forrester Research, 47% of web retailers showed an increase in repeat customers in 2010, and repeat customers account for 37% of all mid-market retailers’ revenue stream.
So it’s no surprise that many retailers have turned to building sites with better branding and user experience to boost repeat purchases.
Magento is a platform that can help support these retention efforts with its current functionality. The platform has the ability to recognize specific customer groups and automatically provide offers and personalized recommendations to them, increasing conversion and AOV. You can also create customized landing pages that only these specific customer groups would have access to, adding incentive to return. Several clients are also experimenting with private sales and reward points for their regulars to come back and help drive margins. And all these efforts will help you lower marketing costs since they’re baked right into your Magento platform.
As a retailer, sure, you’re going to get caught up in acquiring new customers at the expense of the loyal ones. Just remember Magento offers fully customizable ways for you to hold onto the folks you’ve already got.
