So why do customers only buy once from us? A high percentage of one-off customers could indicate hidden issues within your business. To help you identify them, here are some reasons why customers don’t come back:
- Dissatisfaction with the product or service: If the customer was not satisfied with the product or service they received, they may not be inclined to make another purchase.
- Lack of trust: If the customer had a negative experience with the business, such as poor customer service or a delayed shipment, they may not trust the business enough to make another purchase.
- Lack of engagement: If the customer does not feel engaged with the business or the brand, they may not see a reason to make another purchase.
- Price: If the customer feels that the price of the product or service was too high, they may not be willing to make another purchase.
- Competition: If the customer found a similar product or service from a competitor at a better price or with better features, they may choose to purchase from the competitor instead.
- Unmet expectations: If the customer’s expectations were not met, they may not be willing to make another purchase. This could include expectations around delivery time, quality of the product, or level of customer service.
- Don’t understand your product well. If customers fail to understand your products and the instructions (due to products being too complicated), they will not be able to get the full value out of your products and therefore have a very low confidence and trust in your business.
By identifying the reasons why customers only purchase once from your business, you can take steps to address these issues and improve customer retention. Here are 7 Tips on how to engage inactive customers or those who only purchased once from your business:
- Send personalized emails: Send a personalized email to your inactive customers or one-time buyers, thanking them for their business and offering them a special promotion or discount to entice them to make another purchase.
- Provide helpful content: Create content that’s relevant to your customers’ needs, interests, and pain points. This could include blog posts, e-books, or videos that offer helpful tips and insights.
- Ask for feedback: Ask your customers for feedback about their experience with your brand, and use this feedback to make improvements or tailor your offerings to better suit their needs.
- Create a loyalty program: A loyalty program can encourage repeat purchases by offering rewards or discounts to customers who make multiple purchases or refer friends and family to your business.
- Host events: Host events, whether virtual or in-person, to build a community around your brand and give your customers a chance to connect with each other and with your team.
- Make it easy to re-order: Make it easy for your customers to re-order their favourite products by offering a subscription service or by sending reminders when it’s time to reorder.
- Provide exceptional customer service: Provide exceptional customer service to every customer, whether they’ve purchased from you once or multiple times. Respond to enquiries and complaints promptly, and go above and beyond to ensure that your customers feel valued and appreciated.
The cost of acquiring a new customer can be significantly higher than the cost of retaining an existing customer. According to a study by Invesp, acquiring a new customer can cost 5-25 times more than retaining an existing one. The study also found that increasing customer retention rates by just 5% can increase profits by 25-95%.
Here are some real-life statistics that illustrate the importance of customer retention for online businesses:
- Repeat customers spend more: According to Adobe, repeat customers account for just 8% of website visitors but generate 41% of online revenue.
- Retention leads to referrals: According to Nielsen, 92% of consumers trust referrals from people they know, and loyal customers are more likely to refer their friends and family to your business.
- Cost savings: According to Bain & Company, a 5% increase in customer retention can lead to a 25-95% increase in profits, as mentioned earlier. By retaining customers, businesses can save on the cost of acquiring new customers.
- Increased customer lifetime value: According to Harvard Business Review, increasing customer retention rates by 5% can increase customer lifetime value by 25-95%.
- Improved customer experience: By focusing on customer retention, businesses can improve the overall customer experience, leading to higher satisfaction and loyalty.
In summary, customer retention is important for online businesses because it can lead to increased revenue, referrals, cost savings, customer lifetime value, and improved customer experience. By investing in customer retention strategies, businesses can improve their bottom line and build a loyal customer base that will continue to support the business over time.