Successful online sales plans all have an element of online customer retention as a way to show existing customers that they are appreciated and valued.
As explained on this infographic by Go-Gulf.com, many companies place a large focus on customer acquisition and tend to neglect their current customers, an error which can negatively impact sales and company reputation greatly. While less than 10% of online visitors are repeat customers, they are responsible for almost 50% of all online revenue and are cost-effective when compared to the cost put towards efforts for acquiring new customers.
Losing customers results in loss of profit while increasing online customer retention by just 5% can lead to an increase of profits by 25% to 125%.
Key Themes Behind This Trend
- Online Customer Retention
- Focusing on creating online customer retention plans can lead to increased revenue for businesses.
- Cost-effective Strategies
- Cost-effective strategies such as retaining existing customers can be more profitable than constantly acquiring new ones.
- Data Analytics
- Using data analytics to identify areas of improvement in customer retention can lead to increased profitability.
Where This Applies
- E-commerce
- E-commerce companies can benefit from implementing online customer retention plans to increase profitability.
- Marketing
- Marketing companies can utilize cost-effective strategies such as retaining existing customers for their clients to increase profitability.
- Digital Analytics
- Digital analytics companies can offer services that help businesses identify areas of improvement in customer retention using data analytics.
