Future of Retail: What Businesses Should Do For Customer Retention and Expansion
The past few years had been the duration of great upheaval for retail stores, with the advent of the internet, and most current mobile shopping converting the retail landscape for all time. Digitally develop markets such as The U.K. and The U.S. will see two-thirds of revenue coming from retailers with digital channels and by 2024, 53% of retail revenue will go to retailers that have a digital offering as part of their business model. With the rise of mobile app development, retailers find issues to get more customers as the online process makes shopping so easy, fast, and secure. So, it quite difficult for retailers to do their business more effectively.
The growing online trend impacts both retailers and E-tailers since dealers must embrace ecommerce business to support their growth, the role of solutions providers like BigCommerce and Shopify will grow further in the coming years. So, for retail, it is crucial to focus more on customer retention more than acquiring new ones.
Importance of Customer Retention in Retail Sector
There are 60–70% of revenue comes from the existing customers whereas only 5–20% of revenue comes from the new one, According to Marketing Metrics. So it’s clear that customer retention is more important than getting a new customer. If you maintain your existing customers, it will help you to sustain in the market and create the unique value in their mind and word of mouth is the best way to get new potential customers, and it’s done through the existing customers. It helps in,
· Increase conversion rate
· Increase in profit
· Low Cost
· Less Marketing
Strategies to boost customer retention
Increase customer loyalty program
There is a vast difference between new customers and returning customers. You have probably studied it for more than one time: returning customers to spend more time in your store than new customers. So you need to hold those loyal customers at any cost. You additionally need to turn the new customers into returning customers as well.
Your customers don’t need to fill out long forms anymore to be enlisted on your loyalty program. Easy tools let you implement rewards which can be not inappropriate to your customers and that are simpler to achieve.
Send Relevant Emails to customers
According to Shopify, black Friday cyber Monday shows that email gives the highest conversion rate at 4.29%. So sending mail-related the products they need, can engage the people and allow you to build long term relationship with your customers before and after their initial purchase. It helps your business to increase customer retention and make a high profit.
Backup Support
According to RightNow data, almost 90% of consumers will shop from your competitors after receiving poor customer service. In this era, customers have an overwhelming amount of choice. So, retailers have to provide the best customer services and assist them with the empowered decision by giving supportive information to make on their own choices. This will progressively turn into a key differentiator.
Backup support helps businesses to communicate with the customers to provide on-time support that creates a unique image in the customer’s mind and increase the customer retention ratio.
Wrapping Up
The future of retail is drawing near and if you want to stay ahead in the retail business, you must prepare for that future through taking count into your very own hands. If your future retail store provides the best services to your existing customers, it will help you to be in the market and acquire new potential customers with help of word of mouth and brand value. So, with the right approach and delightful customer services, the retailer can sustain in the market and slowly & gradually, expand their business.
If you want to know more about what will be the future retail trends and how it will impact on your retail business, get in touch with us.
