The retail industry has changed dramatically since e-commerce and social media arrived to the scene. Brands and online stores have to change their focus and concentrate on building relationships with people in order to empower their brand and build lasting relationships that will result in long term revenue from loyal customers.
Statistics is clear on the fact that returning customers spend a lot more than one-time customers do. Think about it: If you get someone to buy a product from you, you’ve made one sale. If you get them to buy a product from you once a month, you’ve made 12 sales for the year, and who knows how many over the course of the customer’s lifetime. That makes investing time and resources into improving your customer relationships well worth it.
Here are some of the benefits of building customer relationships for your e-commerce business:
- Increased ROI and revenues
A Harvard Business Review article showed that increasing customer retention rates by 5% increases profits by an average of 25% to 95%. A separate study has also shown that over two-thirds of all companies receive better return on investment when they work to keep their previous customers than when they try to get new ones.
2. Improved social proof through more positive reviews and testimonials
The cornerstone of relationship marketing is keeping the customer happy. Happy customers mean great reviews, and those help you attract more customers. Positive reviews can have an even deeper impact on your business if you’re an online company worried about an Amazon seller rating or eBay feedback score.
3. More customer feedback
Customers who develop a relationship with you will share their opinions more often. After all, if they trust you, they will expect you to listen to them. This will motivate them to tell you about opportunities they see for improving your products or services.
This customer feedback can be invaluable. And if you act on it, you prove to customers that you really do listen. That can raise their opinions of you to even greater heights.
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This post was written by Nina