Wednesday, 22 November 2017
Current customers on average spend 67% more than new customers. That means that a simple 5% improvement in customer retention rates will generate a 25 to 100% increase in revenue.
Not only that, but according to INC, current customers on average spend 67% more than new customers. That means that a simple 5% improvement in customer retention rates will generate a 25 to 100% increase in revenue.
Not to say that companies should entirely refocus their attention to existing customers, but one thing should not eliminate the other. Because in light of statistics like these, businesses should think about what they are doing to retain their customers, and this is where loyalty points and customer clubs proves their worth as effective and valuable upselling tools.
Take the international super brand Weber for example, who encourage all their Danish Weber grill customers to sign up for the customer club called “Weberklubben” (The Weber Club). It currently has more than 72,000 active members, which provides Weber with an extremely valuable foundation for driving loyalty and additional retention sales.
Without going into specific details about Weberklubben, here are three essential offerings that help retain and expand their customer club:
Question is, how can offerings like these increase your revenue? It is actually quite simple, because as customers interact with each other, discover new recipes or participate in cooking courses or challenges, they automatically start expanding their interaction with the brand. They simply become brand ambassadors and at the same and enable Weber to increase sales, by providing relevant and timely offers on product accessories and upgrades.
We have demonstrated how the key to running a profitable webshop is the ability to convert new customers and re-sell to existing ones. That makes email marketing an indispensable and powerful tool, but only if it has direct access to your customer data. Despite the obvious advantages, some companies are still missing out. Question is – what is holding them back?
Based on our long-term experience in ecommerce email marketing we know that one of the primary reasons are due to ecommerce and email marketing working independently as separate siloes, which generates a maze of unnecessary obstacles that require too much time and too many resources to overcome.
Our solution to the problem is called the Dynamicweb All-in-One Platform, which of course includes integrated email marketing and ecommerce. The benefit is that it enables you to eliminate the distance between your customer data, ecommerce and email marketing, so that you can focus on:
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Continue reading up on this series here:
Part 1- Stand alone or integrated?