| Introduction | | | | you have already everything needed to complete |
| It is not a secret that it is much harder and more | | | | an order on file. Even if you pre-fill every page in |
| expensive to acquire new customers than it is to | | | | the process, it does require several clicks too |
| retain existing ones. Retaining customers is not a | | | | much to get the customer to "place" an order. |
| passive thing and many businesses fail to do it | | | | Show one page with the existing and default data |
| right and sometimes to do it at all. To prevent | | | | from previous purchases or defaults the |
| decline of their business, companies often increase | | | | customer specified and have links from there to |
| their efforts and spending by expanding existing | | | | pages to change individual parts like shipping |
| customer acquisition strategies. Such increase is | | | | address, billing information, payment method, gift |
| often connected with increased cost for the | | | | options etc. Shipping method and coupons should |
| additional volume and also tends to become less | | | | be editable right from that screen. This will allow |
| and less effective the more you do it, creating a | | | | the customer to complete an order in a single |
| vicious cycle that can lead to the failure of the | | | | step, if the defaults can be used for the current |
| business when expenses reach a point that profits | | | | order. |
| get reduced to nothing and then turn into losses | | | | 2c. Save for Later/Wish Lists/Gift and Wedding |
| that will take away from the businesses | | | | Registries |
| substance and equity until it is too late to salvage | | | | People don't always buy immediately something, |
| what is left and change course. | | | | even if they are interested in the product. Make it |
| Spending time and money on retaining existing | | | | easy for them to save it and come back at a |
| customers and leverage the relationship that was | | | | later time to complete the purchase. Let people |
| build over time to increase their spending with you | | | | create wish lists and gift registries like wedding |
| instead of somebody else is much more | | | | registries if your products or services can be sold |
| profitable. | | | | as gift. You do not only get more business from |
| Doing a good job with that also impacts indirectly | | | | the customer, but also have the potential to |
| your customer acquisition efforts in a positive | | | | acquire new customers. Why is that? If you allow |
| way, because happy long term customers of | | | | customers to create those lists, also provide the |
| yours are more likely to recommend you to their | | | | means that the customer can notify other people |
| friends and colleagues than customers who have | | | | about this list to purchase items for him from |
| no relationship with you and only moderate or not | | | | that list. Those people might be already a |
| happy with you at all. | | | | customer of yours, but some of them might not. |
| 1. Customer Service | | | | 3. Offers |
| It is only possible to retain a customer who is a | | | | If you only have promotions that are available to |
| happy customer or a customer who has no other | | | | new customers and never reward existing |
| choice (which is one of the reasons why a | | | | customers for their loyalty, chances are that you |
| monopoly is a bad thing for everybody, but the | | | | will upset them or they start to create multiple |
| company who has it). Forget about the | | | | accounts in order to get rewards they would not |
| customers that are impossible to make happy. | | | | get otherwise. |
| They are in the minority and their number is | | | | Don't let that happen, because you either lose |
| insignificant. If you think that it is in the double digit | | | | customers or litter your customer database with |
| percentage range, have a closer look at your | | | | numerous duplicate profiles. This will also not help |
| marketing and advertising campaigns and what | | | | to build good customer profiles and decrease |
| sales is doing. Customer expectations that are too | | | | customer loyalty. They will be off to your |
| high to meet are most likely the result of false | | | | competitor who does not require them to jump |
| promises made during the conversion process. | | | | through hoops and appreciates loyalty by |
| While presenting ones product and company in a | | | | providing incentives for repeat and long term |
| good light is understandable and not a problem, | | | | customers. |
| are exaggerations of key elements of your | | | | 4. Communication |
| product or service that are critical to your | | | | Stay in touch with your customers and |
| customers doing more harm than good. You | | | | communicate with them on a frequent basis. It is |
| might get the initial sale, but you will probably lose | | | | not easy to determine the optimum frequency |
| the customer as soon as they can away. | | | | for contact initiations that you contact them often |
| If you did all of this wrong, good customer | | | | enough that they do not forget about you, but |
| service will not help you very much to make a | | | | not too much that they get annoyed by it and |
| customer happy and retain him. | | | | start ignoring it or worse, consider it spam and |
| Good customer service can do exactly that in | | | | filter it out by automated means. This is a science |
| cases where something is not clear to the | | | | by itself. Next to the frequency is also the |
| customer and requires explanation or clarification. | | | | message itself very important. Not every |
| Nothing is 100% perfect all the time and errors | | | | customer has the same needs or interest. The |
| and misunderstandings happen. This is usually not | | | | "one message fits them all" approach is not only |
| the end of the world and can be fixed easily | | | | less effective and converts poorly, but also |
| without letting it escalate. Good customer service | | | | increases opt-outs and filtering out of those |
| is critical in those cases to resolve the issue | | | | messages. |
| quickly and without having the customer go | | | | Making a message personal for every customer is |
| through a complicated and lengthy ordeal. Doing a | | | | not easy, although it is the ultimate goal, but you |
| good job here will turn an upset customer into a | | | | can at least make customers feel as if the |
| loyal customer and even evangelist for your | | | | message is personal for them. The easiest thing |
| company and your services. | | | | to do is to address them with their name rather |
| 2. Usability of the Site Make it easy for new | | | | than addressing them like "Hello Customer". To |
| customers to find their way through the site and | | | | provide messages that are as relevant as |
| get them to convert. At the same time keep in | | | | possible, is it useful to segment your customer |
| mind the existing customers who already | | | | base. The segmentation can be done based on a |
| purchased from your site and know their way | | | | number of criteria and depend on what you offer |
| around. Make it also easy for them to get what | | | | and the types of customers, their interests, |
| they want quickly. | | | | financial status etc. A single customer can be |
| 2a. Customer Profiles | | | | assigned to multiple segments, which overlap and |
| Allow users to create a profile to store address | | | | serve different purposes. |
| and billing information. This sounds obvious in this | | | | There are numbers of methods you can use to |
| day and age, but there are still plenty of sites | | | | contact your customers. While a phone call or snail |
| that do not provide this capability. Allow | | | | mail can be appropriate and useful so is email still |
| customers to store multiple shipping addresses | | | | the most common and cost effective way of |
| with their profile. It is not unusual that people use | | | | communication between e-tailers and customers. |
| their home and work address depending on the | | | | There are tons of services out there that let you |
| things they order. Also keep in mind that people | | | | manage your email lists, segment your customers |
| buy more and more gifts for friends, family and | | | | and keep the list clean and up to date. The cost |
| business partners or customers (B2B) online, not | | | | vary significantly and depend on the number and |
| just for Christmas, but also other occasions, | | | | type of features you need, how much of the |
| including birthdays. | | | | work the services will do for you, if you can't or |
| 2b. Expedited Checkout Process | | | | do not want do everything in-house and from the |
| A multi step checkout process that is simple and | | | | size of your mailing list and frequency of mailings |
| easy to follow for a new customer is great, but | | | | (= email volume). |
| can be annoying for an existing customer where | | | | |