A customer inside a shop can be easily convinced to buy something than a customer outside a shop. We don’t need much data to figure out that an existing customer is better than a new customer in terms of ROI. The same thing translates when it comes to spending on a customer. Various studies and customer data have proven this time, and again, that business needs to focus on keeping a customer more than finding a new customer.
Increasing customer retention rates by 5% increase profits by 25% to 95%, according to research done by Frederick Reichheld of Bain & Company. Here is a detailed insight into how Customer acquisition vs Customer retention really matters.
When we hear the word Customer retention the first thing that comes to mind is a Loyalty or Reward program. Such programs are a great way to get a ‘Loyal customer’. But here is what goes wrong in this process, most companies focus on getting a ‘Loyal Customer’, but hardly any of them focuses on being Loyal to their customers.
A customer loyalty program should be about being beneficial to your customers because they buy from you. Rewarding them for purchases or engagement can go a long way in ensuring retention.
Most Reward programs are centered around, making customers buy only from you by giving higher discounts, one-time special offers. Such strategies don’t help in the long run. Discounts, special offers or seasonal offers don’t offer you returning customers. Online companies need to reward the customer at every step of the way.
But focus on customer retention doesn’t mean that one should forget about acquiring a new customer. Merchants can use reward programs to attract new customers also. A new customer can get rewards for signing up or subscribing to your store or get store credits on first order. So it is essential that your reward program has a good mix of offers for both new and returning customer.
But how do you find a module that will cater to all such needs for your Shopify account? Here is when Flits app comes to rescue the Shopify merchants. Flits app offers you a module that is easy to use and helps you rewarding your customers in various ways.
Flits app offers
- Credit on Sign up
- Credit on subscribing
- Credit after a certain number of orders
- Birthday Credit
- Monthly credit
- Credit for a specific product
- Credit on Product review
Credit at every step is basically like a packaged treasure hunt where your customers will get some benefit every step of the way. Not only this, you can set the values for all credit options.
How to Use Flits Store Credit program?
- Credit on Register/Sign up
A customer can get credits for signing up on your store. You can select any number of credits as per your wish. If your currency is in Dollars, then one credit will be equal to one dollar. If your currency is in Rupees, then one credit is equal to one rupee. It merely means that credits will get converted to the same amount in your currency.
You can enable/disable this option in > Settings> Credit Setting > Register > Off/On
Advantage: Credits on sign up will prompt new customers to make an account on your store. This serves two purposes, first it may lead to sales, and second, it helps you get customer data for promotional and research purposes.
- Credit on Subscribing
You can add the option to give credits to your customers when they subscribe to your store. Options in are the same as given in credit on sign up. You can select the amount of credit you want to give to the customer on subscribing to your store.
Advantage: Subscriber credit will push the customer to subscribe. Subscriber means they won’t miss out on any new products that you launch on your store eventually adding to sales.
- Credit After X number of orders
Reward your customers after a certain number of purchases from your store. You can select multiple numbers of orders in this section. For example, you want to reward your customer on their First, third, and tenth purchase.
You can set the number of orders and different amount of credit for different orders. You can choose between the amount of credit or percentage credit.
Say you can chose to give 10 credits on first order or 20% credit on first order. This means if the first order is of 100 dollars, the customer can either get 10 credits or 20% i.e. 20 dollars as credit. You can set different values for every order. You can also add multiple similar rewards on purchases and set values for each of them.
Advantage: Just ensuring that the customer signs up and subscribes to your store is not enough. You need to continue the cycle of rewards to make your customers keep buying from you. As a part of Customer Retention, this is very important that your reward system is not limited to just new buyers.
- Birthday credit
Give a lovely surprise to your customers by giving them credit on their birthday. You can set the number of credits you wish to give them on their special day.
Advantage: Birthday credit gives a personal touch to your reward system. This not only signifies that you care about your customers but also give you a chance to spoil your customers a bit.
- Monthly Credit
You have customers who have signed up and subscribed. But you still need that they stay with you, you need to strengthen the relationship. The easiest way to do this is to give a monthly credit.
Advantage: Monthly credit will ensure that customers don’t delete their accounts or unsubscribe your store. Also once a good amount of credit is accumulated, this may even lead them to buy a product.
- Product review credit
If a customer is taking out precious time to critique or praise your product this must be appreciated. You can give rewards to your customers for writing a review of your product.
Advantage: Encouraging your customers to give a review by rewarding them is a golden opportunity to improve your product. Customers often don’t take pains for writing a review, but their opinion on your product is the most valuable. Hence it is important that we nudge them to write a review.
- Credit for a specific product
You have launched a new product on your store, apart from regular promotions you can offer a reward for buying that specific product.
Advantage: Promotion through rewards. A win-win situation for both customers and merchant. The sole aim of Flits credit program is to help you focus on Customer Loyalty. The rewards system is the easiest and simplest way to provide an incentive to your existing customers. Flits also provides features that help with customer acquisition because we should not ignore our future customers.