How Does Customer Retention Increase Sales and Improve Margins?

Once you have a customer, you have to keep them…

 

 

In today’s world, many businesses focus on customer acquisition. But little attention is spent on Customer Retention. Companies concentrate on bringing new customers in the door, leaving existing customers to feel undervalued.

Acquiring a new customer is often 5-10 times more expensive than retaining an existing one. And depending on your fixed costs, an increase in customer retention can boost your bottom line profit 25%-100%.

Most importantly, customer retention isn’t just about future purchases and up/cross-sell opportunities. It’s about creating word-of-mouth advocacy and referrals — the most important form of marketing.

 

How to retain current customers and get them referring more often?

Customer retention is a result of combining customer satisfaction, engagement, loyalty, and trust. Each must be monitored, measured, analysed, and acted upon to keep your customers coming back for more.

 

At the core of this lies the Customer Experience (CX).

You should have a clearly defined CX strategy, ensuring a smooth and easy experience at every touch point. You want to put the customer at the heart of your business, focusing on their needs and wants. And, you want to measure and track the Customer Experience to identify key areas for improvement.

 

A Customer Experience Management(CXM) platform can help with that.

 

Customer Experience Management refers to a system of:

  • Collecting customer feedback
  • Engaging with customers to create relationships
  • Measuring effectiveness and bottom-line results
  • Improving retail experience based on customer feedback

This systematic approach helps manage experiences. It helps you understand what your customers want, building loyalty and increasing retention.

 

Create Higher Profitability with CX

By actively engaging, listening and responding to customers, you gain their trust, loyalty and enthusiasm.
And by taking into account their feedback and behaviors, you’re able to make more intelligent business decisions to feed bottom-line results. Resulting in higher retention rates and greater lifetime values.

 

Customer Experience analysis can help with retention marketing strategies as well. It allows you to tailor your products and services to match your customers personal values and preferences.

The key is to identify the trends from data your customers submit through messages and surveys. Then take action!

 

Now, you’re able to intelligently invest in you marketing. You’re better positioned to launch new products which has a reciprocal benefit for your customers and your margins.

If you’d like to learn more about RipeMetrics, and how we can help you improve customer satisfaction, loyalty, retention and repeat purchasing…

Schedule a Demo Today

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Product Knowledge Increases Sales

Customers need to feel you have their best interest at heart. Customer tastes are constantly changing. It’s important to monitor these trends to understand the evolving customer demands.

Knowledgeable budtenders understand what other customers are saying about specific products. They’re more informed and able to make better recommendations based on unique customer needs. This results in higher customer satisfaction and a better customer experience.

 

And employees with a greater understanding of the product feel more confident selling to consumers.

Training sessions, testimonials, and personal use are all great ways to gain knowledge. Capturing feedback directly from your customers is another important factor. But it’s often a time a consuming, tedious and manual process.


Voice of Customer (VOC) feedback surveys helps budtenders better understand products. They’re an excellent way to stay on pulse of customer demand.

Customer Experience Management (CXM) platform makes it easy to automatically send a survey after a purchase. It allows you to track the performance and interpret the results.

 

 

By identifying the trends and patterns, you’re able to adjust inventory to sort out poor performing products and optimize your business. Simple reporting allows you to share the results, so your team and budtenders are more knowledgeable and better trained.

 

When customers feel listened to and happy with their product and service, they’re more likely to purchase more frequently, and spend more when they do. They’re also more likely to recommend and share their positive experiences with their friends and family.

 

 

Being able to quickly track, manage and respond to your customer experiences feedback can help improve overall operations. You can eliminate unnecessary cost and make room for new upcoming products to introduce your customers to. All of these strategies can be used in combination to overall increase sales.

If you’re ready to discover how RipeMetrics can help you on your journey to build a world class Cannabis Customer Experience, let’s setup a demo today.

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Need to Know: The 3 R’s of Customer Marketing

RipeMetric’s 3 R’s of Profitable Marketing: Retention, Referral & Reputation Management


Effective marketing is a challenging task. There are some basic steps your business can follow to receive a larger response and bring in more profit.


RipeMetrics employes 3 key fundamentals for modernized marketing to create a profitable marketing plan:

  1. Retention
  2. Referrals
  3. Reputation Management



  1. Retention – Acquiring new customers is extremely costly, with estimates stating that it’s 5-10 times more costly to acquire new customers than retain existing ones. Retention marketing focuses on your customers with the goal to create repeat customers, and increase both their frequency of purchase and the average order volume per purchase.

    Offering personalized deals to customers based on their purchases can help retain a customer, continuously bringing them back . 



  2. Referrals – Referral marketing is word of mouth marketing. Loyal customers are likely to refer to your business and products. Encouraging your customers to tell their friends about you is also a strategy of referral marketing.


    Having a personal relationship with the person referring you to a business creates an initial sense of trust. A lot of money can be saved with referral marketing because it doesn’t cost money, it does require providing a good customer experience.



  3. Reputation Management – Your reputation is something that can bring in sales or drive them away. The way a majority of customers choose a business depends on the review sites.

    Reputation management is monitoring and influencing the online reputation of a business and brand
    Using a comprehensive Customer Experience Management platform and Customer Data Platform allows you to maintain a good reputation by resolving concerns in real time and directly with your customer before a bad review is written.


Conclusion

Retaining customers saves you money on acquiring new ones and at the same time your loyal customers continue to refer and bring in business.

Giving your customers a good customer experience promotes loyalty and good reputations. Using all 3 R’s Retention, Referral, and Reputation management are key strategies that when used together have an entourage effect for a profitable marketing plan.

RipeMetrics is the premier CXM for the cannabis industry. Sign up for a demo today to discover how RipeMetrics can help you on your journey to build a world class Cannabis Customer Experience.

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