There is one thing more important than acquiring new customers,
It is customer retention.
According to the statistics, U.S companies spend 2 million dollars yearly on loyalty programs. It is not surprising since the cost of getting a new customer is five times more than maintaining an old one. Apart from cutting costs, customer retention can also give your brand a boost since loyal customers are highly likely to spread a good word about you. Loyal customers are more open to experimenting and are also great contributors to the revenue.
But, the catch to have great customer retention to have better customer engagement which further boils down to having a personalized approach to the customer. The old adage “The shoe that fits one bite another” fits in retail too. As a seller, one cannot sell the same thing to everyone. The selling approach has to be streamlined as per individual customer preferences.
For example: If you browse on Amazon.com for a jacket, on your next visit to the site it’ll show you similar jackets to make your buying easier. At this point, there is a high chance of a visitor turning into a customer. It is also likely that due to the ease of the buying process, it would become one of the preferred channels for shopping.
Artificial intelligence or “proactive artificial intelligence” is one that doesn’t wait but starts offering suggestions on its own based on your previous browsing history or choices. It helps make sellers make most of the customer journey by preventing buyers to slip away. Another advantage with having data of customers is that the follow-up processes becomes personalized too, helping sellers to suggest more relatable special offer than just any discount. AI helps you see a customer not just a number but as a person with specific choices. Eventually, a customer cared for becomes an asset and also the brand’s proverbial salesman.