Ecommerce statistcs and starting a new business gurus constantly state that customer retention is an important factor in the survival and growth of a company. It does not matter if you are a manufacturer specializing in the production of specialized instruments with two or three clients or an online web store with thousands of customers — every customer is important. Remember that one bad remark can go a long way towards destroying a company’s credibility and eliminating a customer base regardless of its size.
In this article we will explore the use of reward points (a feature available with InstanteStore’s shopping cart service) in retaining customers as well as improving sales conversions for new visitors.
The reward points feature is available with the InstanteStore shopping cart service. This is a wonderful income opportunity home based business feature which is easy to use and can potentially lead to better sales. As we explored in these two previous posts – Cross-sell Your Products To Better Sales and Selling Variations To Improve Sales – repeat customers are very important to a store. If customers come back to a store and make follow-up purchases, it means there are a few things about the store that are working right, either in general or for a particular customer niche. Happy customers tell friends and make recommendations. In short, they’ll do a lot of your advertising for you.
In this article we will look at Reward Points. Reward points work the same way as reward stickers or point coupons that conventional offline stores use to very good effect. Many marketing strategies that are often used by offline stores can be adapted for online stores as well. The reward sticker system has been used for years because, plain and simple, it works. The use of accumulative point systems by credit card companies, airlines and fuel kiosks are testament to their effectiveness in retaining customers.
Merchants usually reward customers for making purchases but they rarely reward visitors. You might wonder: What should a visitor be rewarded for? In earlier articles we talked about making pages sticky and getting visitors to carry out certain actions like taking surveys. Merchants should reward visitors who take part in quizzes and surveys with reward points which can then be redeemed for discounts at the store once these visitors have collected enough points.
Visitors are more likely to return if they have a good reason to. Make sure you convey how easy it is to gain reward points. Ensure that your surveys and quizzes are updated weekly to keep it interesting. This is the bait that will lead to a first purchase for many customers.
To summarize, maximize your shopping cart service features and use reward points to retain customers as well as to convert visitors. This may well result in a slower conversion rate for a period as it takes time to accumulate points but in the long run, this investment should have a positive effect on your sales.
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