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Retail- Customer Retention

Are Loyalty & Reviews the Driving Force behind Customer Retention?

You will not have a second thought when it is said that product and site reviews are invaluable in your business and also for the growth of your brand. Social proof collection and establishing the most needed trust from the moment your customers interact with your brand is very vital as it facilitates customer retention. Some of us will be wondering what action the businesses will take once their customers provide them the star-ratings of their choice. How are brands utilizing the most of their customer reviews which are really hard-earned in the current scenario?

Loyalty programs are incorporated into their reviews strategy to build a high customer retention rate. 

Harmonization of loyalty & reviews strategies: 

New channels within Ecommerce marketing highly target the initiatives that enhance customers’ average order value (AOV), customer retention, and customer lifetime value (CLTV) by taking advantage of the amalgamation between brand loyalty and reviews solutions. In simple words, we can say that the brands are making use of their loyal customers’ star ratings and reviews provided by them as one of their customer retention strategies.

As per the recent study, loyalty programs are very vital for user retention owing to the aftermath of the pandemic. Moreover, for the smooth functioning of your business, retention of high-intent customers will be considered as a wise decision in comparison to the acquisition of new ones.

According to the latest survey, it has been found that nearly 65% of the shoppers wish to shop directly from their loyal brands. 

Retention Strategy’s First Step- Reviews: 

It has been found that more than 94% of purchases for products are happening only when the users glance at the 4- or 5-star ratings of the product. This is evident to show how much trust most of the consumers put in the word of their fellow shoppers. 

Next million dollar question which flashes in your mind will be: How do you get more positive reviews/ 5-star ratings? You will get nothing for free. So, you can offer points to your happy loyalty program members in exchange for their positive feedback as they may pave the way in increasing customer retention. Not only do you keep your loyalty members jubilant and incentivized to buy with the points for their purchase; but you also create room for additional social proof for new customers. 

Easy Ways to build retention with Loyalty and Reviews:

Loyalty programs and the reviews strategy are known for the stimulation of repeat purchases, establishment of brand trust, and enhancement of community engagement. Hence, the combination of these two efforts keeps the majority of the shoppers engaged and coming back for more purchases in the long run. Customer Retention is the main catch involved.

  • Boosting Customer Lifetime Value (CLTV) by leveraging reviews 

           Most of the businesses witnessed an upsurge in their CLTV by 2x after just one year just by focusing on converting their first-time shoppers into repeat customers and, gradually, making them don the role of ‘brand advocates’, by building a community effectively.

  • Maximizing repeat purchase rates and AOV with cooperative customer experiences

            In the current business world, almost 50% of consumers prefer to enlist with a brand’s loyalty program via mobile device when they do shopping in-store. This kind of hybrid shopping experience advocates that shoppers are searching for loyalty experiences that are highly user-friendly and pave the way for the unification of online shopping and offline shopping.

Enhancement of CVR with Social Proof

Social proof is one of the most important factors in marketing that allows you to promote and showcase your brand and meliorates the feasibility of attracting more customers and also client retention.

In a nutshell, we can say that rustling reviews into user retention is always possible with apt technology. Moreover, with the skyrocketing growth of Ecommerce, brands are tasked with staying pertinent and also up-to-date in an extremely competitive online landscape. By foraging existing loyalty customers’ feedback and also by incentivizing brand engagement, businesses can create very amicable and strong emotional connections and sustain brand loyalty virtually with no customer retention cost.