You've
heard me say this a lot: keep your customers happy -
downright delight them - and you’ll develop loyal
customers.
There's
more than just a (hopefully) smiling face on the other end
of your website, there's a dollar equation taking place.
You "bought" that prospect with your
advertising, marketing and maintenance dollars. That's
money out of your pocket. And truth is, first-time buyers
almost never spend enough to offset that cost.
However,
a repeat buyer gives you much more than that warm, fuzzy
feeling of having made a sale and conducted a transaction
well. He or she keeps increasing your revenues. Yeah, you
want to get lots of the right people to your site, but you
really want to work on delighting them so they come
back!
Let me
throw a few statistics at you.
·
"Fewer
than 5% of B2C website visitors make a purchase."
(Nielson/NetRatings) Intermarket Group says the
conversion rate is closer to 2.7%. Shop.org says it’s
only 1.8%. Depends on who you read which day, but take
it from me - the numbers are appallingly low.
·
"Companies
spend an average of $250 on marketing and advertising
to acquire one single customer." (Shop.org)
·
"The
gross income from a typical customer is $24.50 in the
first quarter and $52.50 in every quarter that he or
she remains a customer." (McKinsey & Co.)
·
Two-thirds
of all first-time buyers do not return to purchase
again.
·
"A
10% increase in repeat customers would translate into
a 9.5% increase in revenue." (estimate by
McKinsey & Co.)
See
what I mean? You spend $250 to rope them in, and they buy
$24.50 worth of stuff from you. Sixty-six percent of them
don't come back, so you never see that subsequent
quarterly $52.50 from them. Can you say "red
ink"? But look what you stand to gain if you get them
coming back again and again!
We've
talked about the whole "beef stew" (love the
stuff!) of elements that go into satisfying your
customers. Everything is important - you can't overlook
the basics such as customer service, fulfillment,
policies, decent design, and so on. But once you have a
customer, you can set about managing a relationship with
the person that might include newsletters, mailings of
special offers, new product or update announcements. Don't
discount the value of snail mail in these efforts! One
human I know made an online purchase. Later she received a
paper newsletter in the regular mail and discovered an
item she wanted to buy. She'd also received several
e-mails, which she had deleted unread. (Typical!)
Perhaps
most effective of all is to focus your energy on helpful,
personalized site options that have people longing to come
back. Amazon.com does this one-to-one online salesmanship
brilliantly. Look at their searchable Wish List. Their
Shopping Cart has a "buy
later" option. They have an incredible 1-Click
feature (no wonder they want to maintain that patent!).
They offer "Customers who bought this book also
bought…," listings for almost every item. Notice
how they can offer recommendations that improve over time,
as a customer adds more information to the query database
through each purchase. And get a load of the "Page
You Made" based not on your purchases, but on where
you've been clicking during that session! Even if you
don't buy more than you originally intended to right then,
you might click an item into your shopping cart and save
it, or add it to your Wish List. And you'll want to
come back.
Amazon
expertly manages to create, in the world of e-commerce, a
perception of community, something you might want to be a
part of. They entice and reward their customers at the
same time with features like Listmania, online reviews,
Friends & Family. Best of all, this online sales pitch
Amazon has created is not intrusive. For lots of
folks, it helps, not hinders, the sales process - and
leads to even more sales.
If you
can find a way to apply variations of Amazon’s tools and
incentives to your own site, all the while giving your
prospects the shopping experience of a lifetime, you'll go
a long way to encouraging your customers to return. And
each time they do, you sell more without having to spend
more to acquire them. Even on Mars, that spells p-r-o-f-i-t!