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The 4 Pillars of Customer Retention

The sales funnel starts with getting leads and then driving them to a landing page. The landing page converts visitors into customers. Then, brands and businesses should nurture them to become advocates and loyal followers. According to a digital marketing speaker Hong Kong, the cost of getting a new customer is five times higher than retaining existing customers.

Even a social media agency Hong Kong agrees that the probability of selling to an existing customer is much higher than selling to a new one. There is only a 5% to 20% chance for a new customer to make a purchase. While there is around a 60% to 70% chance for an existing customer to buy offerings of brands that they have already experienced.

More than 65% of revenues come from the existing customer base of a brand or business. Loyal advocates spend 70% higher than the new recruits. Yet, for most brands and businesses, the average customer retention rate is only 20%. If you want to increase your profit through a loyal customer base, here are the 4 pillars of customer retention.

Audience Analytics

Audience Analytics means collecting data to get a deeper understanding of who your customers are and what they want. These include the characteristics of modern consumers, groups, and online users. They can be collected through advertising insights, demographics, device usage, social media activities, third-party data, and the use of media sources. Overall, they can help improve brand perception, customer experience, customer retention, and marketing strategies.

Engaging Conversations

Interactive communication is another pillar of customer retention. It means nurturing your audiences and followers with relevant and valuable conversations. According to a video marketing agency Hong Kong, the simplest way is to upload different content formats on social media. Brands and businesses should focus on building long-term relationships by getting feedback and solving their problems.

Personalized Experiences

More than 89% of modern consumers value customer experience as a pillar of customer retention. Brands and business should continuously delight their customers to turn them into brand advocates. Personalized experiences mean treating people as unique individuals. Take a customer-centric approach to make a brand or business stand out. These include:

  • 24/7 chat, email, phone, or social media support
  • Lots of choices between delivery methods, payment, products, and services.
  • Periodic surveys
  • Self-service interface

User Segmentation

The last pillar of customer retention is user segmentation. Do not send ads and campaigns to everyone. People get annoyed receiving too many irrelevant ads and campaigns. It may only result in customers leaving brands and businesses. User segmentation means targeting relevant ads and campaigns based on the customers’ behavior, demographics, interests, location, etc., to get the best conversion results.

THE BOTTOM LINE

Brands and businesses lose $1.6 trillion of revenue every year as customers move away. By adhering to these 4 pillars of customer retention, we’re pretty that brands and businesses will get positive results in conversion and sales.

Reference: https://www.branex.ae/blog/infographics/solid-pillars-customer-retention-business/?utm_source=Sarmad_Twitter

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The 2022 Social Commerce Report

The world has changed a lot. The Internet has made it easier for people to connect to the world. Technology made it possible for brands and businesses to build digital shops. And so, social commerce was born!

According to a digital marketing speaker Hong Kong, out of the almost 8 billion people in the world, half of them are active in social media. This made social commerce a great opportunity for brands and businesses. Even a video marketing agency Hong Kong highlights the boom of live shopping to boost sales. Let us take a look at the basics of social commerce and dig into the 2022 Social Commerce Report!

WHAT IS SOCIAL COMMERCE?

Social commerce is defined by a social media agency Hong Kong as selling products and services on social media platforms. It involves brands and businesses building social media pages and profiles to nurture a community of followers.

Social commerce also involves setting up digital shops. It is where brands and businesses highlight their offerings. These digital shops are equipped with direct checkouts and product detail pages. They are also connected with 24/7 customer support for quick inquiry replies. Digital shops can also be linked to a live broadcast or story to facilitate sales. Features like the autofill payment process and the buy now button make shopping easier for online users.

BENEFITS OF SOCIAL COMMERCE

Besides opportunities, social commerce offers a lot of benefits for brands and businesses. Here are the basics.

Audience Growth

Millions of people are already active on social media. Such a number grows at a significant rate daily. Social commerce allows brands and businesses to have a consistent audience growth. When people love your products and services, they will share them on their profiles. Their colleagues, family, and friends can also share them as they become followers of your page. As the cycle continues, your reach expands, and your followers grow.

Boost SEO

Social commerce has been proven to boost SEO. Many people get used to discover products and services on Facebook, Instagram, Twitter, etc. Digital shops, product catalogs, and video ads can make brands and businesses visible among feeds and searches. They significantly boost website traffic.

Business Metrics

A clear benefit of social commerce is the availability of analytics and metrics. Most social media pages are equipped with data collection and summarization that can become helpful business metrics for your future marketing approach. These include audience demographics, click-through rates, return on spending, etc.

Customer Retention

Social commerce is a great tool for customer retention. The key to the success of social commerce is consistent posting. It makes brands and businesses visible to people’s feeds daily. For existing followers, such visibility promotes retention. It keeps customers updated on what is going on with the brand or business.

THE 2022 SOCIAL COMMERCE REPORT

Below are the key findings for the 2022 Social Commerce Report. This survey was made by The Influencer Marketing Factory, a global marketing agency that specializes in influencer marketing.

  • In general, 29% of online shoppers used social commerce to buy products and services every week. The top 3 industries booming in social commerce are apparel, beauty, and home products.
  • More than 40% of modern consumers prefer online shopping over buying in physical stores. This is because of the convenience and safety they brought about during the COVID-19 pandemic.
  • More than 57% of viewers in a live stream made a purchase while watching. Live Shopping has integrated real-time customer support and product promotion.
  • More than 82% of social media users discovered a product on social media and purchased it directly using a mobile phone.

THE BOTTOM LINE

The market for social commerce is huge. Even with the new normal, it is here to stay!

Reference: https://theinfluencermarketingfactory.com/social-commerce-report-2022/