The Value of Online Customer Retention

The luxury sales marketplace has outpaced their retail counterparts with customer relationship management. While other retailers struggle to learn about relationship marketing, upscale and luxury businesses have long been aware that building long-term relationships with clients is a mutually-beneficial endeavor. (retaildoc.com)

 

Customer Retention By The Numbers

Satisfied and returning luxury customers are not necessarily the retailer’s wealthiest shoppers, but they are their most valued ones. Return customers often pay full price rather than waiting for a sale. They make up just 30% of consumers, but generate about 50% of retail sales and 70% of gross profit margins. (The Globe) That’s right – 70%!!  This is why the luxury sales market is ahead of their mainstream counterparts!  

 

Now, consider this: In the current eCommerce environment, online shoppers are returning just 15% of the time. However they account for one third of ALL online shopping revenue and spend three times more than one-time shoppers! (yotpo.com)  Imagine if the online customer retention rate mirrored the in-store revenue generated by returning customers. The online luxury store’s revenue would soar!

 

Simply put, you will not break even with one-time customers. So, how does the luxury retailer capture more of the online potential? The solution is quality communication and customer engagement on their websites. Through skilled communication and customer engagement, luxury retailers can and will develop relationships with customers that win brand loyalty. The goal is for customers to return to your website because of the gratifying experience of purchasing from a company they want to support. In addition, if your customer has an amazing online experience, they will spread the word to their network of friends, family, and associates. 

 

How Conversation Couture Can Help

Conversation Couture understands that moving to an e-commerce space in the luxury retail market can seem daunting at first. Indeed, it’s challenging to maintain customer relationships and brand consistency. That is why we offer a customized training solution for existing sales associates and managers that is designed, tested and proven to drive greater sales, improve customer engagement, and sustain brand loyalty within a virtual shopping experience. Yes, it can be taught! 

Check out our  Offerings and head over to our Online Learning Center to review the courses available to you now!