Retaining customers and having them consistently place re-orders is the best way to succeed in business, and especially in e-commerce. But it’s not as easy as it sounds.
Part of that is because it tends to be a long term play.
The majority of the revenue from repeat customers can come in as many as 31-36 months from first purchase. But you’re looking for action now, while also trying to grow your current customer base. You’re looking to stay in business now. It’s hard to put that aside to think about what will happen in three years. That’s why, according to some estimates, companies spend five times more acquiring new customers than on keeping existing ones.
That speaks to a culture of instant gratification and thinking about one order instead of many. It can be very tempting to focus on getting the next order, no matter where it comes from.
But there needs to be a balance. Customers who only purchase once are still a form of revenue, and that revenue can be meaningful, especially at scale.
However, long term, sustainable, continuing revenue is a more secure and reliable way to stay in business. Think about it this way: Customer loyalty is worth up to as much as 10x as their first purchase. A small 5% increase in customer retention can increase a company’s profitability by up to 75%. Think about where your business could be if that number was 10% or even 25%. When you reframe the discussion that way, it makes thinking long-term a lot more palatable. It makes it an essential part of your business plan.
It’s simple: When you spend a little more time and resources on existing customers, the benefits to your business could be substantial and long-lasting.
Or think about it this way: How can you turn a one-time customer into a long-lasting customer? The answer to that question can be a major profit engine.
This is not a new question for businesses. For years business leaders have asked, “How can we retain customers and get the most of the CLV while also continuing to operate and grow?”
For years, that answer hasn’t been readily available.
But now, for the first time, when you implement a combination of artificial intelligence and text messaging campaigns, it can be achieved.
TXTFi is a brand new tool on the market that is built for e-commerce and, in particular, the first and only tool that’s specifically built to engage and secure repeat customers. It’s an automated bot, powered by artificial intelligence and machine learning, that allows customers to re-order your products right from within the text message. It runs in the background, with very little oversight needed. After a quick set up process that takes about 15 minutes, TXTFi allows you to work on acquiring new customers while reaping the benefits of your repeat ones. It’s a brand new revenue stream that, until now, hasn’t existed.
TXTFi is based on AI and machine learning. As soon as you install it, it immediately begins searching for repeat customers that are ready for a reorder. It automatically personalizes the message based on what they’ve already ordered. This is not a form message. This is unique to each customer. The customer answers a few questions, get a pre-filled checkout link, and they’re on their way. This is the only tool that allows customers to place their orders right within a text message. You don’t have to do much other than watch the earnings come through your door.
This machine learning, AI-powered tool can increase your business by up to 20%. And it does that without adding time or resources to your company or yourself. It really is set-and-forget. TXTFi runs in the background, with little to no intervention. You are freed up to do the things you need to do to make your business successful.
Why does it work so well? It moves the conversation to a sms message thread, instead of email messages.
Most businesses need to be texting, not only because it generally receives better engagement, but it’s because where the customer lives. Emails get lost in avalanches of messages. Texts stand out. Consider the following:
- 64% of consumers believe that business texting is needed to interact with customers more often than they do now
- 74% report of improving customer impression on businesses that interact with them via text
- CIO Today found that 64% of people would prefer text messaging over phone calls when it comes to customer service. In addition, they found that 77% of people between the ages of 18-34 have a better perception of a company that send texts
- 39% of businesses are already interacting with consumers via text
Not only do consumers want businesses to engage with them via text, but not enough are doing it. That means an opportunity for your business. And because TXTFi is the only company that allows consumers to re-order your products right within the text message, we’ve found a 29% engagement rate and a 2-7% conversion rate, both light years ahead of email. When you text your consumers, good things happen.
This is how commerce should work. It should be easy to set up. It should focus on the customers that give you the best Long term value. And it should give leadership the time and energy to seek out new customers and convert them into recurring ones.
And when you utilize SMS message instead of email as your marketing strategy for your e-commerce brand, you have a much better chance of not only reaching your consumers, but converting them into long-term evangelists for your business.
Success these days, especially in the e-commerce field, is all about retaining customers. It’s about maximizing the CLV. When you maximize as many customers as you can, you’re in good shape. And when you can have the proper time to find new customers and then extract their long-term potential, you are truly setting yourself up for a long-term, successful business.
This is how e-commerce should work. It’s how it needs to work. And it’s finally available for all to take advantage of and benefit from.
Get Started in Minutes with TXTFi’s Shopify Connector.
Jeremy Fuchs runs content for TXTFi and is an experienced writer, editor and content strategist.