Business owners tend to devote their time, energy, and resources to attracting new customers. But if you want to scale your business and customer audience, you’ll need to do more than that.
With most convenience stores’ repeat customers as their target audience, internal changes to current processes can drastically upgrade success. According to 2022 statistics, increasing customer retention by just 5% can boost profits from anywhere between 25% to 95%. In this article, we’ll discuss proactive customer retention strategies your business can start using today.
What Is Customer Retention?
For convenience stores and retail businesses, customer retention is defined as the ability to entice and maintain a healthy customer base. Though most companies seek new and innovative ways to attract new customers, serving existing customers is just as important. Engaging and appealing to people that frequent your store will help develop a loyal customer base that will refer your business to others.
By steering your focus away from one-purchase customers with customer retention, you foster your business’s health. With a high retention rate, you’ll know your products are high-quality, your customer service is exceptional, your marketing strategies are effective, and your profitability is maximized.
Why Do C-Stores Need to Focus on Customer Retention?
As per the 80-20 formula, otherwise known as the Pareto Principle, 80% of business outcomes derive from 20% of inputs. In other words, 80% of sales come from 20% of your customers. That’s why it’s so essential to cater to existing customer needs. Here are some more dynamic reasons why businesses choose customer retention.
- Retaining new customers is five times more expensive on average.
- It is easier to sell to a brand-aware audience.
- Customer retention leads to word-of-mouth referrals.
- Lower marketing costs.
- Increased sales.
5 Compelling Customer Retention Strategies
Now that you know the purpose of customer retention, let’s explore some of the many ways you can proceed. Many of the most successful businesses in the world leverage these tactics to secure a loyal customer base—like wholesale convenience store suppliers, interactive systems, and more.
Offer a Customer Loyalty and Referral Program
This 2019 Customer Loyalty Report dictates the average customer is a member of nearly 15 client loyalty programs.
Loyalty programs ensure your customer’s return by providing incentives for purchases. Customers will gain points per purchase and exchange collected points for discounts, free products, and samples. For example, e-commerce stores reward customers with free shipping once they reach a certain order amount (like $50 or more). You can also drive order value for convenience stores and offer prizes in return.
Referral programs reward customers using social media, messaging, email, or a personal link to refer others to the business. Customers who love your brand will share the business with someone else who they think will love it too. This becomes a win-win situation for both the customer and business store owner, where the customer enjoys discounts and rewards, and the owner reaps the profit.
Support a Cause
With social activism on the rise, people are becoming more empathetic towards other people, charities, and the environment. Being passionate about something will attract customers who match your ideals. For example, you can swap plastic bags for paper to help combat pollution or ask customers if they want to donate a dollar to fight childhood cancer.
Build a Community
When people feel part of a community, they find a reason to return to your business. Create fun in-store events or partner with other brands to encourage customers to visit. This can be anything from live music, a charity event, alcohol or food free samples, and more.
Modern-day society is always on their phones. That means your online presence can be just as significant as your physical one. Make an impression on customers with an engaging Instagram or Facebook and a positive, user-friendly website.
Provide Excellent Customer Service
For 96% of today’s consumers, customer service plays a vital role in brand loyalty. Give customers a proactive experience with friendly and knowledgeable answers to their questions, and ask for feedback on improving your services. Also, monitor online activity and ratings daily for additional insight.
Use a Wholesale Distributor
Convenience store distributors bridge the gap between the manufacturer and business, creating a more efficient, fast-moving, and direct supply chain. They provide business owners with various benefits that cut time and efforts exhausted on inventory transportation. Using convenience store distributors is the most effective way to increase profit, inventory capacity, and product safety while allowing business owners the time to focus on more pressing concerns. This includes:
- market expansion
- simpler processes
- lower cost of business
- new and accessible products
- increased storage
- lower risk
- monitored sales and trends
Why Choose Atlantic Dominion?
Looking for “convenience store distributors near me”? Atlantic Dominion is a wholesale food distributor in the Mid-Atlantic that goes above and beyond to meet your needs. We assist convenience stores with business direction and identify top-selling products that increase your return on investment. With precise, data-driven technology, we can reach your inventory’s true potential so you can spend less time worrying— and more time invested in building a better future.