In a rough economy like today’s, a strong customer retention strategy is important for any e-commerce business to thrive. It is far more costly to obtain a new customer through advertising than to market to an existing customer. Yet so many companies make simple mistakes that cost them several customers each day. Before you spend a dime on advertising, keep in mind these three popular ways of scaring your customers away:
Method #1: Don’t Reply To Their E-Mails
When a customer e-mails your company, an opportunity is born. You have a chance to quickly respond to your customer and help them with something. Yet many online merchants seem to ignore this. While perusing the customer feedback profiles of several of my competitors, this was the number one customer complaint, hands down. People were upset that their e-mails were not answered in a timely manner, or even answered at all. What’s the point of even being in business if you’re going to ignore the people who keep you in business?
Method #2: Take Your Time Delivering the Goods
When a customer places an order, a fast turnaround time is critical. If you take too long to get them what they paid for, do you really expect them to hurry back to your store? If you don’t act quick to get your customers their products, they won’t be acting quick to do business with you anytime in the near future. Once again, this is something that’s extremely basic, but often forgotten by many merchants.
Method #3: Misinform Your Customers
Too many merchants have no idea about how merchants’ liability works. If you ship a product to your customer and it is lost in the mail, the customer has every right to call their credit card company and do a chargeback. Too many chargebacks, and you risk losing your merchant account, or being hit with stiff penalties. Many merchants tell their customers that they’re responsible for purchasing insurance. This is a huge scam. The buyer is never liable for undelivered goods when paying with a credit card. eBay has even made it a listing violation to ask your customers to purchase insurance. This is the seller’s responsibility; it always has been and it always will be. If you want to scare off customers, tell them they’re fully liable for any lost shipments if they don’t purchase insurance. As customers become savvier, they will not put up with companies who try to get away with this practice.
Good Communication Is Important
Good communication, fast turnaround time, and honest business practices are the lifeblood of any business. If you want to guarantee that your competition gets the share of the market that could have been yours, just follow the three methods in this article and you’ll be out of business in no time at all!