Article
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December 14, 2024
Keep them coming back: The art of customer retention for brick-and-mortar businesses
For brick-and-mortar businesses, loyal customers are more than just repeat visitors. They're the lifeblood of your operation, keeping the lights on when foot traffic ebbs and competition grows fiercer. But how do you ensure customers keep coming back instead of drifting away to the next shiny new place? It’s not all about better coffee or faster service—though those help.
The secret to customer retention lies in understanding one simple fact: people love to feel valued. They’ll return where they believe their loyalty matters. This is where a well-thought-out strategy comes in. A McKinsey study showed customers who are part of your loyalty program are 30% more likely to spend more in store. Those numbers aren’t just impressive—they’re actionable.
Build community, not just commerce.
Customers don’t form connections with drywall and shelves. They connect with stories, people, and experiences. Think about the atmosphere of your store: does it feel transactional or welcoming? Do your employees engage with customers like humans or just bag up their purchases?
Take inspiration from local coffee shop culture, where regulars are greeted by name, or bakeries where the staff remember your usual order. Those little moments build an emotional connection that’s hard to replicate. Loyalty programs can extend this concept by rewarding frequent visitors with something personal—a free drink on their birthday or a "VIP” invite to a special event.
Example: Cass Café out of Montréal has been killing it with their events calendar, turning their spot into a third space where everyone feels welcome.
Focus on retention over acquisition.
Bringing in new customers is exciting but costly. It’s widely reported that acquiring a new customer costs five times more than retaining an existing one. A focus on retention not only cuts expenses but boosts revenue. According to McKinsey's findings on loyalty program members, loyal customers are proven to spend more—62% more.
Loyalty programs are a retention powerhouse because they give customers tangible reasons to stick around. But don’t stop at “buy ten sandwiches, get one free.” Make it worth their while with surprise perks, early access to new products, or rewards tailored to their preferences. Customers are far more likely to stay when they feel understood.
Use technology, but keep it personal.
Digital technology can be your best friend, but only if used wisely. A mobile app or digital loyalty card can help you track customer habits and preferences. That data lets you craft personalized offers. 71% of customers expect personalized interactions, according to a study by McKinsey!
However, a fancy digital experience means nothing if the interaction feels cold. Use the insights to humanize, not automate, relationships. For example, instead of a generic “Happy Birthday,” send a note about how much you’ve appreciated their support over the year—and throw in a meaningful reward. Everyone loves free shit.
Tap into FOMO.
The fear of missing out is powerful. Exclusive events or limited-time promotions create urgency and excitement. A flash sale isn’t just about discounts; it’s about creating a moment customers don’t want to miss. To add an element of exclusivity, make events available only to loyalty members or give them early access to tickets.
Brick-and-mortar businesses often have an edge here. Unlike online stores, you can create in-person experiences that stick in people’s minds. Think wine-and-cheese nights at a boutique or a kids’ activity corner during weekends at your bookstore. These moments go beyond the transactional and build memories tied to your brand.
Empower your team.
Retention requires the right people. Employees who engage warmly and solve problems effectively make customers feel valued. Regular training, clear incentives, and fostering a culture of customer-first thinking can turn your staff into your best retention tool.
Pairing human interaction with a loyalty program amplifies the effect. Find good people, treat (and pay!) them well, and they’ll stick around and provide a good experience for everyone.
Measure, adapt, repeat.
Customer retention isn’t set-and-forget. Monitor your efforts to see what works and what doesn’t. Track repeat visits, reward redemptions, and even survey customers for feedback. If something falls flat, tweak it.
The beauty of brick-and-mortar is its flexibility. Experiment with ideas like double-points days, surprise giveaways, or partnerships with nearby businesses. Cross-promotions with complementary shops can give customers more reasons to visit and remind them why they chose you over competitors.
Retain!
Keeping customers is an art and a science. It’s about mixing human connection with smart strategies. Whether through loyalty programs, special events, or stellar customer service - every effort counts. Retention might not sound glamorous, but it’s a key to a sustainable business. And the best part? Once you’ve mastered it, those loyal customers start doing the heavy lifting—telling friends, bringing family, and ensuring your business thrives.
The secret to customer retention lies in understanding one simple fact: people love to feel valued. They’ll return where they believe their loyalty matters. This is where a well-thought-out strategy comes in. A McKinsey study showed customers who are part of your loyalty program are 30% more likely to spend more in store. Those numbers aren’t just impressive—they’re actionable.
Build community, not just commerce.
Customers don’t form connections with drywall and shelves. They connect with stories, people, and experiences. Think about the atmosphere of your store: does it feel transactional or welcoming? Do your employees engage with customers like humans or just bag up their purchases?
Take inspiration from local coffee shop culture, where regulars are greeted by name, or bakeries where the staff remember your usual order. Those little moments build an emotional connection that’s hard to replicate. Loyalty programs can extend this concept by rewarding frequent visitors with something personal—a free drink on their birthday or a "VIP” invite to a special event.
Example: Cass Café out of Montréal has been killing it with their events calendar, turning their spot into a third space where everyone feels welcome.
Focus on retention over acquisition.
Bringing in new customers is exciting but costly. It’s widely reported that acquiring a new customer costs five times more than retaining an existing one. A focus on retention not only cuts expenses but boosts revenue. According to McKinsey's findings on loyalty program members, loyal customers are proven to spend more—62% more.
Loyalty programs are a retention powerhouse because they give customers tangible reasons to stick around. But don’t stop at “buy ten sandwiches, get one free.” Make it worth their while with surprise perks, early access to new products, or rewards tailored to their preferences. Customers are far more likely to stay when they feel understood.
Use technology, but keep it personal.
Digital technology can be your best friend, but only if used wisely. A mobile app or digital loyalty card can help you track customer habits and preferences. That data lets you craft personalized offers. 71% of customers expect personalized interactions, according to a study by McKinsey!
However, a fancy digital experience means nothing if the interaction feels cold. Use the insights to humanize, not automate, relationships. For example, instead of a generic “Happy Birthday,” send a note about how much you’ve appreciated their support over the year—and throw in a meaningful reward. Everyone loves free shit.
Tap into FOMO.
The fear of missing out is powerful. Exclusive events or limited-time promotions create urgency and excitement. A flash sale isn’t just about discounts; it’s about creating a moment customers don’t want to miss. To add an element of exclusivity, make events available only to loyalty members or give them early access to tickets.
Brick-and-mortar businesses often have an edge here. Unlike online stores, you can create in-person experiences that stick in people’s minds. Think wine-and-cheese nights at a boutique or a kids’ activity corner during weekends at your bookstore. These moments go beyond the transactional and build memories tied to your brand.
Empower your team.
Retention requires the right people. Employees who engage warmly and solve problems effectively make customers feel valued. Regular training, clear incentives, and fostering a culture of customer-first thinking can turn your staff into your best retention tool.
Pairing human interaction with a loyalty program amplifies the effect. Find good people, treat (and pay!) them well, and they’ll stick around and provide a good experience for everyone.
Measure, adapt, repeat.
Customer retention isn’t set-and-forget. Monitor your efforts to see what works and what doesn’t. Track repeat visits, reward redemptions, and even survey customers for feedback. If something falls flat, tweak it.
The beauty of brick-and-mortar is its flexibility. Experiment with ideas like double-points days, surprise giveaways, or partnerships with nearby businesses. Cross-promotions with complementary shops can give customers more reasons to visit and remind them why they chose you over competitors.
Retain!
Keeping customers is an art and a science. It’s about mixing human connection with smart strategies. Whether through loyalty programs, special events, or stellar customer service - every effort counts. Retention might not sound glamorous, but it’s a key to a sustainable business. And the best part? Once you’ve mastered it, those loyal customers start doing the heavy lifting—telling friends, bringing family, and ensuring your business thrives.
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