Most companies know that retaining an existing customer is a far more efficient way to secure revenue than attempting to acquire a new one. But for big-ticket retailers, this can be a huge challenge, says Fortegra's Paul Dobbins …
Even if customers aren’t going elsewhere for service, they’re probably buying less frequently than they do at value competitors. Many consumers tend to stretch big-ticket purchases like furniture, household electronics and cars as far as they can before replacing them.
Because of this, retailers need to get creative to keep those customers coming back into the store. Sound difficult? It doesn’t have to be. Here are three ways to offer value to customers who buy less frequently:
1. Financing options
With all of today’s expenses, financing can be a game changer for customers thinking about putting off a major purchase. By offering payment plans, you can make it easier for consumers to decide if it’s worthwhile to replace items like a couch or TV sooner, rather than trying to make that old model last for much longer than intended.
2. Extra protection
Just because a customer wants to make their purchase last past its prime doesn’t necessarily mean it will. Protection plans help customers avoid paying full price on replacing big-ticket items in the event of a disaster, or even due to everyday wear and tear.
Promoting the true value of warranty solutions can help put this small add-on into perspective, showing customers you genuinely care about saving them money in the long run. Plus, extended protection gives customers a great reason to stay connected with you long after they make that initial purchase.
"Promoting the true value of warranty solutions can help put this small add-on into perspective, showing customers you genuinely care about saving them money in the long run"
3. Exceptional customer service
Providing a positive experience every step of the way is critical to customer retention. Establishing meaningful customer service policies and encouraging your staff to provide friendly, personal interaction is the first step to creating loyal customers. And it doesn’t always need to be major interactions—even a simple smile as they enter the store could help a customer develop an attachment to your business.
Retaining customers between big-ticket purchases means showing them that they’re more than a sale. By implementing specific efforts to keep customers happy, you can create brand advocates that will return to your store for future purposes both big and small.
Paul Dobbins is national director of sales and account management for Fortegra Financial Corporation, an insurance services provider that offers a range of consumer protection options.
