It’s no secret the Amazon marketplace has been a great way for people to start their own businesses and make money from the comfort of their own homes. In fact, 2020 has seen more people joining the Amazon marketplace than ever before. Since the start of the year, people have been searching for new ways to make money from home. Although the Amazon marketplace continues to expand, there is one significant factor for sellers that have started to see a change… customer retention.

In 2020 Amazon sellers have started seeing the benefits of customer retention and marketing automation to grow their business. Not everyone is savvy enough to do it independently. Others believe it just costs too much and simply isn’t worth it.

But what are marketing automation and customer retention, and why is it so important? Below we’ve compiled a list of reasons ALL Amazon sellers should incorporate some form of customer retention or marketing automation.

It’s cheaper to retain existing customers than it is to acquire new ones

If it wasn’t evident from the title, over the years, it’s been statistically proven that it costs more money to acquire a new customer than it does to keep an existing one. Studies have shown that it can be 25% more expensive to bring new customers than to retain existing ones. By implementing email funnels or regular newsletters, you can quickly get back existing customers to buy from you. Customers who purchased in the past from your store are more likely to return for a second or third purchase.

Build stronger relationships and get better engagement with your users

Implementing funnels and sending out regular communications to your customers can help you create and maintain strong relationships. Statistics have shown people prefer to buy from brands they know and trust. Regular contact with your customers can help create this connection to your brand and to your products. A simple newsletter sent out regularly can help keep people informed of new products you have, restocking of products that were no longer available, or let them know about any special promotions or discounts your running. If someone has opted to receive communication from you, it’s up to you to ensure you provide them with regular communications. Otherwise, they end up forgetting about you over time.

Sending the right message to the right person at the right time

The old expression timing is everything truly applies here. The old way of doing things, which involved sending one message to everyone in your list, is no longer effective. By segmenting your customers into smaller groups or user personas, you can better understand who your customers are and what messages to send them. Considering the information, you have on your users, such as personal info or info on what they purchased, can help you send more targeted and highly effective offers.

Improve your conversion rates

This ties into the previous point. By sending the right message to the right person at the right time, you can drastically increase your conversion rates. By targeting users according to which group they belong to or which products they previously purchased, you can make sure to send them much more effective offers. It’s essential to maximize every communication with your customers to get the most out of your marketing efforts.

Fairly cheap to implement

If you’re worried about the cost of implementing marketing automation and doing regular communications with your customers is too expensive, then worry not. Depending on the type of activity you wish to run, the cost can be relatively low. For example, if you’re looking to send regular email offers to a list of up to 2,000 customers, then MailChimp has a free option available. In many cases, the investment needed to get started can be quite minimal, while the returns can be quite large. Studies have shown that a 5% increase in your marketing activities’ investment can improve profitability by up to 75%.

Are you currently collecting your customer’s details? Perhaps you’re placing a printout in the package asking them to visit an online site and signup or maybe you do it some other way. If you’re engaging in any similar activities, then you’re already one step ahead of your competition. If you aren’t fear not, ThreeeDots can help. Want to get started with marketing automation or some basic form of customer retention? We can help!

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