A case study in customer retention

I just read an interesting case study put out by MarketingSherpa about Zappos.com, an online shoe retailer. In 2007, this company made $1.6 million in sales. This year, they expect $800 million, and hope to top the $1 billion mark in 2008. How did they do it? By concentrating on customer retention.

Most small businesses put their entire marketing focus on customer acquisition.   They  search high and low for new prospects, and spend most of their budget trying to bring in new sales.  Zappos.com did it a different way. They chose to make their existing clients happy – who in turn refer their friends because of the great customer service they come to expect from this online giant.

It definitely shows in their bottom line.

What can you do to improve your own customer retention?

Higher quality customer service
Overnight shipping
No questions return policy
24/7 fulfillment

Listen to your portrait and wedding photoraphy customers – chances are they are telling you what they want. You just have to listen.

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