[MUSIC PLAYING] As a merchant, it's easy to fall into the trap of just focusing on acquiring new customers. I know, I've done it. A default marketing strategy across email, social, search, or other channels, can have a blinkered focus on just getting in front of new buyers. And attracting new customers is obviously important. I'd say it's the second most important marketing goal.
The first is retention. It's much more valuable to your business to keep the same customer coming back and making repeat purchases than to be constantly acquiring new customers for the same sales. It's actually six times cheaper to make an additional sale to an existing customer than it is to find a new one, and it's much easier too. Why?
Because they already trust you. Most of the work involved in making a sale to someone for the first time is convincing them your brand is trustworthy and that they'll get value from what it is you're selling. Once someone has made a purchase, they know they can trust your brand, and that you offer quality products. This makes the job of getting them to make their second purchase so much easier. It also means you can save a lot of your marketing budget as you don't have to spend as much on activities like brand-building.
A Harvard Business study showed that a 5% increase in customer retention can increase profits by 95%. Before we get started on how you can improve your retention rate with email marketing, I do want you to do one thing. Log into your Shopify dashboard, click on Analytics, and on the Overview dashboard, and take note of your current returning customer rate.
This figure is key and will provide you with a benchmark to compare your progress against. Remember, what gets measured gets managed. So go and take note of this figure now. As you implement all the strategies in this course, you'll start to notice this figure improve. And as it does, your store will become more profitable. Next, I'll take you through what email is the perfect way to generate repeat purchases, and then we'll be ready to start improving your emails.
I'll see there. [MUSIC PLAYING]