Customer Retention, Customer Value Optimization, Guest Posts

4 Ways to Improve Customer Retention in eCommerce

Our main priority as marketers should always be to satisfy our customers and inspire loyalty, by positioning our eCommerce companies as part of a considered set of brands that are immediately recognizable to consumers. We can achieve this through a number of strategic choices. In this article, we cover some of the customer retention tips and tricks that will hopefully ensure your business keeps the customers it has already acquired through hard-won digital marketing efforts. 

Improving customer retention is essential because it is much more expensive to attract new customers than it is to retain the ones you already have. Investing time and a relatively small amount of money in this endeavor makes for a high ROI and greater profitability. Making customers to repeat purchase and order one more time is one of the goals for the retention strategies presented in the article.

Provide Support

Customer support comes in many forms. A solid UX is a type of customer support, the kind that prevents people from having to contact you in the first place with faulty checkouts and other backend bugs. Mobile optimization is another fundamental part of customer experiences. Nowadays, so much of online shopping takes place on smartphones that if your eCommerce store isn’t at its best on mobile, you’re doing your business a serious disservice. 

When customers need assistance, you must ensure it’s not difficult for them to get it. It is, therefore, extremely important that you highlight your contact details because our customer support needs to be buoyed by multiple touchpoints. 

Live chat is an option, as is a reliable social media presence that can be messaged both publicly and privately. Because people tend to prefer the idea of speaking to a real person, you should ensure that complex problems eventually find their way to human helpers rather than automated ones.

Figure Out What Went Wrong

If a visitor comes to your site and leaves sooner than they should, look into why that happened. You might have issues with cart abandonment, conversion rate optimization or delivery and return. Implement an exit survey that includes space for comments. 

When a customer deletes their account, it is a good idea to do some digging. Respond with an email so you can get an insight into what prompted the departure. Then, fix any issues as quickly as you can. If some aspect of your site has bothered one person, the odds are high that it will have bothered a dozen other people. 

Measuring retention rates, customer loyalty, and frequent purchasing is essential to grow your business and increase profits. 

Try to determine where the friction points are, and whether particular types of consumers are affected by them, the rate between unique customers versus repeat customers (customer churn) is another indicator. Make changes, and use split testing or A/B tests to see whether those changes are having the desired effect. Your efforts shouldn’t stop there, however, and it would be extremely useful to ask your long-standing customers how they believe you can do a better job.

Content Marketing

Visitors to any online store go on a journey. People don’t usually fork out money instantly, especially when the purchase is a relatively costly one. If you sell low-cost items, then yes, impulsiveness and dazzling graphics can instantly convert. In most other cases, however, it takes time and consistently appealing content to make your customer base to fill the shopping cart. 

You must ask yourself a few questions: To begin with, are your product descriptions persuasive? Do they contextualize products? Perhaps more clarity and product education are required to retain customers?

One way to reward customers for newsletter subscriptions is by giving discounts to those who sign up for content. But, once subscribed, go easy on them! When companies send emails daily, customers mentally file them away as Spam. Depending on your offering, this approach might work for you, but few companies have something unique to offer customers every single day.

A weekly blog, however, is a different story and is much less likely to provoke an ‘Unsubscribe’. That’s four times in the month where customers can interact with and remember your brand. Provide value through links to high-quality copy and visuals. Avoid clutter: you don’t want to distract potential customers with unnecessary information.

Give visitors an opportunity to see what’s new in your corner of the internet. If you’re a food retailer, for example, weekly recipes comprised of ingredients you sell are a good example of how to create value with a business blog. Blogs subtly coax new and old customers into purchasing. They’re also a great way to rank higher because they establish credibility.

Lead Nurturing and Incentives

Apart from directing customers to blogs, emails are used for offering exclusive promotions and customized content to signed-up customers. When you segment your email subscribers, you will be able to deliver personalized product recommendations to their inboxes. These emails have a higher chance of being opened and, in turn, a higher chance of converting customers.

Include social proof signals in your emails. If you want more customer reviews or refer your offering, incentivize doing so. Sharing the brand with new people should be rewarded with store credit, for example. Not only does this do a costly job to attract new customers, but it also prompts current customers to buy again.

Loyalty programs can also really help with customer retention. People are always on the hunt for value and they stick with companies that offer value. Loyalty programs are more and more used in retention marketing to improve retention rates.

Another incentive can be applied to cart abandonment, the rate of which can be reduced by email follow-ups that remind the lead about their choices. You should try to nudge leads to complete purchases with, for example, free delivery.

Different Goals, Similar Approach

Many of the same tactics that help you convert more leads, such as improving UX and using urgency during sales, can be applied to customer retention and customer loyalty. When you aim for a constantly improving conversion rate and use a conversion rate optimization (CRO) tool, you’ll find that you get more out of existing customers.

CRO software tools can provide heatmaps and session-recording capabilities so that you can see how customers feel and move around your site, in terms of both where they engage and where they tune out. Ideally, you want a tool that combines these functions for convenience and affordability. User-friendly software can help you increase macro conversions, such as your sales, as well as micro-conversions that nurture leads.

It is also worth looking into the customer lifetime value (CLV) of your buyers. Your customer retention rate can be factored into the equation. Customer acquisition and service costs can also be used as inputs. Mostly, CLVs look at gross margins and the nature of previous transactions in order to project and predict the future and assess the total value of keeping customers happy.