6 Strategies to Improve Customer Retention Overnight For Your eCommerce Store
Customer Retention, Customer Value Optimization, Guest Posts

6 Strategies to Improve Customer Retention Overnight For Your eCommerce Store

If you’re running an eCommerce store, you need to retain the customers you have and acquire new customers to grow. Out of the two, customer retention is probably the more important of the two metrics. If you can’t keep your existing customers, your business will never be successful.

But how can you improve customer retention? In this article, let’s discuss some customer retention strategies. First, though, let’s get our definitions in order.

What Is Customer Retention

Customer retention is the process of retaining customers. Customer retention strategies, therefore, are ways to increase the number of repeat customers to a store. 

Acquiring a customer is a lot more expensive than retaining an existing one. Moreover, increasing a company’s customer retention rate results in a spike in profits.

Let me give you an example.

The graph from Shopify below illustrates how a 5% difference in customer retention can impact the growth of a business. You can see that the difference over time is significant.

Source: Shopify

While customer retention strategies help you maximize the customer value, customer acquisition strategies help you build your customer base. In other words, for your eCommerce store to succeed, you need both customer acquisition strategies and customer retention strategies.

Would you like your clients stick to your brand? What about increasing your Customer Value? You’re in the right place.


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6 Strategies To Improve Customer Retention For Your eCommerce Store

There are many strategies you can use to increase customer retention rate. In this section, we’ll look at some of those.

You don’t need to implement all these strategies at once. Choose the ones you think you can sustain first if you don’t have enough manpower. And then experiment to see which combination of customer retention strategies works the best for your company:

Would you like your clients stick to your brand? What about increasing your Customer Value?
You probably want them both.



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Leverage Email Marketing

Retaining customers is all about nurturing relationships. In other words, your relationship with a customer should not end after that person’s first purchase from your eCommerce site. Every now and then you have to remind your loyal customers you’re there for them. So when they need something, they’ll remember you and go to you.

Email marketing is a great tool for nurturing customer relationships. Once a customer makes the first purchase from your eCommerce store, send the person a welcome email. You may use the opportunity to upsell or cross-sell. Maybe make recommendations that go well with the product or products they bought for the very first time from your store.  

If customers have not been to your site since their last purchase, send them emails, too. The emails should serve as a reminder that you exist. Your goal should be to get them to your site again so they can make that next purchase. 

Adidas, for example, sends a “We miss you” email to buyers who have not accessed the site in a long time. And to get them to make a purchase, the shoe company offers a discount code.

The code, however, expires. The tugging at the customer’s heartstrings, the discount, and the sense of urgency created by the expiration date all make for a great formula to get customers to make that purchase again. There are other email marketing best practices you can follow, too.

Personalize

Customers are more likely to make another purchase if they feel like the company makes an effort to get to know them, and values them. This is why personalization is very important. 

Would you like your clients stick to your brand? What about increasing your Customer Value? You’re in the right place.


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When you make recommendations of products to buy based on customers’ past purchase experience, for example, you’re showing them you cared enough to know what they might need and want in the future. Besides, you’re improving customer experience because you’re providing them with only content that is relevant to them. 

eBay is an eCommerce site that does this type of personalization well. It actually even goes a step further. Instead of recommending products based solely on a customer’s purchase history, it bases its recommendations on a customer’s search history, too. That means visitors don’t have to buy something to get relevant content from the eCommerce site.

Giving the right recommendations on your eCommerce site is not the only way to personalize. You can personalize your marketing emails to customers, too. Instead of using a generic pronoun, use their first name to address them. When sending recommendations of posts to read from your blog, send the ones you think your customers might be interested in based on what they already read from your website.

Personalization is so important consumers no longer see it as a luxury. According to Smarter HQ, a whopping 80% of frequent shoppers only shop with brands that personalize the experience. And that’s a lot.

Create a Customer Loyalty Program

Customer loyalty programs are a great way to retain customers. Although customer loyalty programs can come in many forms, according to the Loyalty Programs Guide, all successful programs have the same characteristics:

  • They are easy to use.
  • They give great discounts.
  • They are easy to understand.

The simplest customer loyalty program uses a points-based system: The more frequently a customer buys from you, the more points he or she has. The points can be redeemed as a discount, as a freebie, or as another offer.

This is precisely what Evy’s Tree does to encourage more repeat orders. Points, however, are not just rewarded based on the purchases made by a customer. If an existing customer refers a friend and gets the friend to make a purchase, for instance, that customer gets corresponding points. If a customer likes Evy Tree’s Facebook page and Instagram account, that person also gets corresponding points.

With this customer loyalty program, Evy’s Tree doesn’t only get to retain customers. It also increases customers’ engagement with the brand and grows its customer base. 

Use Social Media To Your Advantage

Social media can no longer be ignored. According to Statista, as of 2020, there are 3.6 billion social media users worldwide. That number is expected to increase to almost 4.41 billion in 2025!

To succeed then, businesses, including eCommerce stores, need to have a social media presence. You don’t have to be on all the social media platforms if you don’t have enough manpower. Just choose the social media platforms where most of your customers are found. It’s better to be in a few than to be in all but be unable to maintain all of those accounts. 

Source: EyeBuyDirect

Once you’ve made your platform choice, you can start making your own posts. Make sure, though, that your posts are engaging, and that you post regularly. Since you now have a social media presence, your aim now is to get engagement rates up. That’s important to get customers (and even those who have never been your customers) to notice you. You can use a timesheet app to schedule your posts. 

Use Customer Accounts

Customer accounts can make life easier for your buyers. With customer accounts, they don’t have to spend time filling out all those relevant fields on the delivery address, the buyer’s name, and so on, to make that second purchase. All they’d need to do is log into their account that already has all that information, search for the item, put that in the cart, and then check out.

But for your buyers to use a customer account, you’d need them to create one in the first place. The key is to keep the process as simple as possible. Don’t ask unnecessary questions. Make the entire process as short as possible. Here’s how Amazon does it:

A consumer only needs to fill out four fields to create an account. The entire process can be completed in only ten seconds or even less if the consumer can type faster.

Improve Your Customer Support

Excellent customer support is key to retaining customers. If someone makes a first-time purchase from your store and has a concern about it, the person should be able to contact someone easily from your company. That means your customer support should be available at the very least during work hours on workdays. 

You should provide multiple ways for your customers to reach your support team, too. Remember, not all people love to take out that phone, dial a number, and talk. In the same manner, not everyone loves to type. So to cover all the bases, it’s best to include both a live chat option on your eCommerce site and a phone number to contact your team. You may include your customer support team’s official email address, too. 

Make sure, too, that the members of your customer support team have been briefed on how to handle complaints and answer queries. They should know your products like the palm of their hands. They should give concise and informative answers, not vague answers that don’t solve customers’ problems. When giving those answers, they shouldn’t take forever either.

Remember that customers make repeat purchases from a company only if they were satisfied with the customer experience. And that customer experience includes those interactions with your company representatives.

Bottomline

Although customer acquisition is important, customer retention is equally important for an eCommerce site to succeed. To retain customers, you need to do much more than sit and wait for them to come to you. You need to implement customer retention strategies.

There are many customer retention strategies you can use to get first-time buyers to make those repeat purchases. All of them do the same thing: They put a premium on the customers, and their needs and wants.

In other words, the key is to always think of your customers. That’s customer-centric e-commerce. If you make your customers your priority at all times, you can expect your buyers to become loyal customers you’d like them to be.

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