New technologies are dramatically reshaping a lot of industries like learning, healthcare, and, certainly, e-commerce. Innovations can help you retain your users, enhance your consumers’ experience, increase customer LTV (lifetime value), and in such a way to drive your revenue. Yet, how exactly can technology help you retain customers and achieve your business goals? We will show you this in our article.
Technology as a key strategy for improving customer retention
Why should you focus on customer retention? Do you know that repeat customers bring 3 to 7 times higher revenue per visit compared with the new clients? So, if your goal is to increase your revenue, then customer retention is the most worthy thing to invest in. Integration of such technologies as AI (Artificial Intelligence), ML (Machine Learning), Blockchain, AR (Augmented Reality), and other e-commerce software solutions can:
- Fix poor customer service;
- Make your marketing strategy efficient:
- Equip your workers with solutions and tools, making them more proactive;
- Automate routine and repetitive tasks;
- Make your business successful overall.
How technologies are improving customer retention in eCommerce
It’s a fact that the way your customers feel and think about the company impacts your business success and revenue. As the statistics show, 82% of clients have refused the brand because of poor or bad customer service and 53% of customers have changed the brand because they didn’t feel valued and appreciated. By fixing such problems, you will make your shoppers happy and loyal, and your business successful. So, let’s elaborate on how the technologies are improving customer retention and how they can help you increase revenue.
According to the statistics, 78% of customers will be more loyal to the brand in case the service is more personalized. Herewith, such an approach becomes vital for business success and differentiation of your company from others. And this is where new technologies are more than just useful.
Implementing AI, blockchain, IoT (Internet of Things), and other solutions you can process the customers’ data more accurately, deeply, and faster. The information gathered will help you better understand your clients and their pain to provide them with the following:
- The best solution to their problems, needs, requirements ever;
- Personalized product recommendations in cross-sale and upsell blocks;
- More relevant search results;
- Suggestions and emails based on the buyer’s habits and experience.
All of the above allows you to build customer retention strategies much more effective than just sending newsletters with the client’s name used. Integrating cutting-edge technologies, you can improve the service so that your clients feel more appreciated and valued and, thus, become repeat customers.
Cutting-edge technologies can help you build more efficient plans and make the right business decisions by means of predictive analytics. Today, you can use a lot of online interactive tools, software, and platforms to gather and process behavioral data that is crucial for successful customer retention.
So, implementing various plugins, software, platforms, your company can collect the following insights, data, and other critical intelligence on customer behaviors and preferences like preferred browser, purchases, payments, queries, and other details. Other AI and ML-based technologies can analyze the clients’ data fast and accurately to predict the customers’ wishes, needs, pains, and so on.
All that enables effective interactions between your organization and the customers. Herewith, modern and emerging technologies empower your workers and company for the improvement of customer retention and conversion rates.
Fraud detection and prevention
Improving customer retention includes the collection and analysis of big data. Yes, you need to store a lot of personal information about your customers. That’s why it’s crucial to think about storage security and safety. You need to take data privacy seriously while maintaining transparency about what data you collect, how you use it, and how you disclose it.
Thus, for instance, blockchain is already widely used by retailers and governments to secure and protect sensitive data. The value of technology is expected to reach $60 billion by 2024. The full potential of the solution is yet to be seen. One of the key features of the technology trend for eCommerce is that it allows you to gather customer data without exposing your users’ privacy. What’s more, clients can choose the option: to share or not their data. As you can see, there is no need to reveal the user’s identity.
Artificial Intelligence in action
AI technology has already been widely used in different ways to improve service and customer experience. Various AI-powered virtual assistance and bots are perfect for repetitive and quick tasks. Thus, implementing the technology, your e-commerce store can:
- Provide customers with more relevant product recommendations;
- Give immediate answers and information about the price, availability of the item in the warehouse;
- Count shipping costs depending on the customer location;
- Minimize the distractions that can prevent your shoppers from buying the product, and so on.
When it comes to the AI-powered chatbots, the solution can provide a human-like intelligence to keep your shoppers engaged and, thus, increase customer satisfaction. Also, it can generate more personalized newsletters, e-commerce search, etc.
Automated back-office processes
All the mentioned tools and solutions can be used for automation of the back-office processes. The new technologies are bound not to replace the human-force but empower your employees to do their job more productively and efficiently.
For example, AI-chatbots can respond to customer queries 24/7. That’s crucial when considering the fact that 90% of consumers are impatient when it comes to customer service support and are waiting for an immediate response. That task can be done by the AI-based chatbots. Another key feature is that the technology can handle multiple inquiries at once. Also, the solution can be used to do some repetitive tasks like answering standard FAQ questions in such a way to free the employees for other tasks.
The AI-powered and blockchain solutions can gather and process the sorted and unsorted clients’ data for you to build the strategy, enhance the customer experience, improve your service, and on and on.
Augmented Reality for engaging in-store experience
Due to the COVID-19 outbreak and quarantine, online sales prevail. Such technologies as AR put the purchases in online stores on to the next level. Technology has the power to enhance the customer experience and cardinally change the way people purchase products in e-commerce stores in the near future.
According to the research, 71% of shoppers have the intention to buy more frequently at the online stores with the AR feature provided, and 40% of the customers are ready to pay more in such a case. Herewith, providing your customers with the AR option, you gain a competitive advantage.
IKEA, Sephora, Lacoste, Amikasa, and other brands have already started to provide users with the AR apps to give the users the capability to overlook the product in real-time for more informed decisions to make. Now it’s your turn to be ahead of your competitors.
Herewith, today there is no need for your customers to visit the physical location to buy the product. They can use the technology to know what to expect. In such a way AR provides the customers with a much more personalized and immersive shop experience and helps you maximize your marketing efforts.
Customer retention is hard and continuous work. You need to constantly analyze your clients and their needs to improve the service, provide the best solutions, and just keep the consumers engaged. It’s impossible to keep 100% of your clients, but the integration of new technologies can dramatically increase customer retention.
The new solutions, applications, and e-commerce software integrated can help you gather and process all the data much faster and accurately that can help you build more effective customer retention strategies to retain your customer. Also, the technologies can automate the repetitive tasks to free the workers for more crucial tasks to be done and make your team more proactive. Herewith, all the technologies can help you improve the 3 key aspects of your business growth:
- A better understanding of your existing customer needs, demands, wishes;
- Great customer service;
- Customer appreciation.
Alexey Kutsenko is CMO at DDI Development company, that provides custom web & development services to worldwide clients. Alexey has vast experience in building marketing strategies for various clients, defining the client’s needs, and leading digital marketing strategies in the company.