why customer retention matters
eCommerce Growth, eCommerce Growth Tips

Why customer retention matters – eCommerce Growth Tips Ep. 5

Most eCommerce companies are wasting an enormous amount of money on advertising. 

We have a better way.

In this episode, you’ll learn why Customer Retention matters and how it can help you diminish your advertising costs and get the most value out of your customers.

  • (00:00) – Intro
  • (00:30) – Why focusing only on getting new customers is wrong
  • (00:49) – What average agencies do
  • (01:43) – How an eCommerce grows
  • (02:00) – What drives repetitive Sales
  • (02:44) – How an eCommerce really grows

Why focusing only on getting new customers is wrong

Few eCommerce companies understand the power of customer retention and the lifetime value of their customers, so they keep advertising to acquire new customers that never come back.

I think this is a waste of money. Here’s the reality

Average agencies get the budget and run their campaigns to acquire new customers and frustrate existing customers. They ask you about the products, about the margin and the cost per conversion, and then they run the campaigns and they’re really good at it. You’re adjusting here and there. You see orders appear and you initially think this is all good. But there’s one thing that doesn’t happen. The company’s profit is not increasing.

You’re familiar with this, right? You know how it feels. It’s frustrating! You try to optimize the cost, but eventually, you decide it’s just the way it is. It doesn’t have to be this way.

Here’s the problem. These agencies have started Facebook and Google Ads and they know what they are doing with their CPCs, reach and cost per conversion. They are good at it, but they don’t understand how an eCommerce grows.

An eCommerce grows thanks to the retention of the newly acquired customers. These agencies are well intended, but they don’t have the whole picture. They have the assumption that your e-commerce grows only thanks to new customer acquisition. 

What drives repetitive sales?

Think about a store where you buy over and over again. Have you decided to buy again from them thanks to their repeated events, thanks to their prices? Maybe. But what made you buy again from them?

It’s the habit you formed and you formed that habit thanks to the overall customer experience, products, prices, experience, emotions – positive emotions. That transforms the customer into a repetitive customer and the repetitive customer into a promoter.

It’s about customer retention. That makes big companies thrive!

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



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How an eCommerce really grows

If you’re going to understand customer retention and craft an outstanding customer journey, you’re going to be amazed about how much your business can grow.

Marketing shouldn’t be a rip-off. Growth means retention. Customer experience leads to retention.


Stay tuned for our next eCommerce Growth Tips video next week where we learn more about the ultimate eCommerce growth formula!

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