7 Smart Ecommerce Customer Retention Strategies

Posted 2 years ago by Filip Halak

The ecommerce industry has been growing rapidly. Thanks to桂no-code ecommerce platforms like 붚죕쳔 making it桂simpler for桂brands to桂take their business online, consumers today are spoilt for桂choice!

While that may open doors to桂many new business opportunities, it桂also means that there will be桂much more competition for桂consumer attention. It桂is桂becoming more expensive for桂brands to桂drive traffic to桂their online stores, let alone convert online shoppers into 낌넵끅넨늡낼깎곶끅�윽깎껨껸곶삣깜깎끅끅 of桂the桂deals and桂discounts offered.

As桂a桂result, most ecommerce businesses are refocusing on桂customer retention. Increasing customer retention by桂5%桂has a桂high chance of桂 because consumers are already aware of桂your brand value.

In桂this article, we桂will look into seven highly effective customer retention strategies that you can implement immediately. Let�셲 dive in!

What Is桂Customer Retention in桂Ecommerce?

Customer retention is桂the桂process of桂re-engaging customers in桂order to桂increase repurchases of桂an桂ecommerce business�셲 products and桂boost revenue. The objective is桂also to桂build a桂loyal customer base and桂meet customers�� evolving needs by桂leveraging data from previous interactions and桂purchases.

Why Is桂Customer Retention Important for桂Ecommerce?

Prioritizing customer retention and桂striving to桂provide a桂valuable customer experience has the桂following advantages:

Higher Average Order Value

Average order value (AOV) refers to桂calculating the桂average amount a桂customer spends while making a桂purchase from your store.

One may ask what the桂correlation is桂between the桂average order value and桂customer 곶깎넨깎꾈넨쓩늡꾈�봶깎깜깜, when a桂customer values and桂trusts your brand, they are more likely to桂repeat their purchases when they visit your site. And the桂longer this cycle continues, the桂higher your retention rates will be.

Understanding and桂evaluating your company�셲 sets the桂benchmark for桂consumer behavior and桂helps you in桂selecting appropriate pricing strategies to桂reduce attrition.

The average value of桂US桂online shopping orders is桂generally higher on桂desktop than mobile devices (Source: )

Increased Profits

Once you have a桂loyal customer base, upselling or桂cross-selling products becomes a桂breeze because your existing customers are very likely to桂purchase and桂try out new products from your store. After all, it桂is桂obvious that they trust the桂quality of桂your products over your competitors.

Fun fact: returning customers are known to桂. Therefore, higher customer satisfaction means recurring revenue and桂increased profits over time.

More Word of桂Mouth

One of桂the桂cheapest and桂most powerful marketing strategies is桂word of桂mouth. Your customers are actually your number one influencers.

People trust people. So桂when your customers are happy with your products, they share it桂with their friends and桂family or桂publish product reviews online for桂the桂world to桂see. It桂is桂free, powerful, and桂the桂best way to桂keep and桂attract high-intent customers.

People are much more likely to桂purchase a桂product with great customer reviews

More Cost-Effective

Inflation has, of桂course, increased the桂cost per click for桂paid search ads while the桂conversions have dropped. Customer acquisition (attracting new customers) is桂now than retaining existing customers.

Staying in桂business with existing customers by桂personalizing their experience, understanding their needs, and桂providing outstanding customer service, is桂cheaper than onboarding new customers.

How Do桂You Calculate Retention Rate, and桂What Is桂the桂Average?

The formula to桂calculate your customer retention rate is桂very simple. First, divide the桂total number of桂customers from new customers by桂the桂acquired number of桂customers at桂the桂start of桂the桂period. Here�셲 what it桂should look like:

Customer retention rate =桂(Total no. of桂customers at桂the桂end of桂the桂period桂�� No. of桂new customers acquired) /桂No. of桂customers at桂the桂start of桂the桂period

The customer retention rate , but the桂tech giants like Amazon have managed to桂score close to桂90%, given its renowned popularity.

The primary benefit of桂ecommerce is桂its advantage over other industries to桂shape offerings digitally and桂adapt to桂trends quickly桂�� saving customers�� time, offering easy purchasing, and桂retaining buyer interest.

Average customer retention by桂industry (Source: )

7桂Smart Strategies for桂Ecommerce Customer Retention

While there is桂not only one way of桂approaching customer retention in桂ecommerce桂�봶e桂recommend looking into the桂following strategies:

Set up桂a桂Gamified Loyalty Program

We桂all know that games are super addicting. Even more so桂when we桂can win customer credits or桂discounts on桂our favorite brands and桂products. And your customers feel the桂same way.

Gamified loyalty programs in桂ecommerce keep your customers engaged and桂make an桂otherwise dull shopping experience thrilling and桂rewarding. You attract higher engagement, site visits, and桂repeated purchases by桂hosting loyalty-based games on桂your online stores or桂social media.

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Brands that gamify their loyalty programs as桂part of桂their customer engagement strategies , with a桂47% rise in桂engagement. These numbers are a桂sign that it桂may be桂time to桂embrace the桂gamification of桂loyalty programs.

Some excellent gamified loyalty programs you could offer are spin-to-win games, scratch-to-win programs, setting up桂VIP credit programs with rewards for桂crossing each milestone, seasonal challenges, quizzes, and桂many more.

For example, Starbucks has a桂structured rewards program, and桂its members can win exclusive prizes by桂playing games:

If桂you�셱e selling online with 붚죕쳔 by桂Lightspeed, you can gamify your marketing with apps from the桂붚죕쳔 App Market, such as桂Scratch &桂Win Promotions or桂Discount Spin Wheel of桂Fortune.

Make Communication Easy for桂Customer Support

One of桂the桂main reasons for桂high customer churn rates is桂not offering high-quality customer support. Successful brands prioritize the桂customer experience and桂provide customer-centric support.

Imagine this: a桂customer purchases a桂laptop from your store and桂requires immediate assistance regarding the桂device�셲 charging capability. Who do桂they turn to?

Considering the桂urgency, an桂email is桂not the桂ideal communication channel. Instead, they might place a桂phone call for桂a桂quick resolution.

Therefore, to桂make communication seamless, you must set up桂omnichannel customer service around various touchpoints. An桂omnichannel platform makes it桂easier for桂your customer to桂find you and桂get their queries answered in桂their preferred channel, whether that�셲 through emails, phone calls, social media, or桂messaging apps.

Customer retention rate with and桂without omnichannel customer service (Source: )

In桂the桂case of桂complex products such as桂software, expensive hardware, or桂items that require a桂walkthrough for桂set up, is桂a桂perfect remedy to桂satisfy customers by桂understanding their concerns and桂offering seamless support 24/7桂with a桂personalized human touch.

Check out for桂your 붚죕쳔 store.

Personalize Communication Across All Channels

Your customers might not be桂from just a桂single demographic, such as桂an桂age group, location, or桂gender. Even if桂they are, every customer�셲 interests will always differ from the桂next. So, if桂you�셱e sending out generic sales messages with zero personalization, your customers will lose interest in桂your business sooner than you realize.

It桂is桂critical in桂ecommerce to桂allow your customers to桂identify with and桂relate to桂your brand so桂that they will continue to桂do桂business with you. Providing individualized communication and桂customer experiences is桂a桂guaranteed method to桂keep customers happy and桂loyal.

Here�셲 how you can include personalized communication across every channel:

For emails, send that do桂not just stop after addressing them by桂their names. Offer product recommendations by桂analyzing their purchase history, or桂send customized offers for桂their birthdays or桂anniversaries.
Offer innovative services, such as桂try-and-buy services on桂apparel or桂accessories, provide consultations, etc.
Target customers with abandoned carts and桂provide customized offers to桂close the桂sale by桂sending coupon codes over SMS or桂email.

Saw a桂customer eyeing a桂product? Here�셲 an桂example of桂an桂ecommerce store sending personalized reminders and桂a桂discount code for桂the桂browsed items that are now back in桂stock:

Ruggable reminds customers about deals on桂items in桂their carts

If桂you sell online with 붚죕쳔 by桂Lightspeed, you can send personalized offers with automated marketing emails and桂ecommerce newsletters.

Implement a桂Customer Feedback Loop

How would you make your offerings customer-centric if桂you don�셳 know what your customers think about your business? A桂customer feedback loop allows you to桂put yourself in桂your customers�� shoes.

Customer feedback is桂the桂core of桂retention and桂portrays transparency. It桂gives you a桂clear picture of桂whether your customers will continue purchasing from your store or桂not.

And you should not limit such feedback to桂chasing product reviews. Let your customers share their shopping experiences and桂be桂open to桂suggestions.

The most effective ways to桂obtain customer feedback are by桂using surveys like CSAT (customer satisfaction) scores and桂NPS (net promoter scores), asking for桂product reviews on桂your site, and桂requesting to桂share shopping experiences. Or, if桂you have a桂call center, you can request customer feedback at桂the桂end of桂each conversation.

Your customer feedback loops do桂not end after receiving them. To桂ensure there�셲 appropriate action taken, you need to桂share it桂with your teams.

For instance, feedback obtained after phone conversations can help train your support agents better. And feedback received on桂specific products can be桂shared with the桂development team to桂highlight product flaws and桂minimize errors.

Discover all the桂ways to桂 in桂our Help Center.

Create a桂Community and桂Become a桂Lifestyle

The dictionary defines a桂community as桂a桂unified group of桂like-minded individuals who trust each other and桂are on桂a桂similar mission. This applies to桂building online communities for桂marketing as桂well.

The community approach to桂shopping encourages your customers to桂return to桂your store. Individuals who relate to桂your mission are more likely to桂be桂a桂part of桂your community for桂years to桂come. Your products will eventually become a桂part of桂their lifestyles. explains how creating a桂strong community can help you improve your average order value.

Do桂you know what else is桂great about an桂online community? Your community members become influencers, talking about your business and桂promoting it桂on桂social media, resulting in桂a桂larger audience interested in桂checking out your items.

For example, Gymshark has an桂online community known as桂the桂혫Gymshark family.혬 The community lets its customers showcase Gymshark�셲 fitness products on桂its website and桂social media, be桂a桂part of桂fitness events, get exclusive access to桂offers, and桂more. It�셲 really awesome!

You can build a桂community by桂introducing customers to桂a桂branded hashtag that allows them to桂share their experiences on桂social media. Alternatively, you could ask them to桂join an桂exclusive group on桂social platforms like Facebook, or桂messaging apps like WhatsApp or桂Telegram, where they can connect and桂be桂notified of桂exclusive benefits.

Create Valuable Content

Although promoting your product to桂ensure a桂consistent revenue stream is桂essential, too much of桂it桂is桂not good. Start creating valuable, informational content to桂avoid going overboard on桂promotional content, such as桂product recommendations, discounts, etc.

The trick is桂to桂have the桂right mix of桂promotional and桂informational content to桂attract and桂educate customers about their purchases without seeming too pushy.

Here are a桂few content ideas for桂inspiration:

Create a桂free lookbook if桂your store sells fashion apparel and桂accessories. A桂curated lookbook gives users an桂idea of桂product-pairing and桂styling outfits.
Blogs help portray your brand as桂an桂expert in桂the桂field. Create a桂blog for桂your website and桂curate posts based on桂your targeted customers�� interests. For instance, if桂your store sells plants, you could create a桂blog around the桂best indoor plants and桂top tips to桂care for桂them.
Send newsletters around trending topics relevant to桂your store and桂your customers.
Offer access to桂premium content, like videos, interviews, etc., by桂professionals in桂a桂related industry, such as桂fashion or桂interior designers.

Myntra, for桂instance, has an桂exclusive 혫studio혬 with a桂variety of桂content for桂customers looking for桂some fashion inspiration:

Showcase Your Brand Story

With in-store shopping, you�셱e more likely to桂bump into the桂owner or桂the桂manager and桂have a桂small conversation if桂you�셱e a桂regular customer. The familiarity and桂friendliness would push you to桂visit the桂store more often.

However, with online shopping, customers have lost the桂human connection and桂perceive brands as桂being 젬끓늡넨-삣곶쓩국깎꾈.니 To桂avoid falling prey to桂such a桂scenario, you can create emotional connections with your customers even online. These types of桂connections encourage customers to桂purchase from your brand as桂it桂shows that there are real, relatable people behind it.

You can highlight your brand story (behind the桂scenes of桂the桂what, why, and桂who), talk about your values, and桂add your struggles and桂mission through an桂about us桂page.

An桂example of桂the桂혫About Us혬 page by桂Allbirds

Alternatively, you can create a桂series of桂videos with similar content to桂share on桂your product pages, social media profiles, or桂even in桂your emails. This format is桂also much more engaging than a桂static block of桂text.

The Bottom Line

Customer satisfaction is桂the桂key to桂retention. And the桂only way you can satisfy your customers is桂by桂listening to桂them. Communicate with your customers, offer them individualized experiences, make it桂easy for桂them to桂reach you, and桂get to桂know them better with each sale.

Remember that retention strategies need to桂go桂beyond giving one-size-fits-all discounts. The above strategies will help you turn your first-time buyers into long-lasting customers.

Once implemented, ensure you continually monitor responses to桂these strategies and桂optimize them for桂the桂best engagement.

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About The Author

Filip Halek is a content writer based in Bratislava, Slovakia. He�셲 dedicated to creating compelling messaging for the next generation of business communication tools.

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