Customer Retention In Ecommerce 101
For any business, repeat purchases represent the most important element of overall income, with ecommerce being no exception.
Here are the reasons:
- Repeat customers cost nothing to acquire as they are already yours, as opposed to new customers that are expensive to convert.
- Second-time customers spend 20% more than first-time buyers.
- Existing customers have a conversion rate of 60-70% which is enormous when compared to first-time conversion rates, which are typically in the single-digit zone.
Read on to find out how to maximize your repeat business through solid customer retention.
A classic go-to tool for ecommerce retention is email marketing. It’s personal, effective, and can be customized to a high degree.
Building a journey for your automatic email marketing system is important, as it’ll be triggered as your customers move through your funnel and can maximize their buying potential at any given stage.
Here are some customer retention examples in the form of emails:
- Welcome Emails: When a visitor subscribes to your newsletter or makes a purchase, they’ll receive a carefully created email from your company. This email should welcome them, give some more details on the company, and offer a joining bonus or discount for future purchases.
- Upselling & Cross-Selling: Upselling refers to offering a more expensive item as an upgrade to the first, while cross-selling refers to offering complementary products for the first one customers purchased. Seeing as this email type is highly personalized and focuses on a choice your customer clearly made, it has excellent success rates.
- “We Missed You” Emails. When customers become inactive, it’s a great idea to remind them of your store and to show them your latest products.
Social Media Presence
Social media is the heart of customer engagement, and that engagement is the key to more repeat business.
There are many ways to stay in touch and get your customers involved including the following:
- Amusing posts, such as photos or videos.
- High-value posts which provide value and knowledge.
- Polls that get your customers engaged, and can allow you to learn more about them.
Also, once you have your audience in one place, you can launch competitions, open discussions, and anything else that you feel would get them interested.
Typically, ecommerce stores focus on a certain niche, and that’s what your customers have in common.
For ultimate success, try to use these tips above to create a community, rather than a collection of solitary clients.
A loyalty or rewards program creates a situation where your customer or client retention efforts can truly flourish.
For products that are purchased often, it makes total sense to buy from a place where you’re collecting points that translate into money rather than buying from different places.
Loyalty systems retain customers for various reasons:
- Customers get their share of dopamine every time they get more points.
- They get to feel that they’re part of a community.
- You’re showing your customers that you value their business - and this is probably the most important part of the whole exercise.
Make sure that this system is embedded in the technology of your website so customers can see the visual accumulation of their points in their accounts.
This will do wonders for your retention strategy.
Personalization And Customization
Whatever you do with your customers, make it personal.
Using browsing history or past purchase information will enable you to tailor ads and offers in ways that you otherwise wouldn’t be able to.
When you offer customers a product that they’re likely to be interested in, you’re increasing conversion rates tenfold and zooming in on their true needs and wants.
Customers are concerned about privacy nowadays, but the vast majority actually support the use of their information if it means getting personalized and relevant ads.
Receiving irrelevant offers wastes time and is frustrating for customers.
Other important points to consider are:
- Using first names in chatbot flows or emails
- Storing a support history to see past correspondence with customers
- Use surveys to ask customers about your products or services, to learn more about them and what is important to them
It should be clear by now that retention in ecommerce should actually be as important as new sales, or even more so.
Valuing your existing customers, engaging with them, listening to them, and personalizing their experience from A to Z is the very secret that’ll help you scale your ecommerce store to new heights.