6 Best eCommerce Customer Retention Strategies
eCommerce customer retention is the ability of an organization to retain customers for a long period. If an organization has high customer retention, this simply means the organization customers will continue to rebuy the same products, resubscribe to the same services or, in some other way, continue buying from that business enterprise.
Customer retention is the differentiator between firms that grow and those that don’t. The more clients you can retain and sell to, the more likely you are to meet your business objectives. Customer acquisition costs vastly outweigh customer retention costs.
Selling to a current customer, on the other hand, is 6-7 times less expensive. eCommerce customer retention is the way eCommerce enterprise motivates their customer to return to their site and make the purchase more frequently. The higher the customer retention rate of an eCommerce company, the better it is for the business organization.
Over time, the cost of acquiring the customer will decrease while the average lifetime value of the customer increases exponentially. eCommerce customer retention strategies for eCommerce enterprises are a set of activities a business organization can use to hold on to their existing customer.
eCommerce customer retention strategy also helps to increase the number of repeating customers to the eCommerce business website. In addition, these eCommerce customer retention strategies enable an organization to both, extract and offer more value to their current customer base.
eCommerce customer retention benefits
Business growth is not about a one-time sale. For an organization to continue driving growth for its business, the organization must focus on building and be maintaining authentic relationships with its existing customers to create habit-forming experiences. There are 2 reasons why customer retention is important in eCommerce
- Even if you are adding new business to your organization, you can’t grow your company if you are simultaneously losing business.
- The 2nd reason is incredibly black and white: It’s always more expensive to acquire a new customer than it is to keep your current customers and make more sales
So, why do businesses spend the majority of their money on acquiring new customers?
For many businesses, the most difficult decision is where to begin. We’ve put up a list of seven realistic customer retention methods that you can employ to keep your current customers happy and enhance your revenues in the long run.
Finding new ways to boost revenue is the number one priority for salespeople. To do so, they’ll need to sell more by digital marketing, which implies they’ll need more customers. As a result, salespeople are frequently so focused on acquiring new clients that they overlook the importance of retaining existing customers. Despite this, we continue to hear that it is less expensive to retain existing consumers than to attract new ones.
How to retain customers who are leaving
There are quite a few ways to get eCommerce customer retention right, those are
- The first step in ensuring client retention is determining which part of your customer base generates the most money. These are the 20% of consumers who bring in 80% of the revenue for your company. The second step is to give them the best purchasing experience possible.
- Customers want the same shopping experience whether they shop online or in person. Use Conversion Rate Optimization (CRO) tactics to make your online purchasing experience as pleasurable as your offline shopping experience.
- Because of the user experience that Netflix and Amazon deliver to its clients, they have been successful. In general, user experience and Customer Lifetime Value (LTV) climb and decline in lockstep. Customers will have a higher lifetime value if you provide them with a better purchasing experience. To keep your customers, don’t rely on email marketing or retargeting.
- VIPs are an excellent method to keep your clients coming back and spreading the word about your business. Early access to discounts, VIP-only discounts, exclusive events, access to unique products, and input on product development are all examples of VIP treatment. Simply put, your goal is to make your most valuable clients feel appreciated. You want them to know that you appreciate their business and give them the greatest shopping experience possible.
Why is eCommerce customer retention strategies important
eCommerce customer retention strategies are the methods through which an eCommerce enterprise can retain an eCommerce customer much more easily. Moreover, returning customers have a higher chance of conversion, which will help an eCommerce enterprise to grow online.
The importance of eCommerce customer retention strategies mainly depends on the product the eCommerce enterprise is selling as well as the frequency at which customers in the eCommerce enterprise niche are making a purchase.
For example, if you are an eCommerce enterprise that is selling clothing, you must have a higher customer retention rate compared to an eCommerce selling automobile parts. The more luxury item you sell, the lower the customer retention may be. For that, you can refer to the Pixel Plant referral marketing guide which will definitely help you boost sales.
Conversion Rate Optimization (CRO) has the advantage of allowing you to enhance your total retention rate without resorting to strategies like discounting (which cuts into your bottom line and hinders growth). CRO does a lot of the hard lifting when it comes to increasing repeat conversions and improving your ROI by assisting in the creation of a seamless, pleasurable shopping experience.
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