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Driving your customer to checkout from the first glance may seem difficult, but keeping them is even harder.
A successful eCommerce business is built on customer loyalty, positive feedback and buy-in. If you want your brand to grow, it’s time to move away from acquisitions and focus on an e-commerce customer retention strategy.
Don’t just take our word for it. Studies show that only a 5% increase in retention rates can be seen. 25-95% increased profit..
However, in a competitive online environment, only 18% business leaders Keeping their focus on the customer.
(Image source: The next scoop)
Less than half of all eCommerce startups spend their monthly marketing budget on creative campaigns, social media targeting, and traffic-generating strategies. While these acquisition methods draw in one-time customers, without an effective follow-up plan, they will repeat this process over and over again.
Let’s delve into life after the feast. Stay with us as we explain why customer retention is critical to e-commerce success and how you may be neglecting your customers without realizing it.
You are focused on getting new customers
Spreading the word is important when growing your ecommerce business. Target large demographics, launch a creative campaign on social media and don’t forget about customers who have already converted.
Businesses that are too tied up in registering new leads are more likely to neglect their existing customer base. Not only Five times more expensive Research shows that acquiring a new customer is more likely than maintaining an existing one, but a loyal customer is more likely to make a repeat purchase than convert a new prospect.
“After running my own startup marketing agency, I realized that keeping and nurturing existing clients has a better ROI than onboarding new ones because you already have the human resources to allocate time to these tasks and you don’t need to start a new process,” says Yoav Vilner, CEO of Walnut.io. “Then if customers are paying you every month, they’re used to it, and you can offer more services because of the trust you’ve built. Getting the first dollar from a new customer takes a lot of time.
While acquisition efforts can increase the number of customers entering the checkout process, you must balance this with your ecommerce customer retention strategy to maximize the value of the customers you’ve already converted.
You are not dividing your customer base.
To maintain customer interest, you need to know yours Conversions post-funnel. Instead of sending the same product recommendations to every contact on the subscriber list, marketers should delve deeper into consumers’ individual needs, wants, and desires.
The key here is to delve into the data. Start segmenting your customer base into groups based on factors such as:
- Demographic age
- Geographical location
- Purchase history
- Character traits
Applying a well-designed segmentation strategy to your customer base allows for customized targeting of prospective consumers. From personalized emails offering discounts on customer-specific products to recommending location-based services and events. The company that is closest to the customer usually wins the purchase.
Etsy shows a great example of the benefits of customer segmentation. By collecting data from a consumer’s purchase history, this retailer sends personalized emails when a customer’s ‘favorite’ product is on sale.
The way you segment your customers should be unique to your particular ecommerce store. For example, if you’re a global brand, location-based segmentation might be a good place to start. However, if you’re operating on a smaller scale, you can use a segmentation strategy to target sleeper customers and frequent window shoppers.
You don’t reward customer loyalty.
Are you taking your customers for granted? Businesses that are preoccupied with increasing purchases often forget to appreciate the rest of their customers. If you fail to reward customer loyalty, the relationship will turn sour quickly, and the likelihood of repeat purchases will decrease.
Many ecommerce businesses roll out the red carpet for new customers. From special offers to frequent re-emails, many online stores pull out all the stops to get prospects across the finish line.
However, if this special treatment does not continue, the customer will feel neglected. To increase your customer appreciation, it’s important to keep in touch with your customer base and build their loyalty with discounts, personalized product deals, and refer-a-friend benefits.
Take the famous brand of bourbon Maker’s Mark As a great example of rewarding loyalty. Since introducing their ambassador program, they have pioneered an innovative retention strategy.
To share their preference for Maker’s bourbon with friends and family, customers receive a number of exciting perks, such as their own personalized bourbon barrel and a special brass plaque with their name on it.
(Image source: ABV Network)
This is an innovative way to build a loyal relationship with repeat customers. Better yet, with the promise of personalized products, the company has won more new customers than ever before, along with an amazing experience. 110,000 people Encouraged to visit the physical director.
Rewards are an easy way to increase your consumer ecommerce customer retention value while onboarding new customers in seconds.
You’re ignoring customer feedback.
Ecommerce retailers need to realize that negative feedback is a gift. If a consumer gives you feedback, they are invested enough in your product to engage with your business again.
The main thing is here Stop ignoring customer feedback And turn every comment into something positive. Feedback not only makes a brand work, it can also be the starting point for a new shopping journey for the customer. Respond to negative feedback with offers and discounts, and do everything possible to correct the mistake you made.
Taking the time to provide feedback builds a new level of trust with returning customers. If you go out of your way to improve their experience with your product, they are twice as likely to buy and recommend your service to a friend. When you are Build your websiteMake it easy for your customers to connect with your team members by adding feedback forms and opportunities to schedule call appointments.
The Shop Shop VP, Virginia Lee, says brands need to be creative in how they interact with consumer feedback. It is important to open a responsive line of communication.
We have a dedicated WeChat group for our VIP customers to keep an open line of communication. We use this group to solicit feedback as well as provide them access to shopping events, special offers and other benefits,” she commented. “The nature of our live streaming business is to make our customers feel like they’re buying from a trusted friend[of course]. Frequent communication with our audience helps build this relationship.
You continue to change your brand image.
You know that 65% of company revenue Is it from existing customers rather than new purchases? If you’re constantly changing your brand to appeal to new demographics, you risk losing your current one.
Especially with the older generation of customers, brand familiarity builds trust and encourages a loyal line of repeat purchases. If you suddenly change your logo or change your brand direction, your new brand image can scare away loyal customers.
Instead, it’s important to match your brand image with demographic trends. If you follow the natural evolution of your audience, you will find that your customer retention rate is high.
You lack the personal touch.
Creating a personal relationship with each of your consumers is worth the effort. Actually, a shocker 80% of consumers They say they are more likely to make repeat purchases if a brand offers them a personalized shopping experience.
(Image source: Starter Bonsai)
As you can see above, prioritizing your ecommerce customer retention strategy can set you on a course for more repeat purchases, positive reviews, and brand referrals.
Retention-based personalization can look like personalized birthday emails that offer personalized offers or connect directly with loyal buyers for specific feedback on how to improve your service or fix a customer service problem.
“I love getting customer service when there’s an issue,” said Swap Society CEO Nicole Robertson. “With artificial intelligence and overseas customer service, it’s my experience that people enjoy a personal touch and know I’m truly invested in their experience. We have a very low collection rate and are working hard every day to keep it that way.
Customizing the customer experience is a great way to make them feel special and stick around.
Finding a balance between acquisition and retention
As the eCommerce sector heats up, it’s important to find a positive balance between acquiring new customers and nurturing existing ones.
Casting the net for potential prospects is fun and can drive a lot of traffic to your site, because some of the best marketing comes from word of mouth.
If you grow your loyal customers, it will pay you off with positive feedback and constant referrals. Remember, your business only survives because of your customers. If you take the time to take care of your customers, they will be sure to take care of you. Ecommerce customer retention is critical to the success of your business.
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