Ecommerce customer retention: Awesome strategies to boost sale for ecommerce.

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It’s cheaper to get current customers to make a repeat purchase than to find new customers. This is true for many businesses, especially in the crowded eCommerce arena where clicks and conversions always seem to be increasing in cost. Therefore, if you don’t remarket to the current customers after-sale, now is a good time to build cohesive strategies for customer retention.

1. What is the Ecommerce customer retention?

The customer retention in marketing is the process of engaging existing customers to continue buying products and services from your business. The goal of customer retention program is help your business retain as many customers as possible. It is often through customer loyalty and brand loyalty initiatives.

Most companies traditionally spend more money on customer acquisition. Because they think that it is a quick and effective way to increase revenue. However, the customer retention often is faster. On average, the cost of customer retention is up to seven times less than customer acquisition. In addition, your business doesn’t need to attract, educate and convert new one when you sell to the existing customers.

2. The importance of customer retention for ecommerce store

ecommerce customer retention

Save money on Marketing

As we mentioned above, it costs significantly more to acquire a new customer than it does to retain an existing customer. Therefore, you should keep your old customers who are already familiar with your products and service. This help you save money and reduce your marketing expenses.

Repeat purchases from repeat customers means repeat profit.

The loyal customers will use your business regularly for purchases and tend to spend more money. They are 50% more likely to buy new products and spend 33% more than new customers. Besides, a valued customer trusts your business and believes that you provide a superior service compared to competitors. They believe that your company listens to their needs and requests. Therefore, your business pay attention to which brands, products and purchase these customers prefer. And they are more likely to make additional purchases at your business.

Free word of mouth advertising.

The word of mouth is the most cost- effective advertising you can have. It only comes from your loyal and happy customers. The repeat customers are more likely to tell their friends and family about your business and its products. In addition, they are happy to tell people about excellent service they received or product that they enjoyed.

The retained customers will provide valuable feedback

The study shows that 97% of consumers said they are more likely to become more loyal to your business if you implement their feedback. On the other hand, 55% of consumers said they are not likely to continue being a customer of your company if you ignore their feedback. Therefore, it is important that you listen their feedback. You should ask your repeat customers how your business can serve them better. This will give you new opportunities that you may have overlooked. And that lead to increase the customer retention rate and sales.

3. Customer retention strategies to boost sales

ecommerce customer retention

Build customer trust and long-term relationships.

Fostering customer trust need a strategic focus on every aspect of the user’s experience. To develop a lasting relationships, provide relevance and value at every stage of the customer journey.

  • Educate your clients on the most effective use of your product or service, both before and after purchase.
  • Deliver outstanding customer service with multiple service channels and fast, accurate responses that solve customer issues.
  • Build a frequent communication calendar on all channels.
  • Provide convenience with functions like fast shipping, free returns, and/or mobile pickup orders, like Starbucks’ Mobile Order & Pay.

Notice churning signs in advance

The most obvious way to ensure the customer retention is to prevent a customer from leaving. Firstly, you can detect the warning signals of customers. You need to identify the key variables of customer behavior such as purchase patterns, product usage and history of customer service enquiries. Then, you will analyze these signals and take action to stop your customers before they churn.

For example, you can consider how many of your customers didn’t buy anything in the last 6 months. This might be a sign of them to quit your services and take their money to your competitors. Then you can send the follow up emails to these customers and find out the reasons why they don’t purchase       and have solutions to prevent them from leaving your business.

Measure customer lifetime value

Customer lifetime value (LTV) is an estimate of the net profit attributed to your brand’s future interactions with a customer. Understanding LTV can enable you to shift from a short-term business strategy focused on next quarter’s profits to a long-term one that values ongoing customer relationships.

The simplest way to calculate customer LTV is to subtract the amount you spent acquiring and retaining a customer from the amount of revenue that a customer generates. You can also use an online calculator, such as this one from WebFX, or this more complex option.

Educate your customer by offering great content

Many people purchase products and services from companies because these businesses are willing to educate their audiences. If you consistently share amazing content, your customers will come back more. Then the customer retention of your business will increase.

Understand your customers’ problems

Even if you have the most wonderful product in the world, you may won’t sell many if you don’t know what problems it solves. More importantly, you need to know which consumers will benefit most.

What do your customers need? What keeps them up at night? Continue hitting those pain points throughout your marketing campaigns so your customers know that you understand them. Over time, they’ll become more likely to buy from you.

 Target customers with special offers

Through customer’s purchase history, you can determine what kind of offer will be the most appealing to each individual and increase. This will keep your brand on your customer’s mind.

Now you need to identify ways to revive their interest and convert it into on actual purchase. You can do it by offering daily deal or additional value for your product and make them feel that you care and haven’t forgotten about them.

Reward your most profitable (VIP) customers

You can list your accounts of customers which are your most profitable. These are your key accounts, let’s call them the VIPs. Then you can use number of incentives to reward your VIPs to increase their loyalty and customer retention rate

Customer retention doesn’t improve overnight. However, if you have a few solid strategies up your sleeve, you can coax your existing customers back for more.

Survey your customer base

How good do you think your clients service is? think about what this kind of information could do to support you enhance the user experience. It doesn’t need to be a huge number of questions either. You could simply ask your shoppers a single question on a pop-up when they log into their account.

You could require your clients how they like your new fall collection—or really anything you think would offer valuable insights for your brand. This will support you tailor the shopping experience  have with your brand. Improve upon it and shoppers are bound to stick around longer.

Be Personal

You’re gathering lots of data on your shoppers, so use this data to enhance their experience. Besides, before reaching out to a shoppers you should know how they like to be contacted, what they have purchase previously, and what previous interactions looked like. Your clients don’t want to feel like just another number, and they will become frustrated if they have to repeat the same information over and over. By providing a personalized experience they will feel like a part of your team and associate your company with a smooth and easy experience.


Now that you know how to improve  your customer retention rate, you can put a plan in place to improve your customer experience. Besides, If you’re interested in building an awesome ecommerce  website based on Magento 2, you can book a free consultation with our experts to explore our Magento Development Packages. Together we can build with a business model and roadmap that match your requirements

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