{"id":60,"date":"2019-09-27T13:34:44","date_gmt":"2019-09-27T13:34:44","guid":{"rendered":"https:\/\/www.123formbuilder.com\/blog\/customer-retention-ecommerce"},"modified":"2022-12-08T11:34:10","modified_gmt":"2022-12-08T11:34:10","slug":"customer-retention-ecommerce","status":"publish","type":"post","link":"https:\/\/www.123formbuilder.com\/blog\/customer-retention-ecommerce\/","title":{"rendered":"The Best Guide on How to Improve Customer Retention in Ecommerce"},"content":{"rendered":"

I have said it before, and I will repeat it: I am the biggest, nerdiest, most passionate eCommerce consumer in history. Naturally, I always lean towards eShops that know how to increase customer retention, especially for customers like me, who buy everything online and will return, with stars in their eyes and a credit card ready to spend more. Again, and again.\u00a0<\/span><\/p>\n

What makes me – and the other millions of people who shop online – return to the same stores?\u00a0<\/span><\/p>\n

Like with everything business-related, there\u2019s no given recipe. However, the right combination of factors can make your customers more loyal. Like I am with the stores I go back to every time I need (read: want) something.\u00a0<\/span><\/p>\n

Create Forms that Retain Customers <\/a><\/div>\n

Why Improve Customer Retention in eCommerce?<\/span><\/h2>\n

There are a million ways to answer this question – but they all lead to the same answer: you have to improve customer retention online.\u00a0<\/span><\/p>\n

If we have to narrow it all down, there are about two main ways you can answer it:\u00a0<\/span><\/p>\n

The Ethical Perspective\u00a0<\/b><\/h3>\n

It makes sense to want to offer more to those who have the potential to buy from your store continually. After all, you want to show them you are grateful – and you should be. Every new purchase from every customer (new or recurrent) is a step forward for your company and a small victory against your competition.\u00a0<\/span><\/p>\n

Yes, gratefulness goes a long way. So it makes all the sense in the world to show it to your customers.\u00a0<\/span><\/p>\n

The Numerical Perspective\u00a0<\/b><\/h3>\n

Let\u2019s say gratefulness isn\u2019t much when it comes to making an actual business case for retention. In a world of numbers and cash flying in and out of your company\u2019s bank account, it also makes sense to follow the money trace.\u00a0<\/span><\/p>\n

Does it pay off to increase client retention?<\/span><\/p>\n

Absolutely.\u00a0<\/span><\/p>\n

Think of it this way: in 2018, the total global market size in the eCommerce industry measured a staggering $2.8 trillion. Moreover, the great news about it is that the entire number is projected to skyrocket to $4.9 trillion by 2021.\u00a0<\/span><\/p>\n

\"graphical<\/p>\n

Source: <\/b>The Global Ecommerce Playbook<\/b><\/a><\/h4>\n

That\u2019s a mountain of opportunity right there. Sure, you might not be able to tap into everything – but even if you target a tiny slice of this whole eCommerce cake, it\u2019s still going to be quite significant. Also, if you do it correctly, things will only continue to grow from thereon.\u00a0<\/span><\/p>\n

What does this have to do with eCommerce retention?\u00a0<\/span><\/p>\n

Studies show that there is a 60-70% chance for a <\/span>recurrent customer<\/span><\/a> to buy from you, while only 5-20% of the new customers are likely to buy from you. The value of a repeat, loyal customer will continuously pile up as there will be less investment and more ROI every time they decide to come back to you.\u00a0<\/span><\/p>\n

Loyal Customers Are One Form Away <\/a><\/div>\n

It\u2019s like a Perpetuum mobile – customers will bounce back to you, again and again, generating buzz in the process (and as such, making money for your business).\u00a0<\/span><\/p>\n

Let\u2019s use a specific example to make this point. If let\u2019s say, you invest $1 for every new customer and only 10 of 100 buy a product worth $5, which means you will have spent $100 and got a $50 ROI. If, however, 6 of the ten newly acquired customers would buy from you again, you will already add $30 more to your ROI. Moreover, if they buy a third time, and if 1 of them recommends you to their peers, your investment will start to be profitable.\u00a0<\/span><\/p>\n

Non-returning customers might seem like less work – after all, there are more than <\/span>4.3 billion internet users<\/span><\/a> out there, and you can tackle plenty of them, right?\u00a0<\/span><\/p>\n

Wrong.\u00a0<\/span><\/p>\n

Not investing in customer retention means losing opportunity – and that is never a good business strategy.\u00a0<\/span><\/p>\n

Improving customer retention as an eCommerce owner makes sense no matter how you look at it. Read our full Customer Service Statistics Case Study<\/a>.<\/span><\/p>\n

Top 15 Tips to Improve Customer Retention<\/span><\/h2>\n

There are many things you can do to retain customers – and creativity is more than welcomed in the process as well.<\/span><\/p>\n

Some examples include:\u00a0<\/span><\/p>\n

Don\u2019t Be Afraid of Email Marketing\u00a0<\/span><\/h3>\n

Contrary to what some may believe, email marketing works. It works very well – studies show that email marketing ROI is staggering: 3800%. Both B2B and B2C companies use it as well, so regardless of what you are selling, you are bound to find email marketing to be quite helpful.\u00a0<\/span><\/p>\n

Keep in mind that not all emails sent by eCommerce companies are retention emails. Some campaigns are meant to bring back users that have fallen out of the funnel before becoming actual customers.\u00a0<\/span><\/p>\n

Work on Your Brand\u00a0<\/span><\/h3>\n

One of the best ways to improve customer retention is to create a brand they can always associate their values with.\u00a0\u00a0<\/span><\/p>\n

Branding is not in any way a new tactic. It has been used since forever – look at Apple or Coca-Cola, and you will realize how people associate these brands with specific values.\u00a0<\/span><\/p>\n

For instance, you will always associate Coca-Cola with dinner parties, fun times, friends, and Christmas:\u00a0<\/span><\/p>\n

When people recognize your brand, they are much more likely to come back to you. This rule stands just as right in a brick and mortar store as it does in an eShop.\u00a0<\/span><\/p>\n

Invest in Social Media\u00a0<\/span><\/h3>\n

Social media can be an excellent ally in the race for attracting and retaining customers.\u00a0<\/span><\/p>\n

However, it is not enough to post regularly. You have to create campaigns that catch your target audience\u2019s attention.\u00a0<\/span><\/p>\n

Like it or not, this might mean you will have to invest in social media ads as well. Do make sure you think things through when it comes to these campaigns:\u00a0<\/span><\/p>\n