For any business, whether online or offline, the bottom line is revenue generation that leads to higher ROI. And e-commerce is no different. Thus, to achieve that objective, people chase to acquire customers and are more focused on that activity. However, it has been observed that while acquiring new customers, businesses often neglect servicing the existing customers, and as a result, customer attrition or churn rate becomes high.
Why are we telling you this? Because studies have found that efforts in retaining customers create a stable and sustainable business model and it fetches much higher ROI. Consider the following facts for instance:
- Companies that can retain 5% of their customers on an ongoing basis reap as high as 25% return on investment.
- Further, the profitability increases by 25% to 95% in certain cases.
- The cost to retain a customer is one-sixth of the customer acquisition cost.
- 70% of the revenue generated is through repeat buying from just 8% of loyal customers.
All the above factors show a fact that customers are willing to stay if businesses are ready to evolve and provide them value.
With the changing dynamics of the way business transactions take place in today’s world, e-tailers must adapt to the changing demands of the customers. And, therefore, e-commerce companies will have to focus on providing a seamless customer experience that is personalized and feels natural to them.
Below we share some strategies that will ensure that customers stay loyal to your e-commerce business brand and buy often as well.
1. Customer Experience
Without a doubt, customers today are not only looking for a good shopping experience, but more often they are expecting a better customer experience.
A shopping experience is a one-time phenomenon that happens while the customer is buying a product. No doubt, it is important for companies to provide a good shopping experience. Nevertheless, customers are more likely to remember a brand and become advocates of those companies that provide a seamless experience even before and after the buying event takes place.
2. Acknowledge the First-time Buyers With an Offer
Whenever a customer buys your product for the first time, send them a thank you email. This acknowledges the fact that you care. Further, a thank you email also acknowledges the establishment of the business relationship between the company and the customer.
While this is a very good starting point of communication, you can further seal this customer relationship with an offer to buy more. Offer them a discount coupon to encourage a second-time purchase. Customers will also find it useful if the offer is extended for a second purchase on ancillary accessories related to their first purchase.
3. Reward the Loyal Customers
If you understand the value of customer loyalty, you will understand how rare it is. With businesses and competitors booming at every nook and corner, it is easy for your customers to go away. Therefore, when customers stay with you and repeatedly buy your products, they need to be acknowledged and rewarded for doing so.
Giving them special discounts and exclusive offers only for loyal customers will make them feel special. This can boost your sales revenue as well.
Another way to reward your customers for staying with you is by giving them exclusive privileges such as exclusive early or extended access to the sale.
4. Personalized Messages
With so many competitors around, it is easy for your customers to forget you as a brand. For customers who had purchased your product once and did not come back again, sending them a personalized message can bring them back to your active customer base. This often can be the differentiating factor between you and your competitors.
5. Return Policies
Return policies play a very crucial role in customer retention. Sometimes, customers will buy only if the company has a return policy in place. It makes them feel safe to purchase and try a product since they have the confidence that if they do not like it, they may return the product.
As an e-tailer, you should simplify your return policy. If possible, offer free return shipping. This will not only make the customers stay but also increase your customer base.
6. Interactive Delivery System
Set in place a modern and streamlined delivery system. Empower your customers by availing them of the facility to track their orders during transit. This way, they know exactly where the goods are, and when they will be delivered. It only shows that the business values the customers’ time, money, and convenience.
7. Instant Customer Support
This has taken a whole new avatar of personalization. An e-commerce business needs to support its customers, but only those will win which makes customer support a hassle-free, easily accessible, and personalized experience.
With the digital channels at disposition, customers not only want a faster response, but they also like it through the medium they are comfortable with. Use chatbots, social media messengers, and instant messaging apps to stay connected with your customers 24/7.
Wrap Up
While acquiring new customers is a worthy pursuit for any business, it is even more important to service and retain existing customers. Efforts in customer retention also result in your customers becoming your brand fans and brand advocates. Thus, their recommendations bring in new customers too. With the right customer retention approach and strategy, your e-commerce business model will become profitable and sustainable.