Customer Retention Strategies To Boost Revenue For eCommerce Websites
When you build an eCommerce brand, your prime focus lies on acquiring more & more customers in order to create a successful venture for yourself. However, after a certain period, apart from converting the new customers, it also becomes crucial to retain the old ones, which is even more essential for a stronger position hold in the market. Unlike first-time buyers, repeat customers are more familiar with your products and services and have a clear idea of what they want from your eCommerce websites.
It becomes fundamental for businesses to introduce practices that engage repeat customers, which further leads to improvement in average order value, purchase frequency and business reach. Your repeat customers work like your unofficial, unpaid brand ambassadors who recommend your business to others and help you grow even faster. Hence, it becomes essential to invest your time and money to improve the customer retention rate. Refer to this image to understand how you can calculate the customer retention rate of your eCommerce website.
After learning how to measure customer retention, let’s look at how it can be improved. Below you can find some actionable customer retention rate strategies that you can practice for your business.
- Offer exciting bonuses and perks
You love exciting offers, we love exciting offers, and just like you and we, everyone loves them. The first strategy you can introduce for customer retention is providing them with special offers or perks. Track down the list of buyers who have done maximum shopping and offer them personalized perks or gifts as a token of appreciation. Receiving benefits or offers will delight your customers and persuade them to cement the bond with your brand and remain consistent for future purchases. You can also introduce incentives and referral programs to retain your customers and indirectly promote your business.
- Measuring metrics through customer lifetime value (CLV)
The Customer Lifetime Value (CLV) is one of the most important metrics to measure when running an eCommerce store. It provides a business with a clear view of its long-term financial viability. This metric is useful to identify early signs of attrition and target customers that can contribute to future growth.Lifetime Value = Average value of sale x Number Of Transactions x Retention Time Period Customer Lifetime Value = Lifetime value x Profit Margin
When you measure CLV, the best approach is to focus on your most profitable customers. In most cases, your customers spend more money on your products and services than new customers. By increasing your spending on your most valuable customers, you can maintain long-lasting relationships and overall enhance the profits of your eCommerce website.
- Implement SMS Marketing to improve customer retention
Businesses that interact with their customers regularly are more likely to succeed in customer retention. SMS Marketing is still an effective tool as most people open and read the messages, which leads to the enhancement of customer engagement. You can use SMS marketing to communicate with your customers regarding upcoming offers, discounts, and flash sale notifications which is a cheaper option to have consistent interaction with your customers.
- Email Marketing
You think email marketing is dead. Think Again? One of the most crucial elements of customer retention is engagement, which is also offered by Email Marketing. Through emails, businesses can deliver personalized and relevant content to their specific group of customers and develop a healthy relationship with them. Organizations can send emails regarding blog posts, case studies, podcasts, webinars, active offers, and many more that can help customers to deep dive into knowing the brand.
- Get clever with using your social media platforms.
There is much more to social media than just a digital marketing platform for your business. It can be considered for retaining your customers and helping you extract the most without spending much of the dollars you have reserved for your marketing budget. Today, you can find a larger proportion of people active on social media platforms to connect with the world. You can use this medium to develop personal and genuine interactions with people on another side of the screen. The best part of using social media for customer retention is that it lets you explore the real and uncluttered parts of your customers, beyond spreadsheets. When customers respond to your business, you get to form an emotional connection with your brand, which is the hallmark of splendid communication.
- Impeccable customer support
Lastly, no matter what business you serve, it all comes down to good customer service, which is an evergreen customer retention strategy. Business spends a large chunk of money on acquiring new customers, and hence, it becomes essential to keep the customers happy with excellent customer service. Dealing with customer issues and complaints and providing them with reliable solutions is a good practice to leave a positive experience in the minds of your customer. It will be a fine approach for businesses to have a dedicated team of customer support executives as per the size of their operations to resolve issues promptly.
In the year 2023, eCommerce brands emphasizing customer retention will surely succeed in their respective industries. Building a brand on a foundation of nurturing relationships with customers increases profitability, brand awareness, and a loyal customer base. By following the above-mentioned strategies or a few of them, there is a high level of chance you can bring visible improvements in your customer retention rate.
Written by Sarvika Technologies
Sarvika Tech is a team of young, energetic, and technology-loving people on the journey to help companies achieve their goals by supporting their IT needs. In a nutshell, we are a people’s company where the priority is their knowledge enhancement and career development. We believe that focusing on our most important asset, the team, will enable us to push boundaries and deliver ingenious IT solutions.