E-business has shown significant growth over the years with the advancements in the field of science and technology. As the use of the internet increases, online businesses are experiencing growth. Modern consumers love to buy stuff online from the comfort of their homes. If you are an online business that wants to retain more customers, you must follow below mentioned e-commerce customer retention strategies and tips to meet your sales goals and expand your business.
This blog post will talk about ECommerce customer retention and top strategies & tips to retain more customers.
What Is Customer Retention?
Customer Retention is basically how long a customer sticks or stays loyal to your products. It includes strategies and initiatives to connect your customers to make purchases repetitively. Recent studies reveal that gaining a customer retention rate of 5% can elevate your business by 25% to 95%. A company can earn more profits by valuing old customers than making new ones.
In the digital world, retaining customer retention is more important than gaining new customers. It acquires a great focus to grow your e-commerce business.
What Is Customer Retention Rate?
Customer retention rate is a metric used to calculate customer retention for your e-commerce business. You can assess the performance of your business by the rate of your customer retention. Here is the formula for calculating customer’s interest in your products:
Customer Retention Rate = ((NE – NN) /NS) * 100
Whereas,
NE = number of customers retained at the end of the period
NN = number of new customers gained during the period
NS = number of customers at the start of the period.
You can use this metric to track the growth of your online business and improve your strategies to gain customer retention, such as engaging marketing strategies and tactics, understanding and fulfilling the needs of customers, customer satisfaction, exciting and fair shop offers, attractive promotions, and proper personalized marketings to gain a loyal customer base.
Strategies and Initiatives to Gain Higher Customer Retention Rate
Customer retention rates are much higher in businesses that sell daily use products, such as grocery stores, pharmacies, or daily care products, but in industries where people don’t buy products more often, such as fashion luxuries, jewelry, and electronic devices, Lower retention rates are usually considered high.
Implement these strategies and tips to see an incline in your e-commerce business growth:
Monitor Customer’s Response Rate
Track the retention rates regularly to monitor customers’ behaviors and response rates to find the areas of improvement and customize and optimize strategies based on the data from the feedback and calculations, which influence potential buyers and satisfy customers’ needs.
Personalize user experience because these insights, such as a click, a hover, and all scrolls, matter to your business and customer retention. Collect data about users’ needs and wants through surveys and reviews and work on the customers’ requirements to meet their expectations.
Online Marketing Campaigns
Use exciting ads and attractive deals to retarget the audience who have come to your site but haven’t purchased anything. Influence them with your sale or fair price offers to bring them back to make a purchase. Ask social media influencers to promote your offers to attract their followers to buy your products.
Excellent Communicating Services
Connect to your customers through your communication channels and be active in responding to their requests using live chats, WhatsApp, phone numbers, or emails. Stay in touch with your customers to build long-lasting relationships with your clients.
Add Customer Reviews
Ask customers to leave reviews about your business or shopping experience on your social media handles or online store. You can then display reviews on your product pages or descriptions to encourage new visitors to come to your site to purchase your products.
Take Feedback from The Customers
To stick customers to your products, take input from the customers in the form of feedback or suggestions to improve further. Add value to their lives by responding to their issues and by working promptly to provide solutions to the problems they face during their online experience. It will build their trust in you and increase your eCommerce retention rate.
Reward The Customers
Offer special discounts for repetitive purchases and engage them in lucky draws to market your products. Please encourage them to participate in these competitions to win huge prizes and exclusive discounts. It will keep your customer’s interest and loyalty, and it will keep them coming back to you for their future purchases.
Enhance User Experience
A visitor should have a seamless experience during their visit to your website. They should be fine while loading your website, navigating across the pages, adding items to the cart, checking out, and making payments. Use advanced features such as auto email services to send them notifications after their purchases and online payment methods to provide ease of purchase. It will build your credibility and authenticity and make the process satisfactory for your users. Send messages to the customers to show appreciation after their purchase.
Track Ecommerce Retention Metrics Regularly
Evaluate product retention rates by adopting fundamental mechanisms of E-commerce business retention to see what’s working for your business.
Have a look at these critical components:
Purchase frequency: This metric is used to assess the growth, which shows the number of people coming to purchase your products over a particular period.
Customer Lifetime Value: Customer Lifetime value identifies or calculates the total revenue your business will generate by the single customer purchase.
CRR: CRR is the customer retention rate, which is the number of people who purchase and are loyal to your products from the start.
Overall Promotion Score: Evaluate your net promoting score by calculating the average rate at which people are promoting or recommending your products to others.
Conclusion
Brands and companies should focus on delivering quality products and exceptional user experiences by providing them with excellent services. The more you work on the users’ specifications and requirements, the more your business will expand in the market, and the more it will encourage the customers to shop again, and you will achieve your expected CRR (Customer Retention Rate) goals. In addition, specific tactics and exclusive marketing campaigns can also boost your product purchases.