It has been said and shown several times that rather than recruiting new consumers, it is far more cost-effective to obtain repeat purchases from existing ones. This is because consumers already familiar with the brand have seen how big of an impact your product can make in their life. Furthermore, returning customers tend to spend more money, develop a habit of buying more frequently than usual, and can occasionally be observed chanting your praises while suggesting your brand to their friends and relatives.
So, stick with us for a little while if you want to know more about customer retention for eCommerce.
What is Customer Retention?
Customer retention is defined as a company’s ability to keep recurring customers and boost lifetime profitability. So, when it comes to establishing a solid customer retention strategy, the first thing that comes to mind is keeping a relationship and how you watch out for them when they have a question about your product. Another consideration is how you add value to their lives by assisting them in achieving their goals when they purchase your goods.
Many examples can be considered when it comes to customer retention strategy, but the most effective one is creating a customer loyalty program.
So, jumping onto the question:
Why is customer retention so important?
As previously said, focusing solely on customer retention is critical since maintaining your clients is far less expensive than attracting new consumers. If you think about it rationally, you won’t have to waste money and valuable time looking for new consumers instead of focusing on existing ones and keeping them pleased.
Because of the value, you have offered them with your products and services, existing consumers are more loyal and spend more money. Referrals are another advantage of client retention. Customers that are pleased with your product or service will tell their friends and relatives about it.
What do you sell?
Not many people think about it, but what you offer greatly influences how much care you have to provide for client retention. For example, a great client retention plan will come in handy if you have a product that is often purchased. However, if it’s the other way around, that doesn’t mean your customer retention approach is pointless. On the contrary, it continues to have an influence and is really beneficial.
How to boost your customer retention?
Client satisfaction is equally important for customer retention. So, for example, if you make a mistake and end up rectifying it, your customer’s happiness tends to skyrocket, even if you didn’t cause the error in the first place. People must recognize that a complaint that has been actively handled can result in loyal and repeat clients.
Now, let’s talk about some of the technical aspects of how they play a major role in the process of customer retention. For example, your eCommerce brand needs live chat support available 24/7. It is essential. This turns your customer question into a sale and a complaint into a quick resolution.
The next thing that works wonders is sending a gift to your customers. Yes, it sounds a bit too much, but it not only makes your customers feel like they’re important to you. It is a surprise for them and a reminder that they must return to your store. However, you have to make it clear before sending in a gift. It has to be based on the law of reciprocity.
Moving on to idea number four, which is Emails. Emails are feared among many startups as they tend to think it’s not very pleasant for the customers. To be quite fair, in some ways, this is right. However, constant emails get unpleasant, so we suggest you send only a few emails monthly, and your email should add value. Take note: even if you send a few emails monthly, it can be unpleasant if there’s no value to them. If this strategy is not followed correctly, it can also make you lose some of the most loyal customers.
Discounts are somewhat controversial because these can also lead to your customers always expecting discounts from you. However, when it comes to offering a discount to a new customer, it can be quite beneficial. For example, giving your first-time customer a solid 10% or 20% off can result in a repeat customer. Markhor Wear offers up to 40% discount with a 5% additional discount on this holiday season.
Measuring RCR (Repeat Customer Rate)
In the end, after you’re done with all of these strategies, you want to figure out if they are functioning properly or not. At the end of it all, it is crucial to measure if your customer retention is flourishing or not.
Lastly, you have to focus entirely on customer value. Customer value has to be your primary aim in order to achieve healthy customer retention in eCommerce. It helps tremendously in measuring how much value each of your customers holds.
So, there you have it. You now know everything you need to know to keep or get new devoted consumers. Keep in mind, though, that your present customer rate is the best you have. It is your responsibility to keep them loyal, and you must perform admirably in order to keep the firm thriving. Existing clients are less expensive and generate more revenue for you because they are already familiar with your brand. They appreciate the value and benefit you provide them with your product and service, and they can also be valuable resources in bringing you, new customers.
Remember, building a meaningful relationship with your customer is the most effective strategy that boosts your business and takes it to new heights.
So, everything you need to know about customer retention is given above. Use these strategies wisely to gain a better experience in learning how eCommerce works and how it can work in your favor and make you profit tremendously.