online customer retention strategies
The digital revolution had radical effects on consumer behavior and purchasing patterns. Today's customers are motivated by agreements and convenience, and their expectations are growing at a dizzying pace.
The data shows that the 67% of customers say their standards for good experiences are higher than ever. further, the 80% of customers says that the experience that a company provides is as important as its products and services.
Having said that, it's hard to keep customers loyal.
Nevertheless, that does not mean that customer loyalty is dead. It means reinventing yourself for the digital age. The next decade will reward solidarity companies that customers trust.
So the question is: What can companies do to retain customers?
What is customer retention and why is it important?
Customer retention is a variety of activities designed to keep customers long-term and make them loyal buyers. The ultimate goal of customer retention is to transform first-time buyers into repeat customers and maximize their lifetime value (LTV).
The e-commerce landscape is very competitive and it is increasingly difficult to build customer loyalty. The good news is that focusing on online customer retention pays long-term dividends.:
- Increased earnings : taking care of clients and maintaining them over time will also have a positive impact on their results. Data shows that increasing customer retention by 5% you can increase profits anywhere in the 25% 95% and that existing customers provide the 65% of a company's business .
- Brand ambassadors : the best thing about loyal customers is that they tend to share their positive experiences, thus becoming its brand ambassadors. That is priceless. Consumers talk about a brand they are loyal to their family and friends. As word of mouth increases exponentially, customer retention is a must for your business.
How to calculate the customer retention rate
Customer retention rate (CRR) shows the percentage of customers that a company has retained over time.
To calculate your CRR, you must subtract the number of new customers acquired (N) of the number of clients remaining at the end of the period (E). To calculate the percentage, divide that number by the total number of customers at start (S) and multiply it by 100.
online customer retention strategies
A career has begun: the best online shopping experience is the finish line, and the reward is the most loyal customers every day.
We've compiled a list of nine proven online customer retention strategies from some of the top eCommerce brands to inspire you and show you how to apply them in your store..
Collect feedback with customer surveys
The best way to find out what customers think about your business is to ask them. Using customer surveys to collect feedback and diagnose potential dissatisfaction is an excellent starting point for understanding what needs to be corrected in your overall online experience..
Customers appreciate it when you ask for their opinion. It means you care and you're ready to go the extra mile to keep them.
Improves customer service
In this first digital world, e-commerce customer service is not a pleasant thing, but a prerequisite for success. Nevertheless, creating a customer service for the simple fact of having it is not enough. Improving customer service is an endless process.
Making sure customers can easily navigate and get answers to their questions quickly will result in happy customers staying. One of the best tactics when it comes to customer service is to offer self-service in the form of a knowledge base. , where customers can easily find answers on their own.
Communicate with your clients
Constant communication with customers through their preferred channel is the key to online customer retention.. Nowadays, there are 3.900 millions of email users worldwide, and although social networks are very popular, email remains the preferred communication tool for customers . It is also the best performing channel with a return on investment of $ 44 For each $ 1 spent.
Regardless of where you communicate with customers, it is important to be consistent and take advantage of personalization whenever possible for immediate relevance.
Take advantage of a customer loyalty program
Rewarding customers for repeat purchases over time is one of the most widely adopted customer retention tactics. In addition to the fact that it encourages customers to buy more, loyalty programs also provide invaluable insight into shopper habits and buying histories..
Having a unique approach and being considerate of your customers' wants and needs when designing your loyalty program is the secret sauce for success..
Take advantage of customization
The success of a brand depends on the ability to offer a unique and personalized shopping trip for the customer.. “the 79% of customers are willing to share relevant information about themselves in exchange for contextualized interactions in which they are immediately known and understood”.
Getting customers to create an account is a great way to learn more about them and offer them a personalized experience that encourages them to click the button. “add to cart”. Another easy way to add a sense of personalization is by using product recommendations based on customer behavior..
Offer fast delivery and easy returns
When it comes to ecommerce, delivery and returns are two of the top consumer concerns. How you manage last mile delivery can help you stand out from the competition and retain customers..
Nevertheless, there will be situations where customers want to return and replace the product. Simplifying that process will give your customers peace of mind and will also encourage them to return to your e-commerce store..
Use subscriptions to keep customers coming back
Another customer retention strategy is to use a subscription model. “the 15 percent of online shoppers have signed up for one or more subscriptions to receive products on a recurring basis”. For customers to join the idea of a subscription, consider offering something special and exclusive or a product that they will constantly use and replenish.
The journey begins
Fostering loyalty and fostering long-term relationships with customers paves the way for success, but this doesn't have to be a daunting process. As the saying goes: A journey of a thousand miles begins with a single step.
Leveraging some of the above customer retention strategies can help you transform newbies into loyal customers and maximize your LTV..
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