Why customer retention is so important in eCommerce businesses

Generating new leads for your eCommerce business might be your focus, but retaining the customers you already have is just as important. Once a customer has made a purchase from you, they're familiar with your brand and your products and are well-primed to make another purchase - but only if you get it right.

Why retention matters

With existing customers, you have an entire database you can market to who know your brand and have already shown an interest in your products. Businesses usually spend a lot of time and energy focusing on those who haven't yet made a purchase, but according to research conducted by Monetate, 48% of all eCommerce transactions are from repeat customers. There's so much value there if you only choose to look.

If you can direct your marketing efforts towards encouraging repeat customers, you'll find that new customers will be drawn to your site without any effort at all - that's the power of word-of-mouth. Customers who buy more than one item from you already hold your business in high esteem, so they're more likely to tell their friends about it too, especially if you give them a memorable purchasing experience.

Personalizing their experience

And that's where personalization comes in. A Yieldify report found that 75% of consumers want to buy from brands that offer personalized digital experiences. So, the more personal you can get, the better, and now that you have some great data from your existing customers, make sure you use it! What did they buy last time? What do you have to offer that might complement that item? Get it in front of them and you might just have another sale on your hands!

You can also personalize an existing customer's experience by sending them a unique discount code that they can share with a friend. You can mention that you hope they love their new product and encourage them to use the discount to give a friend the opportunity to purchase one too.

Asking for feedback

With the ability to share across social media, you can reach even more potential customers than ever before - not with more ad spend, but with more attention to customer retention best practices, such as asking for feedback and taking it on board in a real way.

Even if a customer isn't 100% happy with your product, this is a fantastic learning opportunity for you and your business. Ask for feedback on how you could improve your product or process to encourage customers to purchase again or to refer a friend. Constantly striving for growth and improving your customer's buying experience will only lead to good things for your eCommerce business.

As you can see, your existing client database is extremely valuable, so making customer retention a key part of your e-commerce marketing strategy is essential. If you want to ensure you're making the most out of every customer, come and have a chat with us. We know all the ins and outs of successfully marketing an e-commerce business and we're keen to pass on our wisdom to help you grow!