As an eCommerce brand, increasing customer retention should be one of your top goals. The top 1% of customers spend 30 times more than the average customers.
It costs around five times more to acquire a new customer than it does to retain an existing one. So, by enhancing the customer experience and increasing customer loyalty, you can cut costs and maximize your profits.
Returning customers tend to spend more money per order than new customers, which can further boost your profits. The extra money that you save can be reinvested into product innovation or paid marketing.
How to Increase Your Customer Retention as an eCommerce Brand
When you provide a great experience for your customers, you’ll find it easier to build a trusting audience that continue to support your brand for years to come.
On average, the customer retention rate for e-commerce brands is around 30%. Follow our three top tips below to improve your customer retention rates to above the average.
1. Focus on improving UX
UX refers to user experience, which is the experience that your customers have with your brand when using your website. By improving your UX, you can leave a lasting impression on your customers and encourage them to shop at your brand in the future.
Use Magento upgrade services to enhance your existing platform or switch to a new website host to make the customer experience as great as it can be. Make sure your platform is quick to load and easy to navigate to prevent your visitors from getting frustrated when browsing through your products.
Consider adding different features to your platforms, such as product filters and search bars, so your customers can easily find their desired products on your website.
2. Improve your SOPs
Your Standard Operating Procedures (SPOs) ensure your orders are fulfilled within a timely manner. Creating a great set of SOPs means your employees know exactly what steps to take when a new order comes in, so they can send out the correct products to your customers.
Great SOPs will transform your eCommerce business. They prevent errors or delays in the fulfillment process, which could otherwise decrease customer satisfaction and damage your reputation. If the wrong orders are sent to customers, it will increase your return rates and cost you more money per order.
When you fulfill customer orders correctly and on time, you can boost your customer satisfaction and loyalty, and maximize the success of your eCommerce brand.
3. Offer a Loyalty Program to Your Customers
People enjoy saving money or getting free products. Offering a loyalty program to your existing customers is a great way to keep them coming back for more.
You can offer incentives and rewards to the customers who spent the most money or those who leave positive reviews for your products. Great incentives include free gifts, free next day delivery, or exclusive discounts.