Any real ecommerce seller knows that every customer touchpoint is an opportunity to build rapport and increase retention of your customer base. Without the ability to meet customers face-to-face, ecommerce businesses must communicate with their actions and brand in order to create loyalty in today’s competitive landscape. Here are four customer retention tactics every ecommerce brand should be using!
At SnapShip, we specialize in high-growth ecommerce brands who have seen success by maximizing their brand visibility at every step in the buyer’s journey. Whether you are notifying your customers of order completion, shipment arrival, or even triaging an incorrect order, your brand image should be up front and center at every touchpoint. You can even push your customers towards different products on your site during the buyer’s journey with the help of a branded tracking page. If you are proud of your brand and the service level you provide, increasing exposure to an existing customer is a great way to build rapport and ultimately, customer retention.
You may think simplifying the returns process would lead to more returns to deal with, but a marginal uptick is more than worth it to retain a profitable customer! Transparency around the returns process helps alleviate any anxiety that the customer may have with buying your products online for the first time. If a customer feels at ease during their entire shopping experience, it is increasingly likely that they will be a repeat customer! Beyond the cost of a lost sale, one must take into consideration; shipping costs, product inspection cost, and the opportunity cost of wasted time. But handling returns is not the primary function of your warehouse or operations, so having an efficient returns process can save your business serious cash and create goodwill with customers who may have had a poor customer experience.
Your business’ unique customer retention strategy is how you will maximize the profitability of your customers. Each brand has different milestones and revenue targets, so knowing what your profitable customers look like and modeling your targets accordingly is a great place to start. There will be several strategies put in place to increase retention, but we have seen successful digitally native brands focus on these important KPI’s below. These metrics highlight the most important aspects of customer retention; who is buying, how frequently they are shopping, and how much they are spending.
Brands have been offering rewards programs for years, but they have mostly died out with the exception of some extremely popular programs. Profitable customers should still be rewarded, but ecommerce brands have gotten creative with exclusivity programs that double as targeted marketing to their current customer base. Holding exclusive VIP events is a great way to reward your best customers and promote your brand. With the addition of a unique hashtag, every picture from the event posted on social media can be leveraged as effective user-generated content, which converts at a much higher rate than brand-generated content.
Customer retention is all about finding your most profitable customers and developing a customer retention strategy to scale the rest of your customer base to that level. There are many pieces to a solid retention plan, but focusing on the customer experience and your brand’s visibility will put you on the path to success.
I would love to hear what you think, feel free to reach out directly at Matt@SnapShip.it!