Ecommerce is booming. But it entails a lot of aspects to survive and thrive. Among brands and businesses, the most essential part of ecommerce is retention. A digital marketing speaker Hong Kong highlights that customer retention is equally important as setting up ecommerce stores.
According to a social media agency Hong Kong, acquiring a new customer is 5 times more costly than retaining an existing customer. Besides the success rate in selling to a customer, you already have is 60 to 70 percent. That is much higher than the success rate of selling to a new customer at 5 to 20 percent.
Brands and businesses need not worry as ecommerce retention is affordable and easy. Such a bravo move also has a big potential to boost revenue. A video marketing agency Hong Kong noted that a 5% increase in customer retention can increase the company revenue by 25 to 95 percent. Below, we have listed some proven effective ecommerce retention strategies.
Automate Email Marketing
One of the most valuable ecommerce retention strategies is email marketing. They are an effective way to communicate with your existing customers and update them on what is happening with the brand or business. Run email campaigns before and after the buying journey. Send new product updates, product recommendations, special discounts, etc. to drive sales.
Build a Loyalty Program
Another important ecommerce retention strategy is a loyalty program. It is a great way to influence existing customers to stick with the brand or business. For example, you can create a point-based loyalty reward. For every purchase, a customer can get points that they can use on their next purchases. For exclusive offers to your most loyal customers with higher spendings, a VIP program can encourage them to shop more.
Harness the Power of UGC
Creating a feed for customer reviews on your website is a great way to harness UGCs as an ecommerce retention strategy. They do not only encourage customers to do business with you again. But you can make them feel valued by your brand or business. They can also encourage your prospects to patronize your products and services.
Improve Customer Experience Through 24/7 Customer Support
Modern customers have higher expectations. They want any queries resolved faster. If they need more information about a product or service, they demand it in real time. Improving customer experience through 24/7 customer support is one of the best ecommerce retention strategies. Nowadays, it is highly possible to achieve using chatbots.
Half of the purchase decisions among modern consumers are influenced by word of mouth. Incentivizing referrals can make your existing customers into advocates of your brand or business. Since people trust personal recommendations more, you are likely to boost sales and at the same time retain your existing customers.
Incentivize Repeat Purchases
A very clever ecommerce retention strategy is incentivizing repeat purchases. Offer discounts, promos, and special packages to entice your existing customers in making a continuous purchase. Today’s artificial intelligence and machine learning are clever enough to identify these opportunities you can offer to specific customer personas.
Survey Your Customers
Most of the time, brands and businesses formulate strategies that they think customers may want. But the best way to know what interests your existing customers is to conduct a survey. Ask them what they want or expect from your brand or business. It is also a way to know what is working and what needs improvement in your marketing plan. As such, you can iterate your ecommerce retention strategies based on your customers’ preferences.
THE BOTTOM LINE
It takes effort and time to put ecommerce retention strategies in place. But once you have expedited the process, you can supercharge your brand or business with a higher ROI.