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Tips To Attain High Customer Retention Rate For Your eCommerce Website

Published on 13 April 18
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Tips To Attain High Customer Retention Rate For Your eCommerce Website - Image 1

It can be simple lose in the chronic battle of customer acquisition. Towards the very top of the funnel for more traffic coming to the website seems like the clear means to grow the business.


However, according to the Adobe Digital Index Report, returning customers constitute 40 percent of earnings while representing only 8 percent of traffic. This tells us there's a massive opportunity to increase customer retention rates further to support earnings growth. You should improve your eCommerce user experience to gain more customers to your site.


It is a worthy investment. The high growth retailers have wholesome customer retention rates. In the best cases, customers are returning sometimes every year that helps to validate the expense of acquisition.


To validate the significance of investing in customer retention, but where should you begin?


According to eCommerce Expert Richard Lazazzera, there are seven main strategies that companies should use in order to achieve high customer retention rates:

  1. Utilize customer accounts

  2. Implement a customer loyalty system

  3. Send regular customer newsletter emails

  4. Surprise and delight your customers

  5. Reach out and connect on social media, and post often

  6. Offer a discount or credit to return

  7. Implement right place, right product, right time emails


Why would a customer come back?


Setting the scene is essential. Ignore your existing website for the moment and spend time thinking about it from the customer's perspective. The eCommerce website cost can be one time but the cost to acquire a customer is continuous and high. Regardless of your e-commerce vertical, a customer Will reunite if two things are right:


You reliably fulfill their needs (Customer Expertise)

They think of you in some time when they need. (Engagement)


This formula may feel a bit oversimplified, but it is useful to remind us that client retention strategies are not just about marketing. We are building the relationships with customers and they have to be able to trust our ability to fix their issues.


Looking first at the client experience and their requirements, when they arrive on your website, they already have the requirement or need. If we're lucky, this might be a demand for a very particular solution, or, if we're not, they have a more general problem which requires research and discovery. In both scenarios, a merchant's responsibility is to guide them during their journey, instruct them about the offering and give them the trust to enter into a relationship. Aside from that, the best thing to do is to stay out of the way by providing as frictionless an adventure as you can!


To achieve this, your focus must be on developing a high excellent User Experience (UX). This is a broad area that is fundamental to the design of the website so is not something which I will cover in this report. To summarise the website with a fantastic user experience will provide timely, precise and organized information as well as clear, prioritized and simple to use navigation and activity components.


It is imperative for every business to have a website. The more professional your website is, the more advantages you can gain.Having a website can build better relationships with your customers. You must consult good eCommerce website development company when you’re looking for the eCommerce website.


Along with providing a very low friction design, we need to give the customer assurance that we're trustworthy. There are lots of facets to the experience that may help here.


Moving on to the next requirement that was a customer considering this brand in a time of a new need, there are indirect and direct methods of supporting this. On the other hand, the other means of encouraging customer engagement shouldn't forget. Providing ways for customers to actively participate with the new by giving user-generated content features such as reviews will strengthen the bond.


The timing of reaching out to the users is more difficult to reach with email, but that could at least handled by customer segmentation that we'll talk about soon.


How do you identify what is wrong?


It can be hard to discover customer experience issues once we are expert website users, but it's far from hopeless. It takes us to stay humble rather than supposing that we understand everything. We should be open-minded, reflective, and empathetic to potential problems that people may have. Looking with fresh eyes can be easier once you have recent knowledge.


Second, there are some excellent free resources to educate yourself on user experience fundamentals. My favorite is the Baymard Institute, who are the undisputed experts in e-commerce UX using a wealth of study and studies which help us to understand better how clients interact with various pages and particular page components.


Finally, as part of any strategy, pick upon some KPIs to monitor the efficacy of the plan. I'd expect there to be KPIs for every area implemented and overall KPIs. At a top level, these KPIs would include comparing the principal KPIs of the variety of sessions, orders and therefore conversion rate between returning and new customers. I would also recommend tracking the customer lifetime value and hopefully, this will increase which will justify additional investment in acquisition! Then watch the growth cycle persist!


finally not on the list, Your current customer is the best asset your store has. They already know your brand, they know your products and they know your service. Focusing your time and energy on this group as opposed to always trying to find new customers can be a powerful way to supercharge revenues for your store, especially over the holiday season.



Tips To Attain High Customer Retention Rate For Your eCommerce Website - Image 1



It can be simple lose in the chronic battle of customer acquisition. Towards the very top of the funnel for more traffic coming to the website seems like the clear means to grow the business.


However, according to the Adobe Digital Index Report, returning customers constitute 40 percent of earnings while representing only 8 percent of traffic. This tells us there's a massive opportunity to increase customer retention rates further to support earnings growth. You should improve your eCommerce user experience to gain more customers to your site.

It is a worthy investment. The high growth retailers have wholesome customer retention rates. In the best cases, customers are returning sometimes every year that helps to validate the expense of acquisition.

To validate the significance of investing in customer retention, but where should you begin?

According to eCommerce Expert Richard Lazazzera, there are seven main strategies that companies should use in order to achieve high customer retention rates:

  1. Utilize customer accounts

  2. Implement a customer loyalty system

  3. Send regular customer newsletter emails

  4. Surprise and delight your customers

  5. Reach out and connect on social media, and post often

  6. Offer a discount or credit to return

  7. Implement right place, right product, right time emails


Why would a customer come back?

Setting the scene is essential. Ignore your existing website for the moment and spend time thinking about it from the customer's perspective. The eCommerce website cost can be one time but the cost to acquire a customer is continuous and high. Regardless of your e-commerce vertical, a customer Will reunite if two things are right:

You reliably fulfill their needs (Customer Expertise)

They think of you in some time when they need. (Engagement)

This formula may feel a bit oversimplified, but it is useful to remind us that client retention strategies are not just about marketing. We are building the relationships with customers and they have to be able to trust our ability to fix their issues.

Looking first at the client experience and their requirements, when they arrive on your website, they already have the requirement or need. If we're lucky, this might be a demand for a very particular solution, or, if we're not, they have a more general problem which requires research and discovery. In both scenarios, a merchant's responsibility is to guide them during their journey, instruct them about the offering and give them the trust to enter into a relationship. Aside from that, the best thing to do is to stay out of the way by providing as frictionless an adventure as you can!

To achieve this, your focus must be on developing a high excellent User Experience (UX). This is a broad area that is fundamental to the design of the website so is not something which I will cover in this report. To summarise the website with a fantastic user experience will provide timely, precise and organized information as well as clear, prioritized and simple to use navigation and activity components.

It is imperative for every business to have a website. The more professional your website is, the more advantages you can gain.Having a website can build better relationships with your customers. You must consult good eCommerce website development company when you’re looking for the eCommerce website.

Along with providing a very low friction design, we need to give the customer assurance that we're trustworthy. There are lots of facets to the experience that may help here.

Moving on to the next requirement that was a customer considering this brand in a time of a new need, there are indirect and direct methods of supporting this. On the other hand, the other means of encouraging customer engagement shouldn't forget. Providing ways for customers to actively participate with the new by giving user-generated content features such as reviews will strengthen the bond.

The timing of reaching out to the users is more difficult to reach with email, but that could at least handled by customer segmentation that we'll talk about soon.

How do you identify what is wrong?

It can be hard to discover customer experience issues once we are expert website users, but it's far from hopeless. It takes us to stay humble rather than supposing that we understand everything. We should be open-minded, reflective, and empathetic to potential problems that people may have. Looking with fresh eyes can be easier once you have recent knowledge.

Second, there are some excellent free resources to educate yourself on user experience fundamentals. My favorite is the Baymard Institute, who are the undisputed experts in e-commerce UX using a wealth of study and studies which help us to understand better how clients interact with various pages and particular page components.

Finally, as part of any strategy, pick upon some KPIs to monitor the efficacy of the plan. I'd expect there to be KPIs for every area implemented and overall KPIs. At a top level, these KPIs would include comparing the principal KPIs of the variety of sessions, orders and therefore conversion rate between returning and new customers. I would also recommend tracking the customer lifetime value and hopefully, this will increase which will justify additional investment in acquisition! Then watch the growth cycle persist!

finally not on the list, Your current customer is the best asset your store has. They already know your brand, they know your products and they know your service. Focusing your time and energy on this group as opposed to always trying to find new customers can be a powerful way to supercharge revenues for your store, especially over the holiday season.

This blog is listed under E-Commerce Community

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