7 Ways To Retain Your Customers and Boost Retention

What is Customer Retention?

Customer retention is the ability of a business to keep its customers over a specified period. High customer retention means customers of the business tend to return to, continue to buy or in some other way not defect to another product, company, or non-use entirely.

In terms of measurement, customer retention is a metric that measures customer loyalty or the ability of an organization to keep its customers over time.

What does Customer Retention mean for e-commerce businesses?

Customer retention is crucial to a business's success and lasting sustainability. When done right, it can also increase a company's profits.

The key to high customer retention is determining what's causing customers to leave and then employing strategies to build a loyal group of buyers who will buy more often and make more significant purchases. By discovering what delights and motivates your most loyal customers, you can then attempt to replicate it.

Customer retention is a business's ability to keep existing customers and continue to generate revenue from them. Companies use different tactics to convert first-time buyers into repeat shoppers.

Think of customer retention as a process where a business aims to convince existing customers to keep purchasing their products or services. Since a customer has already made a purchase, it's different from lead generation, which involves capturing the contact information of businesses or individuals who are likely to buy a product or service.

What are essential metrics for Customer Retention?

Some essential metrics for measuring customer retention are as follows:

Attrition Rate

The attrition rate is the number of customers a company loses in a specific time frame relative to its existing customer base. To calculate the attrition rate, take the number of customers your business lost by the end of a specified period and divide it by the total number of customers at the beginning.

Repeat Customer Rate

The repeat customer rate measures the chances an existing customer will make more than one purchase. To calculate your repeat customer rate, take the number of customers who made more than one purchase and divide it by the total number of unique customers.

Customer Retention Rate

To calculate the customer retention rate, determine the number of customers you acquired over a specific period. Subtract that figure from the total number of customers at the end of that period. Then you divide this number by the number of customers you had at the beginning of the period.

7 Strategies to Increase Your E-Commerce Store's Customer Retention Rates

1. Build Trust

Creating an easily relatable brand is the first step to building trust with your customers. Having something in common fosters trust, which is the key to building a solid relationship and, by extension, a successful business.

Use your customer data to find out more about your customers' needs and provide them with a positive experience. Let it also guide you on how to communicate with them so that you earn their trust. When customers trust you, you don't have to convince them to buy your product.

Research has shown that 82% of customers will continue using your brand if they trust it, and 83% of customers who trust your brand will recommend it to others.

2. Customer Loyalty Programs

Do not take customers for granted; businesses have to reward loyal customers with appreciative programs. Loyalty programs are fantastic ways to reward customers while attracting newcomers to your business. A loyalty program can be as simple as offering a discount on subsequent purchases or a free item attached to new purchases.

Thoughtful gestures go a long way. In addition to discounts and offers, think of things that will make your customers feel good about using your product. A thank you note, or any positive acknowledgement can keep your customers returning.

Treat your customers well, and they will respond accordingly. But nothing works better than exceptional customer service.

3. An Effective Customer Support - Feedback and Support

It's hard to improve your business if you don't know how your customers feel about it. As Bill Gates said in one of his books, 'Business @ the Speed of Thought,' "Your most unhappy customers are your greatest source of learning." Getting feedback from customers is very crucial to how you run your business. So you must listen to them and take their feedback to heart. Make it easy for customers to reach out to you and listen to them. Also, make sure you implement suggestions that make sense as soon as possible. You can get customer feedback through surveys, focus groups, social media, etc.

It is also essential to provide adequate support when they require it. Your social media platforms should be accessible enough for your Customer to reach you with their concerns.

4. Improve and Optimize Your Online Store

Another great asset to retaining customers is a user-friendly website. Keep your UX neat, clean, clutter-free, and easy to use, and see how they keep coming back for more. Vibrant communication that speaks the language of the user, customer service that puts the user above all else, and an interface that makes life easier for the user are some things that go towards a great user experience. Work on them to build stickiness. Your designs should also pop and make you stand out from other similar brands. Your customers simply liking your brand because of its excellent design and how easy it is to use will go a long way in customer retention.

5. Personalized Email Strategy - Retention and Onboarding

When a customer completes a purchase journey, it is essential as a business to always welcome them. Some experts even recommend sending welcome messages at the first interaction point before purchase. That is how vital this idea is.

Your customers have a dime a dozen competing businesses to choose from, but they chose you, which needs to be appreciated. Sending 'thank you' messages shows that you value your relationship. You can also use the opportunity to inform them of your other products and services and provide a discount code for their next purchase.

People often say 'out of sight, out of mind,' so don't let your customers forget about you even when they are not doing business. Reach out to them on their birthdays, anniversaries, or significant life milestones.

6. Create/Encourage a Subscription Model

Successful long-term customer retention for many businesses has been through a subscription model. This can guarantee a steady revenue stream and allow companies to showcase new or exclusive products. Savvy consumers are moving away from single-use products – and so are intelligent eCommerce businesses.

Subscription-based business models are first and foremost about customer service. A subscription-based business that excels at nurturing and deepening customer relationships is one that effortlessly grows its customer base.

7. Improve Your Checkout Experience

Payment experience is a big deal when it comes to customer retention. If your customers find it difficult to make payments at checkout on your platform, it is not likely that they will return or refer your business to other people. If your customers want to keep shopping with you, your website needs a fast and convenient checkout process. Partnering with a secure and reliable infrastructure partner to provide a simplified payment experience for your customers is a surefire way to retain them.

The Bottom Line

Customers are the foundation of any business. Without them, eCommerce businesses will not be successful. It is essential that after using resources to acquire customers, you invest in customer retention. It can achieve this by ensuring customers can make fast payments seamlessly for purchased goods.

How Thepeer Can Help…

Thepeer provides businesses with an easy-to-integrate infrastructure way for their customers to make transfers, fund their accounts, and make payments across multiple wallets on the same platform - without any hidden fees. Our products can help businesses provide seamless payment solutions for their customers.

Our checkout product allows customers to pay for goods and services on your site with their wallets from other platforms integrated with Thepeer. You can gain access to Thepeer's checkout via the integration of our easy-to-use Checkout API, which allows your customers to start making payments seamlessly.

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