Winning Ecommerce Customer Retention Strategies

ecommerce Customer Retention Strategies

Winning Ecommerce Customer Retention Strategies

Winning Ecommerce Customer Retention Strategies

Many business owners think that attracting new customers is the most important thing for their businesses, but if your goal is not just to earn money, then you should focus on customer retention with utmost priority. Because loyal customers not only establish the brand as a strong entity but also act as loyal brand advocates.

In this blog, we will talk about the definition of e-commerce customer retention, why it is so important, some key metrics to learn about the customer retention rate and some proven customer retention strategies that will help build a satisfied client base and drive business growth.

What is Ecommerce Customer Retention?

Simply put, e-commerce customer retention means a set of strategies that help e-commerce businesses make their customers come back second, third, or even twentieth time. These strategies work as a virtual ‘please visit again’ sign that encourages existing customers to make repeated purchases from one e-commerce entity.

According to industry reports, if the average percentage of customer retention is 31% to 38%, it counts as healthy business growth. However, depending on the nature of a business’s products or services, this percentage varies. For example, in groceries or beauty products, repeated purchases are common. However luxury fashion or electronics do not have repeated purchases, and for these businesses, a lower retention rate can still be healthy for the growth of a business.

Why is customer retention important in Ecommerce?

The importance of customer retention in an e-commerce business is immense.  New customer acquisition is great but converting the existing customers can reduce your cost and increase your ROI on ad spend.

It also boosts your customers’ loyalty. You can also have a whole picture of the quality of your service as repeat customers are the testimony to your product or service excellence. They will also promote word-of-mouth marketing. If you are getting customers more often, chances are high that they will recommend your brand to their family, friends, and colleagues which is one of the most powerful and effective marketing strategies.

As a bonus, customer retention will allow you to focus on business growth because then you do not have to spend on attracting new customers more often.

Key metrics that will give you an idea of your customer retention rate

As we now know, why customer retention is so important, you need to grow a habit of evaluating your customer retention rate, so that you can measure your business growth, your service quality, and in which areas you need to improve.

Here are some essential metrics that you need to track –

  • Customer Retention Rate (CRR) – This metric shows you the number of customers who are with you over a particular period compared to your business starting number.
  • Purchase Frequency – This metric will give you an idea of how frequently your customers are making purchases. This means how many times they are coming back to you for purchasing.
  • Average Order Value (AOV) – It will help you track customer behavior and loyalty by indicating the average money they spent for each purchase.
  • Customer Lifetime Value (CLTV) – This metric quantifies the total revenue that a business can reasonably expect from a single customer account.

These metrics offer authentic insights to your business growth, and help you determine which action is working for you and what is not. It will help you discover lots of opportunities for the development of your business.


E-commerce customer retention strategies

  • Create a personalized shopping experience:

The most important step to customer retention is to collect their data and create a personalized shopping experience for them. 44% of shoppers said that they will be likely to become repeat customers if they get a personalized shopping experience. So, you need to leverage customer data and offer them a personalized shopping experience.

But remember that personalization does not mean including the customer’s name on the email list. You need to consider their every virtual interaction, click, and scrolling to gather valuable information about your customer. All these insights will contribute to shaping a unique e-commerce journey. By using these data, you can make your customers feel acknowledged and valued which will lead them to revisit your online shop.



  • Offer loyalty program:

Encourage your loyal customers by offering them a promo code, discounts, or a one-day flash sale. This is a magical hack to get them hooked to your new products or want to return to purchase more.

You can send them an acknowledgment note saying – ‘Thank you for being there from the very beginning.’ Then offer discounts, coupons, or exclusive flash sales. You can also personalize mystery offers so that they feel valued and prioritized.


  • Customer Support:

Make sure your customers experience great positivity throughout their purchasing journey. You need to provide quality product or service, no matter what. Make them feel that you are there to listen to their every feedback and their feedback has utmost importance to you. By collecting feedback, you can even win back your unsatisfied customers as well if you offer fast and helpful customer support.


  • Post Purchase Experience:

Add offers to your thank you page. It will turn your new customers into repeat customers. When a new customer buys from you and gets an offer, there is a good chance, they will buy again. According to market analysis, a thank you page offers a boost in net revenue by 10-15%. So, it is a good retention technique that each e-commerce owner should try at least once.


You can also send your customers an exclusive user’s guide on a particular range of products that they kept checking but did not buy. This will be a great chance to make them remember of the products they did not buy.


You can also encourage your customers to post unboxing videos so that they find them memorable, and it will keep them motivated to buy more from you.


  • Retargeting and Email marketing:

Retargeting is a clever way to connect with the customers who visited your website but did not make a purchase. It will help push their memory about the items they viewed or liked. Utilizing cookies or pixel tags, you can track these items and display ads for those same products on various websites your customers visit.


On the other hand, email marketing is delivering the right message to the right person at the right time. Make your email stand out by making it relevant and sincere. Craft a message that does not look like a promotional one. Automated email platforms can help you categorize your customers based on their purchase behaviors.



  •  Harness the power of social proof and UGC content:

The most common examples of social proof are customers’ reviews and ratings. Encourage your customers to provide reviews or ratings, display them as proof of your product’s credibility, and authenticity by posting those on your product pages, and display them as testimony to your potential customers so that they know the true quality of your products.


UGC means any type of content created by the users, be it images, blogs, or videos. You can display the user-generated content to your website which will build a sense of authenticity and trust, and drive conversions in the long run.


  • Content Marketing and Engagement:

Content marketing is very essential to draw new customers and retain old ones. Generate interesting and educational material that appeals to your target group. Share informative blogs, videos, and social media postings that emphasize your products’ advantages, answer your customer questions, and provide helpful tips. You will be able to build a long-lasting relationship with clients and increase the probability of purchasing from your e-commerce site by portraying your brand as an influential industrial entity.


  • Build a virtual community:  

Social media is a strong tool to build a community. You can simply boost your customer retention by creating a Facebook group. Driving your customers to a group where they can connect with you, ask you questions, or get help from support, is a great way to keep them engaged with your brand.


Customer retention in e-commerce is not a complicated matter. You can easily retain your customers by leveraging the ways mentioned above. Keep learning and flourishing. This mindset will take you to the peak of success.






Recent Post

Get Newsletter

The Latest on Intensdigital, in Your Inbox!