eCommerce Customer Retention: Best Strategies

Written by Web Hosting Expert

Reviewed by Technical Editor

Updated July 25, 2024
eCommerce Customer Retention: Best Strategies

Keeping old customers instead of finding new ones has proven to be quite profitable.

A retention rate of 5% could increase your profits by 25% to 95%.

So, having loyal customers does pay off!

Let's have a look at how you can get them.

What Is Customer Retention in eCommerce?


Customer retention is the ability of a company to keep its customers over time.

Retaining a customer means that you've successfully convinced the customer to keep buying and doing business with you.

A high retention rate shows that customers are loyal and consistently choose your products or services.

How Valuable Is Customer Loyalty and Retention?


Retaining customers through exceptional service is crucial for any business.

Loyal customers significantly boost business success and are less likely to switch to competitors.

Suffice it to say customer loyalty and retention can do wonders for your business, and they definitely are worth the try!

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Customer Retention in the Ecommerce Industry: How Is It Done?


Create a superior customer experience

User engagement and customer satisfaction increase when customers have a great experience.

Always be honest—promise only what you can deliver and inform customers if something is unavailable.

You can go on to enhance the customer experience with simple, appealing designs, handwritten notes, and free shipping for orders over a certain amount.

These personal touches improve relationships, especially with personalized messages after purchases.

Auto-renewal is a must

Auto-renewal simplifies continued business and ensures uninterrupted service.

  • Ensure the auto-renewal process is quick and easy.

  • Emphasize that auto-renewal prevents business interruptions.

  • Offer long-term options with better rates to encourage retention.

  • Provide bigger referral bonuses to motivate customers to refer others

Prioritize customer service

Prioritize customer service

When customers experience your support, they feel part of the community, making them more likely to choose your brand.

Automated messages on your site are essential.

Phone calls can be productive for checking in and offering help.

Personalized emails encourage customers to share their experiences and recommendations, potentially leading to positive online reviews.

For non-tech-savvy customers, always offer understandable solutions in a friendly, non-condescending tone.

Solve problems that haven't been recognized yet

Besides your main products and services, offer additional solutions to help customers.

Provide services that address overlooked issues, like site maintenance, marketing strategy expertise, service updates, backups, and new security features.

You can also handle some tasks for customers by partnering with third parties, such as printing ads or providing promotional materials.

This positions you as a problem-solver and expands your network through collaborations with other companies.

Have a shipment tracking option

This boosts your credibility and builds customer trust, which is essential for loyalty.

Offering shipment tracking reassures customers that you will deliver as promised.

With over 24% of customers likely to return to a business offering tracking, this option can greatly benefit you.

Create a seamless omnichannel experience

Customers expect consistency across all touchpoints, whether they're browsing your website, using your mobile app, or visiting your physical store.

  • Integrate online and offline experiences: Ensure that customers can seamlessly switch between different channels without any disruption.

  • Consistent branding and messaging: Maintain uniformity in your brand's look, feel, and tone across all platforms.

  • Unified customer profiles: Use technology to keep track of customer interactions and preferences across all channels to personalize their experience effectively.

Provide gift cards

Offering gift cards provides a solution for future needs, such as birthdays or personal purchases.

Around 59% of customers spend more than the gift card's value, leading to extra sales.

This approach not only solves a common problem but also attracts new business from gift card recipients.

Provide gift cards

Utilize data analytics

Leverage data to understand customer behavior and preferences, which can help tailor your offerings and improve satisfaction.

  • Group your customers based on their purchasing behavior, preferences, and demographics to deliver targeted marketing campaigns.

  • Use historical data to predict future trends and customer needs, allowing you to proactively address them.

  • Utilize data-driven insights to offer personalized product recommendations, increasing the likelihood of repeat purchases.

Offer loyalty programs

Most loyalty programs offer purchase points that can be redeemed for discounts or other products — the more customers buy, the greater the discounts they receive.

Loyalty programs encourage repeat business and customer referrals.

Customers are more likely to try your business if referred by someone else and if they receive bonuses for their continued patronage.

Engage through social media

Social media is a powerful tool for building a community and engaging with your customers on a personal level.

  • Regularly post engaging content, respond to comments, and address customer queries promptly.

  • Run exclusive promotions and contests to keep your audience engaged and incentivize them to return.

  • Collaborate with influencers to reach a broader audience and build credibility through trusted voices in your industry.

How Customer Retention Works for Web Hosting Providers


Web Hosting Providers

Ensure customers know you offer dedicated support, even when you're unavailable.

For example, if you partner with Verpex, you can extend their customer service to your customers.

If a customer has trouble with a domain transfer and you can't help, you can refer them to Verpex, ensuring they always have support and solutions for potential issues.

Verpex's retention strategies include free backups, migrations, and SSL, addressing issues customers might overlook when choosing a provider.

We also offer 24/7 support via Live Chat, support tickets, and phone support for the UK and US.

These are great features that go a long way in getting customers to stay with Verpex.

How to Measure and Analyze Customer Retention Metrics


Understanding and tracking customer retention metrics is essential for assessing the effectiveness of your retention strategies and identifying areas for improvement.

Here’s a breakdown of key metrics to measure and analyze:

MetricDefinitionFormulaUsage
Customer Retention Rate (CRR)The percentage of customers who continue to do business with you over a specific period.(Customers at End of Period - New Customers Acquired / Customers at Start of Period) - 100Indicates overall success in retaining customers over time.
Customer Churn RateThe percentage of customers lost over a specific period.(Customers Lost / Total Customers at Start of Period) — 100Helps identify how many customers are leaving and assess the effectiveness of retention efforts.
Repeat Purchase RateThe percentage of customers who make more than one purchase.(Repeat Customers / Total Customers) — 100Measures customer loyalty and satisfaction.
Customer Lifetime Value (CLV)The total revenue expected from a customer over their entire relationship with your business.Average Purchase Value x Average Purchase Frequency x Customer LifespanHelps determine the long-term value of retaining a customer versus acquiring a new one.
Net Promoter Score (NPS)A measure of customer satisfaction and likelihood to recommend your business.Survey asking customers to rate on a scale of 0-10 how likely they are to recommend your business.Indicates customer satisfaction and potential for word-of-mouth referrals.
Customer Satisfaction Score (CSAT)A measure of customer satisfaction with a specific interaction or overall experience.Survey asking customers to rate their satisfaction on a scale of 1-5Provides insights into specific areas of the customer experience that need improvement.
Average Order Value (AOV)The average amount spent each time a customer places an order.Total Revenue / Total Number of OrdersIndicates the revenue-generating potential of each customer and the effectiveness of upselling strategies.

Cross-Selling and Upselling Techniques for Retention


Effective cross-selling and upselling strategies are pivotal in not only increasing the average order value but also in enhancing customer retention.

Here's how to effectively implement these techniques:

Identify complementary products

Analyze purchasing patterns to offer relevant products that complement what the customer has already bought. This increases the perceived value of their purchase.

Segment your customers

Use customer data to segment your audience based on their buying behavior and preferences. Tailored product suggestions can lead to higher conversion rates.

Time your offers strategically

Present upsell or cross-sell offers at points when the customer is most likely to be receptive, such as during checkout or immediately after a purchase.

Create bundles

Package related products together at a slightly lower price than if purchased separately.

Bundles are attractive because they offer a convenient and cost-effective solution for customers.

Leverage customer reviews

Showcase positive reviews of additional products at the point of sale to build trust and encourage purchases.

Offer upgrade

Highlight the benefits of premium versions of products the customer is already interested in. Stress improvements in quality, features, or longevity.

Use loyalty programs

Encourage repeat purchases by linking upsell and cross-sell opportunities to points or rewards within your loyalty program.

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Final Remarks


Prioritizing customer retention is crucial if you want to fully realize the potential of your company.

By implementing comprehensive strategies, you can ensure that your customers remain loyal and engaged.

This loyalty translates into a significant boost in profits, turning your business into a thriving, money-making machine.

Don't wait any longer; take action now and reap the rewards of a dedicated customer base.

Frequently Asked Questions

How customizable is my ecommerce store?

This depends on the eCommerce tool you use. For example, Magento is 100% customizable, and you can amend just about every aspect. Shopify on the other hand has far fewer customization options.

Is shared hosting good for eCommerce?

There are several advantages of using shared hosting for eCommerce, like its low cost, security, and user-friendliness. However, if you’re looking for a scalable hosting plan, managed cloud server might be a better choice for you.

Does my ecommerce store need to be PCI compliant?

Yes, if you’re going to be accepting payments via credit and debit card you’ll need to meet PCI regulations.

Can I use WordPress hosting for an ecommerce site?

Yes, of course. In fact, the platform has some of the best online stores and a range of payment processor plugins on the market.

What role does customer feedback play in retention strategies?

Customer feedback offers insights into preferences, highlights areas for improvement, and helps tailor services to meet needs. By actively addressing feedback, businesses can boost satisfaction, build loyalty, and reduce churn, fostering a more loyal customer base.

Can customer retention strategies also attract new customers?

Yes, customer retention strategies can attract new customers. Positive experiences and loyalty programs lead to word-of-mouth referrals and strong online reviews, enhancing brand reputation.

Satisfied customers often recommend the business to others, drawing in new customers through trusted personal endorsements and visible customer satisfaction.

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