Why Customer Loyalty Matters More Than Ever: eCommerce Retention Strategies

It’s no secret that customer loyalty is key to the success of any business. In today’s competitive eCommerce landscape, it’s more important than ever to focus on retention strategies to keep your customers coming back.

A recent study showed that businesses lose 23% to 30% of their customer base each year due to a lack of loyalty. That’s a huge number! In this blog post, we’ll discuss some tips for building customer loyalty and retaining your customers for years to come.

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Why D2C brands should focus on retention ?

It was discovered that your current consumers would spend 67 percent more than new ones. It’s cheaper to bring back customers who have bought from you previously than to attract new consumers.

In a world where D2C companies are on the rise, and competition for consumer attention is tougher than ever, retention methods are more vital than ever. Each year, D2C businesses lose a large number of customers owing to a lack of loyalty, therefore it’s critical to find ways to keep your consumers coming back.

Some tips for building customer loyalty and retaining your customers include:

Referral & Customer Loyalty Program

One of the best ways to keep customers coming back is to offer them a referral program. When customers are rewarded for referring their friends, they’re more likely to return and make additional purchases.

Your present client is your brand’s most powerful advocate and has the ability to generate new consumers.

Both your brand and your consumer may profit from a client referral program.

The first benefit of a customer referral program is that it attracts new leads, the second benefit is that it encourages existing customers to become more proactive in promoting your business for additional services.

Another great way to keep customers coming back is through customer loyalty programs. These programs offer incentives such as discounts, free shipping, or points that can be redeemed for products or services.

This type of program helps to foster a sense of community among your customers and encourages them to keep coming back for more.

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Building a User Community

The greatest approach to increase customer retention is to make your consumers feel like family.

Creating an online community of your clients may have a significant and visible impact on your company’s customer retention objectives.

When customers feel like they’re a part of something, they’re more likely to stick around.

Communities may help brand loyalty develop and entice consumers to return for additional purchases. Customers are interested in being heard, networking, and keeping contacts.

A company that builds connections and solves common problems before they arise will make customers feel better about the brand.

Retargeting & lookalike Advertising

Every day, a typical internet user encounters around 5,000 advertising. Even if a customer has previously purchased from you, there’s a good possibility they won’t recall your brand! The demand for D2C companies in marketing is increasing by the hour.

It was found that most new customers drop off after their first purchase, and only 32% order again within the first year.

That’s where retargeting and remarketing advertisements come in to remind consumers of what you have to offer them. They help you stay top of mind, no matter what businesses they frequent.

Lookalike audience is a way to target people who are similar to your current customers. Facebook will help you create a lookalike audience based on your customer list, so you can reach new people who are likely to be interested in your product or service.

You may also target your consumers and run these campaigns for bespoke messaging, which translates to more interaction and retention.

Email Marketing Automation Flow for Personalised Recommendation

Recommending products to customers who have already purchased from you is a great way to increase customer loyalty.

When customers are sent product recommendations that are personalised and relevant to them, they’re more likely to continue buying from you.

Email marketing automation can help with this by providing an automated flow of email recommendations based on past purchases or behaviour.

This eliminates the need for manual intervention and allows you to focus on other important tasks.

Not only does this keep customers coming back, but it also helps increase sales and conversions.

There are many ways to retain your consumers, and these are just a few of the most effective methods. By using a variety of tactics, you can create a retention strategy that’s tailored to your business and customers.

Subscription Model for Product

Shoppers want not just bargains these days, but convenience as well. That is why direct-to-consumer businesses are seeing a rapid expansion.

Customers may subscribe to a collection of goods or services they require on a recurring basis, either prepayed for or paid for via a specified payment method during the term of delivery using subscription-based eCommerce.

Although the eCommerce product subscription model is not a new concept, it is one that is seeing a resurgence due to its convenience and value for customers. When shoppers can find everything they need in one place and have it delivered to their door on a recurring basis, they are more likely to be loyal to that brand.

This type of subscription model is popular among DTC brands because it allows them to build a relationship with their customers and keep them coming back for more. It also helps to increase brand loyalty, as customers are more likely to recommend a product or service that they’re happy with.

Conclusion

Customer loyalty is more important than ever in the current eCommerce landscape. By using a variety of retention strategies, you can keep your customers coming back for more and increase brand loyalty.

DTC businesses should focus on using retargeting and lookalike advertising, email marketing automation flows for personalised product recommendations, and a subscription model for their products.

What are your thoughts on customer loyalty? Do you think it’s more important now than ever before?

Let us know in the comments!