This is the story of Jane, who decided to open a website selling baby gifts. For months, she sourced the softest toys and the prettiest blankets. She invested heavily in cross-network campaigns to acquire new leads, but conversion rates stagnated, leaving her frustrated.
With the help of a savvy business consultant, Jane made a strategic shift. Instead of focusing primarily on new lead campaigns, she turned to campaigns and automated processes for existing customers, and saw her conversion rates climb.
Jane is not alone in this mistake. Many business owners fall into the “lead growth” trap as a marketing strategy in e-commerce. However, the data tells a different story.
A Few Words on Retention
Did you know that returning customers generate about 40% of online store revenue? Research has found* that the average cart value of a returning customer is 33% higher than that of a new customer, and existing customers tend to increase their cart value each time they return to the site. Another study** showed that increasing the number of returning customers by just 5% can lead to a profit increase of 25%-95%. Additionally, converting a new customer requires more time and resources, costing 6-10 times more than converting a returning customer.
Therefore, as website owners, you have every reason to remind your customers to visit your site again.
Retention marketing fosters loyalty among long-time customers. This leads to the magic cycle we love—loyal customers recommend you to their friends, offering trustworthy word-of-mouth marketing. Additionally, your customers are likely to recommend your brand to people similar to them, providing targeted and accurate marketing.
Now that we understand the importance of retaining customers, especially in e-commerce, join us to explore five excellent methods for effective customer retention.
Email Marketing
Communicating with both new and existing customers via email is a great strategy. With easy-to-implement automation, you can reach every new customer within seconds with a thank-you email post-purchase. You can also update existing customers about promotions and deals on products they love. Email marketing allows you to personally reach out to many people who already know you, deepening their connection with you. Customer retention strengthens relationships between customers and brands (and the people behind the brand).
Our system offers basic templates for creating various automated processes, even in commerce. For example, a process for encouraging repeat purchases allows you to automatically reach out to customers after a defined period, offering relevant purchase suggestions.
This process starts with a purchase trigger, adding every customer who buys a product to the workflow. The workflow then sends a thank-you email detailing the purchased products. After a defined period, it checks the purchased products and category, sending another email with a relevant offer and purchase link.
Smart Use of Customer Data
Any respectable e-commerce site offers customers products based on past purchases and interests. Segmenting can be done on the site itself and through targeted emails and SMS. You can easily see each customer’s cart and purchase history. Use this data wisely.
Helpful Features:
– Personal Fields: Collect relevant customer info to personalize interactions, show specific content, and segment customers for different automation scenarios.
– Smart Links: Every link in emails or landing pages can trigger actions like data updates or customer classification.
– Store Sync + Product Block: Sync your online store with the system to display products and categories directly, increasing sales.
Customer Appreciation
Customers appreciate being seen as more than just wallets. Instead of constant discounts, find a balance with value-added offers like future purchase coupons, exclusive weekend sales, small gifts with purchases, or free shipping over a certain amount. Show that real people are behind the website.
Visit the template gallery in the system to send your customers an exclusive, irresistible offer!
Social Media Presence
Maintaining a strong social media presence is crucial. Build relationships with followers and target segmented audiences with tailored offers. At least one significant social media account that fits your business is essential, whether it’s a Facebook group, Instagram page, or TikTok account.
Memorable Branding
As an online store, you can’t design an extravagant storefront or open the biggest shop on the street. Instead, focus on memorable branding and a consistent visual language that reflects your brand message. This should also be evident in your email communications.
Key Takeaways
Customer retention is a critical step in any e-commerce marketing strategy. Returning customers account for around 80% of orders and often increase their cart size with each purchase. Retention involves maintaining and developing relationships with customers who are already familiar with your brand. Personal outreach via email or SMS and tailored content based on past purchases can help maintain an active site with high conversion rates without excessive spending on new customer acquisition campaigns.
*Research by Adobe Digital Insights
**Research by Bain & Company
