When it comes to running an Ecommerce company, there is no shortage of obstacles you’ll face when it comes to staying competitive in saturated markets. One of the many hurdles that Ecommerce companies face isn’t just in marketing to get new consumers, but marketing to make sure they have great customer retention.
Getting new customers is one thing, but keeping them is a completely different challenge.
So how do you cater your marketing strategy to focus on customer retention instead of customer acquisition?
Take a look below for insight into how to launch an effective Ecommerce customer retention marketing strategy.
Ecommerce Customer Retention
What Is Ecommerce Retention Marketing? Ecommerce retention marketing is a specific type of marketing that focuses not only on acquiring new customers but keeping existing customers.
If you want to grow your Ecommerce business you need to attack your marketing strategies in two ways: with retention marketing and acquisition marketing. Getting new customers is one thing, but keeping them is a completely different challenge.
While many new Ecommerce companies put all of their eggs in the “new customer” basket when it comes to marketing, successful brands know that real growth comes from repeat customers. This means more sales with less effort, but also repeat customers tend to be more loyal, and loyal customers refer new customers.
So, in reality, retention marketing is just as important as traditional marketing efforts, as repeat customers can multiply quickly and help your business expand. The only question is—how do you implement effective marketing strategies that are specifically targeted at customer retention?
Let’s dive in.
What Are Some Effective Strategies For Ecommerce Customer Retention?
Chances are, at this point, your company’s marketing efforts are already focused on getting new customers, and acquisition-based marketing is important. But you can slightly shift certain practices you already have in place to better focus on retention as well.
Here are some of the best practices to make this happen.
Send Direct Promotional Offers
Promotional offers through email or text are a great way to engage customers who have already invested in your company. When new customers try to purchase from your company, make sure that they are opting into SMS marketing messages or email. While emails have long been the standby for direct promotional offers, text message marketing will help your Ecommerce brand stay ahead of the competition.
The key to making these direct promotional offers effective is to make your existing customers feel like they’re getting an exclusive offer.
Make sure to include their name in the offer and encourage your customers to act quickly to take advantage of the discount code. A majority of shoppers are more likely to act on their digital codes within a week of receiving them.
Launch a Customer Loyalty Program
If you want to maintain loyal customers, then a customer loyalty program is a great place to start. The right customer loyalty program will offer value to customers through perks, discounts, or cash back.
The key is to include reward tiers that encourage more spending. Basically, the more you spend, the more you get back.
Some popular examples of this include Nordstrom’s rewards programs or “The Nordy Club” which tallies up how much customers spend on a point-based system. Every dollar is a point, and customers get $10 in Nordstrom cash for every 1,000 points they rack up.
It’s a simple and effective program that rewards customers for choosing to shop at Nordstrom.
Try a Customer Referral Program
One of the best ways to grow any business is through referrals. Referrals are free, and individuals are far more likely to check out a brand or a company when they have received a referral from someone else.
Referral programs are so effective because they not only encourage new leads but also reward existing customers for their loyalty, making them far more valuable than other types of marketing.
For example, you may offer a program that gives both the individual who referred someone and the new customer $10 off their next order. The goal is to offer an incentive both for the returning customer and the new one, so you can take a two-pronged approach to market your business.
Offer Value and Insight
The key to successful retention marketing is all about adding value to your customers. One way you can do this is to offer insight and advice that your customers can actually use.
Provide content that actually brings value to our customer’s life, such as new ways to use your products or advice or insight on the industry. A lot of the content that brands give out doesn’t truly offer anything that customers can use, but offering value will help build loyalty and keep your customers coming back time and time again.
For example, if you sell a hairspray product, don’t just keep publishing content on how great your hairspray is—think outside the box. Send emails or create blogs about different hairstyles for different events, how to use your spray on the go, or strategies to make your product last longer. You want your clients to learn about your product and want to use it more after they read your content.
If customers trust you and your opinions, they’re going to stay loyal to your brand.
If you're looking to keep your customers coming back for more, consider using personalized marketing in your ecommerce packages. It's a simple yet effective way to show your customers that you care about their experience with your brand. By including a personalized message or special offer in your packaging, you can create a more memorable unboxing experience that keeps customers engaged and encourages them to make another purchase. With in-package personalization, you can tailor your message to each individual customer based on their purchase history or preferences, increasing the chances that they'll take notice and take action. In fact, a study found that personalized product recommendations can increase conversion rates by up to 29%. So, if you're looking to boost your customer retention and drive more sales, in-package personalization is definitely worth considering.
Your existing customer base can be a truly untapped resource for growing your business—you just need to make sure that you cater certain marketing efforts directly cater toward the customers you already have. Doing this will not only help you grow your business now but help you maintain consistent growth well into the future.
You've made it this far and you've learned so much. Congratulations!
If you're looking to learn more about marketing or Ecommerce in general, feel free to reach out to us at: email@example.com
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