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5 Ways Ecommerce Brands Are Improving Customer Retention


Ecommerce is one of the few industries that has not just managed but actually thrived during the pandemic with a survey revealing that 90% of companies saw their online sales increase and 50% stating that sales grew by over 100%. With so many people doing most or all of their shopping online, it is understandable that ecommerce stores are doing all that they can to retain customers and avoid losing them to the competition.

So, how are ecommerce stores retaining their customers during this time?

1. Loyalty Programs.

One of the most effective strategies is to use a loyalty program. Loyalty programs incentivize customers to use your business more than once and can bring a range of benefits, including stopping you from having to compete on price and retaining customers with loyal customers spending as much as 67% more than new ones. On top of this, loyalty programs can increase customer lifetime value, allow you to build relationships with customers and even create brand advocates. The benefits of a loyalty program work both ways for customers and brands, so they are certainly worthwhile.

2. Establishing Brand Community.

With people leading so much of their life online, establishing an online brand community is smart and will encourage customers to return to your store. Providing the platform for people to come together and interact with one another will keep people coming back and help to establish your brand as an important resource in your niche and a place to socialize with likeminded people.

3. Engaging Social Media Presence.

Social media can be a great tool for ecommerce businesses and a smart way to retain customers. You should provide links to your socials at every opportunity and then post regular, informative and engaging content for your target customer. You should also be responsive on here and respond to comments and questions as swiftly and professionally as you can.

4. Transparency & Addressing Customer Feedback.

Most online shoppers have had at least one negative experience with an ecommerce store and this will be enough to turn them off for life. Instead, you should try to be as transparent as possible, admit fault and resolve any issues as swiftly as you can. Additionally, you should address both positive and negative feedback and use this is a way to grow and improve. When an online store clearly values and listens to its customers, they will be much more likely to use the brand again and recommend them to their network.

5. Standing for Strong Social & Environmental Responsibility.

Consumers are becoming increasingly aware of social and environmental issues and will align themselves with brands that prioritize corporate responsibility. This means that you should take steps to make sure that your brand is socially and environmentally responsible as well as raise awareness about topics that will be important to your target customer.

These are 5 of the most effective strategies that ecommerce businesses are using to retain customers. Ecommerce is booming right now, but it can also be hard for businesses to keep hold of customers when there is so much competition out there so implementing the best retention strategies is smart and should make a difference.