If you want your eCommerce business to succeed, you need to focus on retention.
Many companies struggle to acquire new customers, without worrying about keeping the ones they have. The truth is that retaining customers is more important than acquiring new ones. In this blog, we’ll discuss some of the key factors that affect customer retention and give tips on how to improve your retention rate, which will directly impact your revenue.
One of the most important factors affecting customer retention is how well you understand your customer journey.
You need to know when and where your customers will leave you and take steps to prevent this from happening. You’re probably not attracting the right kind of customers, so it’s best to focus on attracting qualified leads. Or maybe your content isn’t engaging enough, so some research is the next step, not to mention changes in your writing.
Maybe your user experience isn’t very friendly and your system is creating barriers to payment. Many factors can affect customer retention, and it’s important to analyze them all if you want to improve your retention rate.
Retention is long-term and is linked to another concept that you are familiar with: customer satisfaction. This is a very important aspect to consider and retention is the way to measure it. Customers may leave if they are unhappy with your product or service, so first make sure that what you are selling provides value and fulfills any need, no change in the customer journey will help you hand if you do not think this in mind. .
So how do you increase customer satisfaction?
You can start by providing engaging content, making it easy for customers to find what they are looking for on your website, and improving the user experience. Also, make sure you’re there when they need you, provide good customer service, and respond to questions quickly. Control is an endless plane with many moving parts that need to be controlled. Let’s dive into some of them.
Tip: Tools like PowerCoupons, which send personalized one-time offers, can be a great first step in increasing loyalty and measuring satisfaction.
How do I know if I’m attracting the right customers? It’s all about retention.
The answer may be hidden in your customer data, now is the time to look at how much money you are getting and by source and analyze your conversion rate. This tells you how many people became customers or bought at least once. This gives you a first impression of qualified traffic, a conversion rate of between 3% and 10% is very good since the traffic you are checking is TOF (over the space). Then compare the average lifetime value of that customer to the actual retention rate which could be the average number of purchases over 3 for example.
Let’s break it down into a three-step process:
- Source Analysis: Which sources get the best traffic? If the difference between the sources is more than 4%, you should try the ones with the lowest percentage to try to increase it. If they are all the same, pick one and do an experiment to see if it can be increased.
- Customer-Product Analysis: If you have a CRM, you can analyze your customers by source and find out what products they buy most often. Perhaps a specific niche brings customers who buy your premium products, which will be considered a profitable and worthy source of income. On the other hand, maybe a source with a high conversion rate is attracting customers to buy your cheap product, and an out-of-sale strategy might be in order there.
- Customer culture: Segmentation is key to understanding your customer and their life cycle. How many transactions need to happen before you become their priority? How much do they have to spend before they trust your brand? Information may be hidden in your customer data and waiting to be exploited. Segmentation will help you understand if some loyal customers are drifting or are at risk of defecting so you can come up with strategies to reengage them.
Customer culture trends
There is no single retention strategy. Every business is different and requires unique ways to retain customers.
It comes down to what we call the Customer Cultivation Framework, a set of practices designed to help you understand your customer segments and take action with data that improves interest, improves development efforts, and supports and increase retention rates.
Data is our engine as we analyze the unique behavior of your customers and segment them, giving you insights and actionable tools like powerful coupons, dynamic segments and data integration, not to mention analytics. the depth of who buys your store. behavior.
All this to say that we take a scientific and research approach to understand your customer. We start with who they are, what they do on your site, how likely they are to buy, and create a customized experience for them.
The result is higher retention rates, more engaged customers, and a better bottom line for you.