An E-commerce conversion sales funnel doesn’t end when a customer completes an online purchase. In an ideal scenario, the first-time buyer starts a sales cycle through a series of repeated purchases. This cycle ends with the first-time buyer becoming a loyal customer. Apart from attracting new customers, the ultimate goal for all E-commerce websites is to grow its number of loyal clients. However with 2018 data from Statista revealing that merely 2.86% of E-commerce website visits result in conversions, encouraging previous shoppers to return and make another purchase is surely not easy. Attracting and retaining clients is a tough challenge. However, a look at the most successful online stores proves that it is attainable. The following briefly discusses how a website store can survive and thrive in the very competitive world of online marketing by diligently implementing customer retention tactics.
The importance of customer retention strategies.
Customer acquisition may be a firm’s initial goal. However, to truly prosper, a business should likewise prioritize customer retention initiatives. The results of a 2013 survey from EConsultancy even suggests that companies should focus more on retaining existing clients. In the said survey, 70% of respondents said it is cheaper to keep existing clients than to get new ones. This led to the conclusion that customer acquisition is a better investment for E-commerce websites.
Make a positive impact on first-time customers
It pays to know that in E-commerce marketing, first impressions can be a deal-breaker. You want to build a lasting relationship with clients. However, it won’t happen unless you give them a smooth and remarkable online shopping experience the first time around. Listed below are some tried and tested tactics that an E-commerce website can do to keep customers coming back.
Offer a welcome gift.
You want the first visit to be a remarkable one so how about offering an exciting freebie to welcome the newbies on your site. A simple gift (e.g. free shipping, discounts, complimentary sample) will serve as a nice way to warmly welcome your guests. Moreover, funds that the E-commerce website would shell out to give freebies or discounts are likely to be a good investment because there is a great chance that the customers will appreciate it and return. In a survey done by RetailMeNot, an online shopping platform, 80% of respondents said that they were encouraged to buy from a new brand if the offer comes with a discount.
Create a loyalty program
If the freebie given to first-time clients managed to convince them to buy again, this form of reward system should continue by establishing a customer loyalty program. A research study published by the International Journal of Business and Social Science shows that loyalty programs are useful in building customer retention. Since people love rewards, it is not hard to believe that it can help foster a positive relationship with clients. A loyalty system can also help an E-commerce website identify their most loyal customers. The firm can use the data they can gather from the members to further enhance their services.
Install a live chat option.
Great customer service means giving prompt and appropriate action to any query or concern that the client has. In many cases, delay in answering questions of prospective customers can spell huge profit loss. An E-commerce store can avoid this from happening by installing a live chat option. This functionality is a cool way to offer excellent customer support instantly. Live chat on an online shopping website offers a convenient way for clients to reach out to the firm in real-time and can significantly boost sales. A research study from FurstPerson, a market research company claims that a live chat feature encourages 63% of customers to visit a website again.
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