Think of the old scout saying: “make new friends but keep the old.” That’s retention.
In eCommerce, the real work starts post purchase. Your best customers are already sitting right in front of you. After all, you’ve already won them over with your products or services.
Which is to say, by retaining existing customers, you'd earn more.
And that’s because:
Acquiring a new customer is 5 to 25 times more expensive than retaining an existing one.
Existing customers tend to spend more and more often.
They are more likely to refer others to your business.
But how do you get existing customers coming back for more?
Let's delve into why customers don’t return and strategies for boosting customer retention.
1.Bad customer support:
Not providing quick responses and proactive solutions to customers’ queries.
How to fix it?
Provide useful customer support:
Automate responses for common queries and assign trained staff.
Use a ticketing system to manage inquiries.
Offer support via multiple channels like email, live chat, and calls.
For example - Flipkart has set up an automated response for common queries, which later connects to support executives if needed.
2.Misinterpretation of product:
- If the product description, images, and specs don’t match the delivered product, buyers will feel betrayed.
How to fix it?
Be genuine and transparent:
Provide accurate product details without any exaggeration or misleading information.
Conduct QA and product testing.
Use high-resolution images.
For example- Nappa dori, an online bag store, has included high-quality images including info about color variants.
3.Costlier than competitors:
- If buyers are able to find a better or equal product at a lower price elsewhere, they will switch.
How to fix it?
Provide competitive prices and deals
Monitor your competitors' pricing and deals and adjust accordingly.
Organize sales with discounts, provide coupons, deals, or cashbacks.
Create a loyalty/VIP program.
For example- PLIX sells plant based nutritional products and offers a wallet for collecting cashback, which can be redeemed during future purchases.
Lastly, you should send emails to inform buyers about discounts, deals, social proofs, etc.
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