What is customer retention in e-commerce and why is it important?

Every eCommerce store owner knows the value of every single customer.

You might have come across businessmen who put a lot of effort into acquiring new customers. Rather than attracting new customers every day, have you ever thought about focusing on them to stay long?

Of course, I do!! If this is your answer, then how effective are your customer retention strategies? Both customer experience and value are equally important. Customer retention strategies are one of the most effective ways to turn visitors into long-lasting potential customers.

Customer retention refers to?a company's ability to turn customers into repeat buyers and prevent them from switching to a competitor. It indicates whether your product and the quality of your service please your existing customers. It's also the lifeblood of most subscription-based companies and service providers.

Importance of customer retention?

Customer retention seems equally important for any eCommerce store irrespective of its survival. It measures the success rate of a store’s new customers and spread out ideas to satisfy their existing customers too.

Retaining customers are easier and are affordable than acquiring new ones. According to a fact, a 5% increase in customer retention can increase company?revenue by 25 to 95%. Such a bravo move is needed. Retaining customers will bring companies a ton of ROI.

Here are a few reasons for the importance of customer retention for e-commerce

1. Loyalty:?Retained customers would probably buy more often and would like to spend more than newer customers. They have learned the value of the product or service you offer and that will make them visit again.

2. User Experience: A solid customer experience will help you to keep up to 84% of customers from leaving over a simple returning product.

3. Referrals: Satisfied and loyal customers are more likely to refer your company to their circle including friends and family. It helps in bringing new customers free of charge.

4. Lifetime Value:?Connecting your customers emotionally will help in extending the lifetime of the customers in your eCommerce store. It is four times greater than without the personal touch.

Introduce a customer loyalty program

A customer loyalty program is quite a good way to establish or showcase your sincerity to your loyal customers. There are high chances to increase your sales through the?customer loyalty program.

The customer loyalty program not only provides you cashback, discounts, and other perks but also provides value to your customers. You can encourage your customers to spend even more with your brand.