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13 Effective Proven Customer Retention Strategies For eCommerce Stores Like Shopify

30 Aug 24  

 

Reading Time: 8 minutes

Akhila Mathai

Content Writer

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Did you know that 80% of your future profits could come from just 20% of your existing customers?

This striking fact highlights a key e-Commerce reality: customer retention isn’t Just beneficial—it’s essential.

As an e-commerce business owner or enthusiast, especially if you’re involved in Shopify stores or Shopify app development, you might wonder how to not only attract customers but also keep them loyal. In today’s crowded digital marketplace, where a competitor is just a click away, gaining customer loyalty is more challenging and more critical than ever.

But here’s the good news: even a small improvement in customer retention can significantly boost your profit margins. It’s the secret weapon that e-commerce entrepreneurs use to outpace their competition and build sustainable, successful businesses. So, how can you turn one-time buyers into loyal ones? How do you create a customer experience so compelling that shoppers can’t help but return?

Here are 14 proven customer retention strategies specifically for e-commerce stores like yours. Use these tips to grow your online store and retain loyal customers long-term.

What Is Customer Retention?

Customer retention is all about keeping your customers happy and encouraging them to return for more purchases. It involves creating a positive experience that makes them want to come back. This can include offering excellent customer service, providing high-quality products, and ensuring that your customers feel valued.

The main goal of customer retention strategies is to make sure that customers are satisfied with what they buy. When customers are happy, they are more likely to make repeat purchases. This means they will choose your Shopify store or e-commerce platform over others, even when they have many options available.

Why Is Customer Engagement And Retention An Important Tool For An E-Commerce Business?

Let’s explore why keeping customers coming back is crucial for your e-commerce store. Think of your business as a garden where customers are the plants. New customers are like seeds you plant, but without proper care (good retention), your garden won’t thrive.

Here’s why you should focus on customer retention:

Retention Strategies To Convert First Time Customers To Loyal Ones

1. Hassle-free Navigation Experience

Even in Shopify stores or any other e-commerce apps, customers scroll through different categories and sections, just like they scroll on any app to find what they expect to search. But when it comes to e-commerce platforms, customers can directly search for the product they are actually looking for and obtain the result within a few clicks. If this process keeps the customer waiting too long, they might discard the cart. Also, a user-friendly interface is crucial for keeping customers on the e-commerce apps.

For example, Fairway is an e-commerce app designed with a simple and easy-to-use layout. This makes it easy for customers to stay engaged while using the app. Additionally, the app offers a user-friendly interface and thereby seamless experience, allowing users to browse and shop without any interruptions, much like a smooth ride on a well-paved road

2. Enhanced Customer Service

Customer support tools help you or your team quickly solve customer problems. This improves their experience with your business. Adding a chat feature to your website can boost sales. Shopify Inbox offers live chat with AI to give fast answers. Customers can easily reach you from any device.

These personal interactions let you stand out from competitors. Try going above and beyond by including special touches in your service. A small gift or handwritten note can make a big impact. Good support builds loyalty and can turn unhappy customers into fans. Make it a priority to provide excellent service at every touchpoint.

3. Encourage Customers To Create Accounts

Customer profiles make buying again easy. They give shoppers quick access to past orders, saved shipping details, and personalized experiences. These small perks encourage people to come back and buy more, making shopping better overall.

But customer profiles can be tricky. New shoppers often think making an account is too much work, which might stop them from buying. Many people prefer to buy without an account if they can. To fix this, let customers make an account after they buy for the first time. This way, they can try your products without the extra steps. After they buy and like what they got, they’ll be more likely to make an account.


4. Introduce A Loyalty Program

Customer loyalty programs, also known as customer retention programs, work well because they push buyers to shop more often to get good perks. This creates a win-win situation for you and your customers; they get more value each time they buy, and you gain from their repeat visits.

Get customers excited about the program by giving them starter points when they sign up. Once they see how quick it is to earn rewards, they’ll be eager to come back to your store to do it again.

Setting up a loyalty program can be as easy as giving customers a bonus on their second buy or when they spend a certain amount. Store reports help you spot who your regular shoppers are by how much they spend and how often they order. You can also use automatic reward apps, which give your customers points.

Fairway has utilized its loyalty program to reward their customers with credit points each time they purchase a product.

5. Send Engaging Personalized Emails To Build Lasting Customer Relationship

Email campaigns help you create and nurture bonds with customers before and after they buy. Every email should enhance their experience. If not, you might lose them.

Start with thank-you emails. A week after someone’s first purchase, send a message saying, We’re grateful for your business.” This shows you care about their satisfaction and value their support. Remember, each email should serve a purpose and benefit the customer.

By focusing on their needs, you’ll build stronger, lasting relationships that can lead to repeat business and loyalty.

See how Zomato has sent engaging mail to their customers.


6. Offer Discounts Or Cashback Offers 

When customers haven’t shopped with you for a while, try giving them a reason to come back. Send special deals like discounts or store credit just for these inactive buyers.

This shows you care about their business and gives them an extra push to shop at your online store again. It’s a great way to get old customers interested in your brand once more.

7. Collect Customer Feedback

Customer opinions are valuable for making your business better. Ask for their thoughts through quick polls, online reviews, or social media questions.

When you listen and fix problems fast, it shows you care about what they think. This makes customers feel important and want to keep buying from you. It’s like building a friendship with your shoppers.

By valuing their ideas, you create loyal fans who come back again and again. This helps your business grow and succeed in the long run.


8. Smooth Return Process

A smooth and easy returns process is key to keeping customers happy. Make sure your return policy is clear, simple, and easy to find on your website.

Make returns easier by providing free return shipping labels or using a third-party service to handle returns. When customers have a good experience returning items, they’re more likely to buy from you again, even if they didn’t keep their first purchase.


9. Provide A Subscription Service

A subscription model can boost your business by offering customers ease and ensuring steady income. Think about subscriptions for items people buy often or need to refill regularly.

This saves customers the hassle of ordering again and again when they run out, which can make them more loyal and likely to stick with your business.

Jill & Ally uses its crystal candle club to encourage repeat purchases. Bigger discounts for more frequent subscriptions tempt new customers to buy regularly. They also offer early product access, members-only sales, and bonus items as perks.

After signing up, customers allow Jill & Ally to charge their payment card based on their chosen subscription plan.


10. Change Customer Complaints Into Resolutions

Mistakes may happen, but your response can be crucial in keeping upset customers. When someone complains or showed unhappiness, react quickly with understanding and provide a fix that goes beyond what they expect.

Show real care about their situation and take swift action to solve the problem. This hands-on approach not only shows top-notch customer care but also might change an unhappy customer into someone who speaks highly of your company.



11. Reward Referrals 

Motivating current customers to recommend your business to their circle can effectively grow your clientele while showing appreciation for loyalty. When a customer suggests your services, they’re endorsing your quality and dependability. This endorsement is priceless, as newcomers are more inclined to buy based on positive feedback from someone they trust.

Setting up a referral system is an excellent way to implement a two-way reward structure, where both the referrer and the new client receive perks.


12. Provide Value Added Services For Flexible Shopping


Providing flexible payment choices like buy now, pay later (BNPL) can greatly boost customer loyalty. BNPL lets shoppers buy items and spread out payments, often with minimal or no fees.

Showcase BNPL options on product pages and at checkout. This flexibility eases financial pressure on customers, making them more likely to buy and come back. It also makes your products accessible to more people, including those who might not have the full amount on hand.


See how e commerce store Myntra has offered their customers BNPL and no hindrance to shopping, So that customers keep sticking to their shopping cart. Happy shopping enables you to boost loyal customers.

13.Gamification To Enhance User Experience


Gamification can spice up the shopping experience, making it more fun and engaging for customers. Add elements such as points, badges, levels, and leaderboards to your buyer’s journey. By creating an interactive and rewarding process, you can boost customer involvement and build lasting loyalty.

Also read: How Much is the Average Cost of Ecommerce App Development?


When To Focus On Customer Retention?

As an ecommerce business owner, knowing when to prioritize customer retention is crucial. Here’s a guide to help you:

TimingAction
After First SaleSend thank you email, ask for feedback, offer discount
Repeat Purchases NoticedRecognize loyalty with exclusive offers or customer loyalty program
Seasonal PeaksRe-engage past customers, encourage purchases
High Churn RateAnalyze reasons, focus on retention strategies
Solid Customer Base EstablishedShift focus from acquisition to retention
Limited Marketing BudgetPrioritize engaging existing customers
New Product LaunchTarget existing customers who trust your brand

Remember, customer retention doesn’t mean stopping customer acquisition. It’s about finding the right balance. Consider your business’s growth stage, customer behaviors, and market trends to determine when to increase retention efforts.


Closing Thoughts

Implementing these customer retention tactics can greatly boost your Shopify store’s success. By fostering strong customer relationships, delivering top-notch support, and customizing experiences, you’ll build a loyal following that keeps coming back.

Remember, satisfied customers drive repeat sales and become brand advocates, spreading the word about your offerings. Start applying these strategies now to see your Shopify development flourish!

For those looking for shopify app development or similar ecommerce app development, get in touch with Mindster for expert assistance in creating a thriving online store.

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