Ecommerce

eCommerce Customer Loyalty 101

The online retail business is a very competitive market where it’s become increasingly harder to earn customer loyalty let alone acquire new customers without employing a few tactics like scarcity, free shipping, or rewards programs. And even then, that’s not enough to keep a customer from looking at other retail sites to see if they can find something better. Just think about it, there’s a total of 12 - 24 million eCommerce sites on the internet. How will you distinguish yourself from the rest? In this article, we can’t promise to make you the best of the best but we can guarantee that if you follow these tips below, you’ll earn more loyal customers, which is something very few eCommerce sites can actually boast.

Minimize customer risk before and after they buy

Uncertainty is a big problem among online shoppers because they can’t see, feel, or try the product in person. Take this opportunity to experiment with different ways to let your customers interact with your products whether it’s a Facebook 360 view of the items or a 24/7 customer Service. You can also do the basic money back guarantee or no questions asked return policy. Some businesses might view this as a risk but consider how much effort it takes for the customer to order a product online. If they return a product, there must be a good reason for them doing so Instead of seeing it as a loss, try to view it as an opportunity to get valuable feedback.

Offer product transparency

You might be tempted to filter your product reviews but it’s best not to do so. If you have bad reviews but they are backed by a larger amount of positive reviews, then you have nothing to worry about. Customers are likely to trust your site since they recognize that the reviews are authentic. You can also use bad reviews as feedback and remove whatever products your customers don’t like.

Take advantage of customer data

Built a recommendation system around your customer’s data instead of pushing products they might not even want. This allows you to offer something truly unique and personalized for your customer. Not only will it benefit your customer, but also your business.

Utilize a Customer Relationship Management (CRM) system

A CRM allows you to keep track of your customer’s purchase journey. E-Commerce retailers can greatly benefit from this tool by using data to create a customer retention strategy. You can also use it to monitor customers who have received points from your loyalty program and devise a campaign that’ll keep them around longer.

Make the order fulfilment process dependable

Physical stores spend a lot of money developing world class order fulfillment for their customers. There’s no good reason why you shouldn’t do the same considering that it is cheaper to run a retail business online. Again, make your customer’s life easier. Don’t post misleading photos of your product, avoid surprising them with hidden fees, and always make sure to deliver your product on time.

Make your website easily navigable

A purchase-ready customer will leave a site immediately if they can’t find what they’re looking for or if the order process is too complex. You can solve this issue by making sure your products are highly visible on the site and that your order process is simplified.

Make your customer’s life easy

To iterate the point we discussed earlier, making the customer’s buying experience as easy as possible increases your customer retention rate. Customer needs are very simple. They want quality service that’s easy, secure, and simple. Be true to that and the loyal customers will follow.

Customer loyalty creates a large impact on your business’ finances. In order to get the return on investment on acquiring new customers, you need to give them good enough reason to return to your site and purchase your products.

For example, a study shows that a retailer wasn’t able to earn profit from a customer until his fourth purchase from the site. The
retailer had to retain the customer for a year before he got his return of investment. It simply doesn’t make sense not to invest in a customer retention strategy especially since no online retailer can break even from a onetime shopper.

In conclusion, take the time to create a simplified buyer’s journey and implement it on your site. Trust that your customers will make the right decision when purchasing a product from your site. Once you meet these requirements, you will start to see an increase in your customer loyalty base.


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