When you’re in the ecommerce space, getting a shopper to click ‘Buy’ feels like a major accomplishment. But acquiring new customers is both time consuming and costly. If you want to grow your ecommerce business by leaps and bounds, you MUST shift your focus from acquisition to retention. In other words, you need to focus on turning customers into repeat customers in ecommerce—the people who:
Repeat customers create more revenue for your business long-term—their lifetime value is usually multiples higher than a one-and-done shopper. Moreover, it’s less expensive to get an existing customer to buy again than it is to win a first-time purchase—as much as five times cheaper.
So…how do you get more repeat customers in ecommerce?
Building an effective strategy for repeat business starts with understanding recurring purchase patterns.
Seasonality, average product lifespan, customer personas—these and other factors should be used to shape your customer retention strategy.
Once you’ve identified the natural recurring-purchase patterns, segment your customer list into those who:
The more accurately you segment and target your customers, the more likely you are to see positive results from your marketing and advertising.
Start your segmentation by identifying all your repeat customers, which products they purchased, and what their lifetime value is. Depending on the size and depth of your data, you can also segment your customer list by location, shipping preferences, payment method, and more, to obtain even more clues about who you should target for repeat purchases.
Use the insights obtained from segmentation to build an intelligent advertising plan for your business.
Some common promotional ideas include:
Another area to invest in when it comes to retaining customers is your return solution.
More than 90% of first-time customers who rated their return experience as either ‘easy’ or ‘very easy’ are willing to make a repeat purchase.
But your brand can’t have an ‘easy’ returns process without a great platform and a strong policy. So get started by taking action today—refine your strategy as you go—and watch as your repeat business grows and grows.