How to Improve E-Commerce Customer Retention Rates

Did you know that it costs 400% to 1,000% more to acquire a new customer than it does to retain an existing customer?

ecommerce customer retention

Statistics such as this attest to the importance of building a loyal customer base. Because when customers break ties with a business, they’ll typically choose one of its competitors instead. So if you run or otherwise manage an e-commerce website, check out the following tips to improve your customer retention rates.


Don’t Skimp on Delivery

Major online retailers like Amazon and Zappos know full well the importance of fast and affordable shipping. When customers are forced to pay an additional 15% for shipping, on top of the product’s listing price, they may think twice before making a purchase in the future. Consider offering either free or discounted shipping to retain your customers and improve their satisfaction levels.


Send Promotional Codes and Discounts

Of course, you can also your site’s improve customer retention rates by sending customers special promotional codes and discounts. Conventional wisdom should lead you to believe that a customer is more likely to make a second purchase if you send him or her a promotional offer. Assuming you have customers’ email addresses, set up an email campaign in which discounts such as these are emailed to customers on a regular basis.


Easy Returns

Don’t make the mistake of using a confusing return policy on your e-commerce site. While returns cost e-retailers big bucks, it’s even more expensive to lose a customer. You can retain more of your customers by allowing no-hassle returns.


Excellent Customer Service

Arguably, the single most influential element in determining whether a customer stays or goes is the service. Otherwise small things like addressing the customer by his or her name in emails and other correspondences goes a long ways in establishing a strong relationship. And once you’ve developed a relationship with your customers, they’ll be less likely to leave.


Offer Multiple Methods of Contact

When a customer has a question or issue with his or her order, they will probably want to contact the e-commerce company. Failure to provide adequate contact information on your site could lower the customer’s satisfaction, and possibly even discouraging him or her from returning in the future. But don’t just include your email address; also include your company’s phone number and fax number (if applicable). Publishing multiple methods of contact creates greater trust and transparency, which should in turn improve your retention rates.


These are just a few simple steps that you can take to improve your site’s customer retention rates.