Do you know that if you increase your customer retention by 5%, you can increase your profit by 25%? What makes customer loyalty so popular and profitable is the loyal customers of your brand. Your loyal customers do not always hunt for products that have the least price, instead, they seek quality products and seamless personalized customer service. E-commerce companies have a multitude of options in deepening customer loyalty as it can lead to exponential growth for the company. Your loyal customers are your brand advocates so it is the responsibility of the company to enhance customer loyalty and trust simultaneously.
Ways to Boost Customer Loyalty in E-commerce Business
The big players of the e-commerce sector already know the game of expanding their business as well as their target segment of the audience. They not only focus on an extremely good shopping experience but also provide amazing brand loyalty to their customers which eventually leads to customer loyalty. Let us figure out the best ways of boosting customer loyalty for e-commerce businesses.
1. Offer Loyalty Program
Loyalty programs work wonders if implemented properly by retailers, especially online retailers. Most of the shoppers want loyalty programs where they can get benefits and discounts. More than 84% of the customers want loyalty programs and they spend 18% more than the regular customers. The key to a successful loyalty program is how the shoppers earn the points and how they can redeem them. Most of the customers want rewards, gifts, and swag, and personalized offers.
2. Provide Risk-Free Returns
Free shipping and no-risk returns are getting popular among e-commerce retailers because they build trust with the shoppers that come the first time to your brand. Along with that try before you buy is also a feature that most of the popular e-commerce brands are following that gives the customers a fair amount of idea about the products they are buying. However, with the introduction of “pay later” and “shop now”, the confidence can be taken one step ahead.
3. Personalize Customer Service
Nowadays, in the era of digitalization, shoppers expect first-class post-purchase customer service. The post-purchase queries range from delivery times to defective products, return possess to payment-related queries, and the list goes on. Whatever the situation is, most customers expect seamless personalized customer service. Customers are willing to pay more for a brand if theta is satisfied with the service offered by the brand. Personalized and faster customer service is the key to customer loyalty for e-commerce brands.
4. Use Referral Program
A customer referral program is an age-old method practiced by most retail companies including e-commerce brands for attracting more customers. Your existing customers can send a referral link or code to a new customer. When they click the link or apply the code, then both the customers will get some benefits in their next order. A referral program is the proven method of increasing customer loyalty because your existing customers trust you and it is the reason for bringing new customers to your brand. However, offers and discounts always attract customers and that is the essence of the success of the referral programs.
5. Customer Engagement
The customers are the king of any business. By understanding the behavior of the customer and the buying patterns, you can engage the customers by sending email or text messages by offering a personalized discount or offers. When the customers get engaged with your brand by reading your texts, emails, or reviewing your products, or sharing them on social media, they get more involved with your brand. As a result, if customer loyalty increases and they trust your company that leads to more sales.
6. Offer Freebies and Discounts
Offering freebies, discounts, giveaways, etc. always entices customers. Whenever a customer pays a huge lump sum amount of money, you should offer them a few products for free. It will not only increase customer loyalty but also will provide customer delight. Freebies and discounts that are too customized are the main agenda of attracting new customers and making the existing customers purchase from your brand.
7. Setup Retargeting Ad Campaign
Shoppers usually browse your site and spend time while looking for products, all you can provide them is a nudge on the other platforms like the social media channels. Sometimes the shoppers may not be able to check out the items they have added to the cart or are planning to visit later. In this situation, you can send a reminder mail or notifications about the cart abandonment because they were already interested in those items. It is a way of sending them personalized content and other campaigns as a part of the customer loyalty program.
8. Use Multiple Communication Channels
By offering your customers multiple options of communication channels for connecting with your brand, you are making it easier for them in terms of brand reach. It is a very effective way of enhancing customer loyalty where your brand must be available to respond to the queries on every communication channel. Omnichannel retail strategy is the best option to keep in touch with all the customer service touchpoints. Always remember that the faster you respond to your customers, the better customer experience they will receive which leads to enhanced customer loyalty.
9. Request for Customer Feedback
Asking for product and service feedback always works. However, time also matters in this case. Requesting customer feedback helps in boosting customer loyalty as they will give positive feedback if they are happy with your product offerings and services. Eventually, the customers will definitely come again to your site to buy that product or they can surf your other products too as you have gained confidence in the customer’s mind. It will not only increase your brand loyalty but also means your customers are delighted by your services.
The Bottom Line
Sales and marketing are the two processes that go hand in hand. Both are equally important and complement each other in helping brands in building customer loyalty and brand image. E-commerce companies must understand the benefits of customer loyalty for their business growth. It needs to be nurtured through constant effort and devotion while satisfying the customer’s needs by feeling valued.
The truth is that loyal customers are the source of revenue as they will not only shop more but also bring new customers to your brand. By leveraging the above-mentioned strategies you can increase your profits by increasing the number of sales from existing customers and decreasing the cost of new customer acquisition because your customers will spread positive word-of-mouth promotion.
