5 Successful Ways to Increase Customer Retention in Your Ecommerce Store

Posted by Joel Platini on  February 08, 2020  in Ecommerce

Why is customer retention important? It is one of the flawless marketing strategies employed by store owners to make their customers stay loyal to their stores. Store owners often make a mistake by spending a fortune in looking for new leads because they don’t understand why customer retention is important.

The concept of acquiring new customers might seem colorful but the money you have to spend in acquiring them foreshadows that concept. But if those efforts are targeted in acknowledging the existing customers and greeting them for their loyalty, they will entrust your store.

In this article, we did a little research on this unscathed marketing strategy to understand why is customer retention important? And we have bought you 5 successful ways to increase customer retention in your eCommerce store.

What is Customer Retention?

Customer retention is an activity performed in eCommerce stores to encourage their customers to continue shopping at their store. The integral motive of online stores is to retain their customers through exclusive referral or loyalty programs. Yes, exhibiting your store to a new audience is good but having a loyal customer base will maintain the consistency of sales in your store.

Why is Customer Retention important for your store?

Did you know that customers can also bring new leads to your store? When your store has a loyal customer base then they will refer your store to their friends thus exposing your store to a newer audience, now this is marketing without spending a dime.

Existing customers are essential to boost the sales of your store and stabilize your revenue. You can nurture a very constructive relationship and foster loyalty with customer retention. Let’s see why customer loyalty is important,

Importance of Customer loyalty:

A recent study revealed that eCommerce stores saw a 25% – 90% elevation in their profits when they increased their customer retention by 5%. Retaining your loyal customers is one of the most efficient and effective ways to boost your sales and fetch more revenue.

Benefits of customer retention program in your store.

  1. It is Cheap – Yes, retaining your customers costs 4 times lesser than acquiring new ones. Customer retention is cost-effective and also the store with a loyal customer base always stands out.
  2. Easy to Sell – It is always easy to convince and sell a new product to a customer who has been a loyal recipient of your service. Reports prove that the chance of selling a product to new customers ranges between 5% to 20% in contrast to 60%-70% of existing customers.
  3. Loyal customers spend more – When a customer is familiar with your store they will feel confident and comforted to shop. Loyal customers know the quality of your store so they will try purchasing new products and are likely to spend more as they believe in your brand.
  4. Increases your Reputation – A store with a loyal customer base will always stand out from the crowd and will attract more traffic to your store spontaneously. This will increase the reputation of your store which will boost your sales and yield you more revenue.
  5. Revenue stays consistent – A vital aspect of an online store is the revenue it yields. Acquiring new customers and selling products to them will result in fluctuated revenue which is not a sign of growth. But with loyal customers, you will earn a stable revenue as you’ll already have a clear concept of the income you are about to draw.
  6. Increased WOM marketing – Your business growth depends on how you treat your existing customer. When customers trust your store they will be the source of new leads by referring your store to their friends thus increasing your WOM marketing. Even in this digital age, people are likely to be more influenced by referrals from their family or friends.
  7. Better store reviews – Reviews and feedback are hugely responsible for eCommerce store’s longevity. Review increases your store’s exposure and customers always flock to a store that has better feedback. With customer retention, you can earn better feedback from your loyal customer base as a response to your gratitude.
  8. Loyal customers stay with you – Let’s imagine you are unable to provide discounts due to low sales, new customers are likely to ditch your stores as a result of it. But not your loyal customer base, they are entrusted in your brand and will stay with you through difficult times

5 Successful ways to increase customer retention in your eCommerce Store

  • Offering next order coupons
  • Amplify your presence with referral marketing.
  • Run a loyalty program
  • Take advantage of Social proof (Review & Feedback)
  • Improve your customer engagement

Offering Next Order Coupons

Customers flock to your store when they are in need of something, once they are done with the purchase they leave. There is no reason for them to return to your store. Well, give them a reason to return to your store by offering next order coupons. It is one of the basic yet effective customer retention strategies used by major stores in the eCommerce world.

Next order coupons

Acknowledge the importance of customer’s loyalty and encourage them with a discount for their next purchase, this will motivate them to return to your store to avail that discount. Thus you are effectively driving repeated purchases and also customer retention is achieved when they return to purchase again.

By sending these email coupons in the order confirmation mail you are making your customers curious for their next purchase even before the completion of their existing purchase. Just like that, you are retaining your customers as they will be pleased with the gratitude you offer for their commitment to your store.

By providing next order WooCommerce coupons, you can stabilize your revenue as you’ll very well know the number of customers that are going to return to your store for their next purchase. This will increase your customer’s lifetime value which is a sign of your store’s prime and effectiveness.

Amplifying your presence with referral marketing

How would you feel when your customers do the work for you? Achieve WOM marketing at minimal or no cost at all by making them your brand advocates through referral marketing. Boost your engagement with your customers by greeting their referrals with exclusive rewards.

As we discussed earlier acquiring new customers is costly, it is high time your store needs a cost-effective referral program to retain your customers. With the referral program, your customers will achieve WOM marketing by exposing your store to new leads. People significantly count on the trust given by someone they know and this will attract new customers to your store.

Let’s see how referral marketing works,

  1. Each customer gets a unique link with a referral code.
  2. New leads will visit your store using the unique referral link given to them by your existing user.
  3. New customers successfully complete a purchase using the referral link.
  4. Your existing customer will be rewarded with a percentage discount, flat discount or a free product when the.

Greeting your customers with referral rewards will encourage them to trust and stay loyal to your brand. Run a dynamic referral program in your store and achieve customer retention and WOM marketing effortlessly.

Run a loyalty program

Every major eCommerce store around the world is using WooCommerce loyalty programs in their store. The loyalty program is one of the popular customer retention strategies in the world. Not just store owners, even customers are looking for a loyalty program. A recent study reported that around two-thirds of customers are looking to sign up for a customer loyalty program.

Run a loyalty program in your store and reward customers with loyalty points for their loyalty towards your store. This will motivate your customers to stay loyal to your store. So, instead of spending a fortune on acquiring new customers you can retain your existing customers and keep them satisfied with rewards.

Loyalty program

When customers are rewarded with points for their loyalty, they will entrust your brand and continue shopping in your store. A satisfied customer will never look for an alternative supplier even when your sales take a blow they will stay by your side.

WordPress loyalty programs are inexpensive and they have the ability to boost your customer lifetime value dramatically. Achieve customer retention effectively and also drive repeated purchases to your store by running a dynamic loyalty program in your store.

Take advantage of Social proof (Review & Feedback)

Customers always rely on their peers or others before they make a decision. Social proof is something a store should earn from a customer through various programs mentioned above. When your existing customers feel trusted and confident with your store he/she will invite their friends to your store. Your customer’s words are significant in attracting new leads, you should take advantage of it.

Reviews are essential for an eCommerce store as customers will develop trust in your store based on a product review. Take advantage of this and request your customers for a review this will make them feel that they have a purpose in your store. You can also reward your customers for writing a review thus cherishing their shopping experience and increasing the chance of customer retention.

Always ask your customers for feedbacks this will benefit you in a couple of ways,

  1. Customers think you value their opinion which will make them feel important.
  2. It gives you a concept of how your customers think and feel about your store.

When customers feel that you value their opinions of your store they will offer an unbound loyalty towards your store and continue being a loyal recipient of your eCommerce service.

Improve your customer engagement

Customer engagement is the activity of interacting with customers to build loyalty and trust towards the store and store owners. The more you increase the interaction with your customers in personal or other significant ways, the higher the chance of them returning to your store and spending more.

A well-engaged customer will always return to your store and even be ready to try new products that you sell to them. But not everyone can be your best customer, so you should employ a few dynamic retention programs to keep your best loyal customers satisfied. Because the best customers are the ones that can help you keep your business steady and stabilize your revenue.

Responding to your customer’s queries is a proven practice to boost your relationship with them. Only with this relationship, you’ll be able to convince them even when they have a negative experience with your store. So, better customer engagement doesn’t just retain your customers but also avoids you from losing your business.

Get personal, every customer has a different opinion and not everyone has the same behavior. It is vital that you understand their behaviors and engage with them personally so you can increase customer loyalty and drive repeated purchases through them. A safe practice is by offering them personalized discounts to have a better engagement and keep them visiting your store.


In this article, we’ve given you the reasons for customer retention and we’ve answered why customer retention is important. The retention ways we discussed above are very simple yet dynamic, by employing them in your stores you can drive repeated purchases through customer retention.

Author Bio
Joel Platini 
Joel Platini
Joel is a content writer that loves to think outside the box. He has an immaculate experience on eCommerce platforms and written articles on customer retention strategies, Shopify app, WooCommerce plugins, etc. Joel is also a whizz in motion graphics as he has a great eye for elegance and finesse.