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Successful Ways to Increase Customer Retention in Your Ecommerce Store

Customer retention is one of the flawless strategies that can help you make your customers stay loyal to your store. Store owners often make the mistake of spending a fortune to acquire new customers because they don’t understand the benefits that a retained customer can bring to their store.

The concept of acquiring new customers might seem colorful but the money you have to spend in acquiring them says otherwise. But if those efforts are targeted in acknowledging the existing customers for their loyalty, you can retain them and drive repeated sales, remember, returning customers spend twice more than the new customers.

Almost every eCommerce store has started to invest its efforts to increase customer retention and it’s time for you to do it too. That’s why we did our research to find out some of the best strategies that can help you improve customer retention in your eCommerce store. So, without further ado, let’s take a look at those eCommerce customer retention strategies.

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What is Customer Retention?

Customer retention might not be new for you, but still, let us all refresh our memory.

Customer retention is an activity performed in eCommerce stores to encourage their customers to continue shopping at their store. The integral motive is to retain the customers by employing various proven strategies and increase sales.

If you are wondering how is it any special than acquiring new customers, then here’s a quick stat for you,

Customer retention statistics

Looks pretty good, isn’t it?

Customer retention has more to it than meets the eye which we’ll discuss in the sections below.

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 and these are the benefits of customer retention.

How to increase Customer retention?

Now that we’ve seen the necessity and benefits of customer retention, let’s cut to the chase and look at the tactics you can employ in your store to actually achieve and improve customer retention.

Customer retention is not a chain reaction to keep repeating itself, you have to invest your efforts and be consistent in your strategies. And only then you can truly build a loyal customer base in your store.

7 Brilliant Strategies to increase customer retention

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

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 eCommerce customer retention strategies used by major stores as it is the best way to keep customers in the eCommerce world.

 Next order coupon

Acknowledge the importance of customer loyalty and encourage them with a discount for their next purchase, this will motivate them to return to your store to avail of that discount. Thus you are effectively driving repeated purchases and you are increasing customer retention simultaneously.

By sending these 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 and push them to the bottom of the sales funnel which is a sign of your store’s effectiveness.

Amplifying your presence with referral marketing

The next best eCommerce customer retention strategies is running a referral program. 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 as it is the best way to keep customers.

Referral program

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 to improve customer retention. The loyalty program is one of the popular eCommerce customer retention strategies in the world. Not just store owners, even customers are looking for the best way to keep customers and you can easily do it using 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 in your store by running a dynamic loyalty program.

Retaining your customers is easy with Retainful’s Referral Program. Effortlessly optimize your referral marketing efforts and foster customer loyalty.


Customers love it when you call out their name or when you do something specifically for them. Personalization will show how you care for each customer individually, it is a good persuasion tactic and nowadays it is the most in-demand strategy used to increase customer retention.

But, there is a common misconception about personalization.

Most people think that personalization is only about including customer’s names in products or coupons, well actually it is much more than that.

You can track your customer’s search history or purchase history and suggest them products based on the data you collected. Using these data you can offer them some exclusive discounts to encourage your customers to drive repeated sales.


You can also send personalized emails or newsletters to educate your potential customers and also to increase your engagement with them. The more you engage with them, the chances are higher towards customer retention.

Personalization gives you a chance to build a strong bond with your customers as it makes them think that you actually care for their presence in your store thus it eventually increases customer retention 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.

Customer reviews

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.

Provide exceptional customer support

Customer support directly influences customer retention. Providing exceptional customer support is key to your business success and also to improve customer retention.

It doesn’t matter how great your store/product is, if you don’t respond to your customer queries or feedbacks, it’ll push them far away from your store and probably to your competitor. You might be wondering, how can I respond to all the queries consistently.

Well, it is simple, just install an automated tool like chatbots that automatically engage with your customers when they come knocking at your door. Leave the simpler queries like updates, delivery details, etc to the chatbots and handle the critical queries by yourself or through a team.

Customer support

Live customer support is a need for an eCommerce store, especially in this digital world. Chatbots can only help you to an extent and from there it is your responsibility to handle your customers well and give them a customer experience that they’ll never forget.

Always, the best way to keep customers and improve customer retention is to keep them happy in the first place and customer support offers the best way to ensure that your customers are satisfied, so don’t miss out on that.

Retainful makes it easy to create, manage, and optimize referral programs that drive results, boost customer retention, and accelerate business growth. Maximize your profits by retaining more customers today.


In this article, we’ve shown you why customer retention is important and the ways to increase customer retention in your eCommerce store. The eCommerce customer retention strategies we discussed above are very simple yet dynamic, by employing them in your store you can improve customer retention and drive repeated purchases effortlessly.

How do you increase customer retention in ecommerce?

To keep customers coming back to your ecommerce store, you should focus on building strong relationships with them. This can be achieved through personalized communication, loyalty programs, and excellent customer service. Additionally, improving the user experience of your website can make it easier and more enjoyable for customers to shop with you again.

What are the five key factors of customer retention?

The five key factors of customer retention are personalized communication, customer service, loyalty programs, post-purchase follow-up, and a positive user experience. By focusing on these factors, ecommerce businesses can build strong relationships with their customers and encourage them to return.

What is the key to successful customer retention?

The key to successful customer retention is to provide a positive and memorable customer experience. This can be achieved through excellent customer service, personalized communication, loyalty programs, and consistent follow-up to ensure customer satisfaction.

What is the good retention in ecommerce?

A good retention rate in ecommerce can vary depending on the industry and business model. However, generally speaking, a retention rate above 30% is considered good.

How do you attract and retain online customers?

To attract and retain online customers, it’s important to have a user-friendly website, offer high-quality products or services, provide excellent customer service, use targeted marketing strategies, and incentivize repeat purchases through loyalty programs and special offers.

What improves customer retention?

Improving customer retention involves delivering high-quality products/services consistently improves customer retention. Excellent customer support, seamless buying experience, and personalized communications also contribute. Offering incentives or loyalty programs can encourage repeat purchases.