Retention 101: The Value Of Loyalty in E-Commerce

Repeat customers are important! Don’t forget about someone after that first sale. A repeat customer is more likely to convert with every purchase they make. After the first purchase, a customer has a 27% chance of returning to your store. After the second purchase, the odds are now 2 to 1 that they will buy again! Fostering the return of first-time buyers is a sure-fire way to increase your customers lifetime value.

So, how do we increase return customers?

There’s any number of ways, but here is where we at Upfront Digital are finding the most success in getting customers back that second, third, and fourth time. The key? Making sure the customer knows how valued they are.

1. Follow up their first purchase with a thank you email, and give a little something away. Be it a free product, or a discount on their next purchase, an extra gift is sure to bring someone back.

2. Reward your most loyal customers! You may have a customer who has bought off your store 10 times, but you’ve never spoken to them! Get in touch with these customers and thank them for their continued custom.

3. Create a customer rewards program. A points system or tiered rewards system can gamify the shopping experience.

4. Retarget purchasers with custom ads! Someone who has already purchased will need a different kind of ad to someone who has never purchased before. They are “over the line” already. What will it take to bring this customer back? Coffee needs re-stocking, software need updating, and outfits need refreshing. 

As we can see above, its all about personalising the experience and making sure your customers feel like they are valued. We all go back to the stores we feel like appreciate our business.

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About The Author

Marc Murray

Marc Murray

Marc is our lead designer, and regularly writes about design, marketing and everything else Upfront gets up to.

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