Customer Loyalty In eCommerce: A Comprehensive Guide

Customer Loyalty In eCommerce


What exactly makes your customers abandon your brand and choose your competitors? Probably not only the reason for the product. Customer loyalty in eCommerce determines your cost and profit. Research has found that increasing your customer loyalty in eCommerce by 5% can increase your profits by 25%.

So how do you keep these loyal customers? This page can help you keep those customers coming back and help you unlock wealth.

Customer loyalty in eCommerce refers to the customer’s preference for the company’s products or services. And due to the influence of quality, price, service, and other factors, long-term repeated purchases.

You know that losing customers is expensive. Not only do you need to re-retain those existing customers, but you also need to spend money to find new customers.

On the contrary, improving your customer loyalty will help you stabilize the consumption of this part of people. And the more loyal customers you have, the less you have to worry about acquiring new customers.

So read on to learn how loyal customers can help you bring in new customers and increase customer lifetime value and repeat purchases.

Benefits of Customer Loyalty

What is the difference between customer loyalty and customer retention?

Customer loyalty
Loyal customers will choose your online store and brand for a long time.
They not only buy from you but also usually recommend you to others.
They may forgive you for making occasional mistakes.
Customer retention
Retained customers are short-lived.
They are willing to buy from you repeatedly but they turn when your competitors offer them a better deal or an easier eCommerce experience.

The Benefits of Customer Loyalty

Customer loyalty in e-commerce is an e-commerce marketing strategy that grows exponentially once you invest in it.

Loyal customers are cheaperData shows that acquiring a new customer is five times more expensive than retaining an existing one.
Loyal customers bring free advertisingThe best ads are for loyal customers. They will directly or indirectly convey their pleasant consumption experience and experience to the people around them. Invisibly doing free advertising and publicity for your business and brand. This effect is far better than a huge advertising investment, and it is free.
Loyal customers spend moreLoyal customers were more likely to try new products than new customers, and their expenses increased by 31%.
Loyal customers will be happy to try other products of the enterprise, which makes cross-selling successful, thus greatly reducing the enterprise’s business risk.
Reduce Cost EffectLoyal customers can reduce the cost of promotion such as advertising, public relations, publicity, and other promotional expenses and reduce their operating and management costs by means of repeated purchases, publicity, and recommendation.

What is an eCommerce Loyalty Program?

Loyalty programs are the best way to connect with your eCommerce customers. A loyalty program is a part of customer relationship management. As a commercial means, its main purpose is to attract the most valuable customers to the enterprise, namely loyal customers.

Loyalty programs are an important step in building your customer loyalty in eCommerce. Having a customer loyalty program can encourage customers to buy more and increase your sales. And in the long run, they can save you money and also help you attract new customers.

5 Customer Loyalty Program Ideas

Giveaways.
Shoppers love free stuff. You can give away something related to the product your customer purchased, or something they like.
Offers and discount coupons.
Some preferential strategies: such as buy one get one free, or discount coupons. You can invite customers who are members of your loyalty program to participate in this campaign. Trust me, people will sign up on the spot.
Free shipping.
Free shipping is the biggest motivator for consumers to place an order online. You can include shipping with the item, but label it as “free shipping”. You’ll have double your sales than other stores.
VIP privileges.
This is a marketing strategy that many big brands do. The purpose is to make your customers feel different. By giving VIPs early access to new products, VIP limited edition products, and other activities, customers feel that they are getting more benefits.
Shopping points.
The equivalent amount spent by customers accumulates into points, which can be used for discounts or free items. This will increase your loyal customers spending in your store.
Benefits of Customer Loyalty

How to Build Customer Loyalty in eCommerce?

Customer loyalty is changing every day. Today, customers have too many ready choices. Customers can change products or suppliers without your knowing it. Therefore, you need to understand and learn how to build customer loyalty in eCommerce.

1

Establish a Consumption DatabaseIn network marketing, enterprises can use network technology to establish customer information databases.
Store the relevant information of customers who have purchased enterprise products or services and potential customers who may purchase enterprise products or services in the enterprise database in the enterprise database. Then use data mining and other technologies to explore customers’ consumption needs and consumption psychology.

2

Enhance Customer SatisfactionIt is necessary to improve the business processes of enterprises to a certain extent, so that enterprises can quickly improve products or services to meet customer requirements, thereby creating more value for customers.

3

Carry Out Membership MarketingMembership marketing is a very successful way to cultivate customer loyalty in eCommerce. Its essence is to organize a group of people with common interests or consumption energy by giving members additional benefits (such as discounts, gifts, activities, etc.), so that they can not only strengthen communication with the enterprise but also exchange consumption experience with other members.
Over time, this organization will make members a sense of participation and belonging, and then develop into customer loyalty in eCommerce.

4

Become a Problem SolverThe best way to do this is to be proactive when customers have problems or questions. Even if you can’t answer or solve the problem right away, you can ease their concerns and come to an agreement on how and when to solve the problem.
As long as you treat it positively, customers will feel valued.

5

Establish Contact with CustomersShow customers how well the enterprise knows them, and they will feel that they are the center of your business area.
When talking with them, especially when helping them, use the word “I” more, so that customers will feel that they are talking to a person, not a company or an automatic reply machine. For example, “I will handle this”, “I can do it”, “I’m glad to help you” and “Thank you for letting me help”.

6

Make a True CommitYour best bet is to always be realistic about your customers. Tell them what you could ideally do, explain what might interfere with it, and how you would avoid it.
Don’t be afraid to tell customers “we can’t do it.” As Fleming puts it, it’s not the same as “we can’t help you.”
You can build their confidence in you and your business by helping them find the solutions they need—whether it’s a solution you can provide now, a solution later, or through other channels. Clients appreciate honesty over dishonesty.

7

Give them Professional AdviceWhether you are engaged in sales or service, you should be an expert in your products or services. Share your insights in these areas with your customers and provide them with new ideas on how to work, run a business, or improve their lives.

Conclusion

Facing rising customer acquisition costs, loyal customers are significantly more profitable. They are the biggest driver of your eCommerce business sales. And do you want to get more repeat customer? If you don’t want your most valuable customers to abandon future purchases, contact us now, Honest FulPhilment knows what your customers want and provides a better customer experience that keeps them coming back to your store to buy more.


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