NL 7 Strategies for building a loyal customer base͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ Happy Friday ya’ll! 👋Think about a company that goes above and beyond for its customers. Who comes to mind first? 🤔If it's brands like Nike, Apple, Amazon, and Walmart, there's a reason why—they all have a (very) loyal customer base.According to a 2023 Brand Keys study, companies like Amazon and Apple rank highest in customer loyalty thanks to their use ofcustomer retention strategies.Good news is that with the right tools and tactics, you can also build a loyal customer base—and we’ll show ya just how to do that. Before we get into the nitty gritty of customer retention strategies, our Sr. Marketing Designer here at Sendlane is kicking things off with some email design wisdom. Put this approach in to action when designing your next campaign and see how it makes a difference in elevating your email strategy. Now let’s get into the art of retaining customers. 👇 7 Effective eCommerce Customer Retention Strategies What are the Benefits of Retaining Customers?You don't need us to tell you that customers are the backbone of your business.But what may surprise you is that keeping customers around isn't just good for business—it's great for your boosting your bottom line. Statistics show that retained customers spend more than new customers. In a study from Bain & Company, apparel store customers spent 67% more after shopping with a brand for over 31 months compared to the first 6 months.Then there's the cost of acquiring customers. 💰The cost of acquiring new customers varies depending on the industry, but Shopify research shows it can exceed $500 per year. A solid customer retention strategy can help you offset acquisition costs and increase profits.From rewarding loyal customers to optimizing marketing campaigns, there are lots of ways you can keep customers happy so they spend more at the checkout.How Do You Measure Customer Retention Rate?The benchmark for eCommerce retentionsits at just under 30%.It's simple to calculate how many of your customers are churning:# of customers over a month/quarter/year — # of new customers acquired during the same timeframe Then, divide this number by # of customers at the start of the timeframe. Let's say your store had 370 customers at the end of the month, and 150 of them are brand new. Before the month started, you had 410 customers.370 – 150 / 410 x 100 = 53.6% retention rateNow that's a retention rate worth aiming for! 🥳7 eCommerce Customer Retention Strategies to Use in 20241. Ramp up promotional campaigns to boost purchasesBelieve it or not, your customer base loves hearing from you.According toStatista, 49% of customers like it when promotional emails from their favorite brands land in their inboxes weekly. And 82% of shoppers will use a coupon or reward within a week.We love this promotional campaign byThe Art of Play: It's got everything to make its customers feel special:A coupon for 10% off to get their customers to the checkoutA warm thank youfor subscribingProduct recommendationstailored to their unique interestsThis promotional campaign connects with customers using personalization and a coupon code. What's not to love?2. Reward loyal customers (so they reward you back)We've already discussed repeat customers spending more money than new customers—so reward them with exclusive discounts, free shipping, or even a surprise gift with their next order.This won't just make your customers happy. It's also good publicity because they'll talk about your brand with family and friends. Just look at the H&M Club loyalty program: Customers are rewarded with points for their purchases and can exchange them for discounts on items, gift cards with partner stores, and even exclusive hotel stays. The club also has quirky ways for customers to earn points, like recycling garments and bringing their own bags into the store to encourage more sustainable choices.3. Nurture first-time customers into long-term relationshipsNurture every customer that comes your way.First impressions are big. Interacting with customers on social media channels, live chat, or email helps build a meaningful relationship with your brand and shows them you really care.You can do this by:Liking and replyingto comments from customersSharing recommendationsfor productsOffering exclusive discountsand competitions to social media followersReplying to messagesquickly and answering any questionsThese small things can go a long way to building relationships with your customers. You can even leverage user-generated content by reposting customer images on your Instagram and TikTok to increase engagement.4. Create personalized and valuable content Whether you’re posting on social media or sending newsletters, you should add value every time you send customers content. Emails triggered by personalized campaigns generate75% more revenue than an email blasted to an entire list.This is usually down to how well your list is segmented:Status: If they're a repeat customer or are yet to buy anything (those virtual window shoppers!)Opt-in source:Did they hand over their email for a discount or respond to a product launch? Every customer has different interactions with your brand; segment them accordinglyBuying behavior:Some customers have a high LTV, while others will only buy stuff from you at Christmas. Send them content that matches their past purchasing behaviorBy segmenting your audience, you can personalize the content you send to your contacts, such as sending a welcome email to first-time buyers or a discount code to repeat customers.5. Optimize digital marketing campaigns across chosen channelsImplement a strategy focused onretaining existing customers rather than generating new leads.A successful digital campaign covers every corner of your online presence:Website: A clean interface, exclusive discounts, and pop-ups to increase customer spendsCheckout: A user-friendly checkout with integrated payment options to delight customersUX: 79% of customers purchase products on their smartphones, so make sure your site is mobile-friendly with responsive designsForms: Simple forms for customers to complete their transactions. Simple logins or guest checkout can cut friction in the buying processAnd then there's the big one—social media.Thanks to the rollout of features likeInstagram Checkout, TikTok Shopping, and Facebook Shops, brands can now sell products directly from social media feeds.If a customer sees an item in a post they want to buy, all they have to do is click on it and complete the purchase on Instagram. Here's an example from@colourpopcosmetics' Insta feed: The customer will tap the product on the image to reveal a buying link. They're then redirected to Instagram's online checkout, where they complete the purchase.The transaction takes under a minute and gives customers a quick and easy experience with a brand.6. Prioritize support and service to win over customersBuild a dedicated customer service team that lives and breathes your brand's mission.Customers expect to be kept in the loop when they buy something from you, so prioritize communication and support. Look at howBoohoodoes this: This is another great example because it:Mentions the customer by nameand lets them know their order is on its wayGives a timeframefor when it'll be delivered by and confirms the customer's addressIncludes a tracking linkso the customer can track the orderThe email also includes a breakdown of the items in the order, and a simple FAQ helps customers answer any questions. But even with an email like this, brands should be realistic—things can (and will) go wrong during the order fulfillment process.7. Stay in touch with SMS marketingSMS marketing is wildly overlooked, but it has the highest open rates of any marketing channel. Stats show SMS open rates sitting as high as 98%, and 90% of people open a text within 3 minutes after it lands in their inbox. Prioritize your VIP customers and build an SMS marketing list to send them exclusive deals, first dibs on new product launches, and personalized product recommendations they'll love. This message fromPrincess Polly is a great example: This SMS has everything:An imageto grab the customer's attentionA cheeky discountoffer that sparks curiosityA hyperlinkthat takes the customer straight to the siteSMS is an effective way to make sure every customer on your list knows about a new product or sale. Emails sometimes get buried, and social media feeds get scrolled past. But if an SMS lands in your customer's phone, there's a really good chance they'll read it.Keep your Customers Happy and They'll Keep Coming BackIt's easy to get customers. It's harder to keep them and turn them into fans of your brand.Successful eCommerce brands take care of their customers.Happy customers are targeted with products they love and and are nurtured post-purchase. Small touches like optimized checkouts and fulfillment tracking go a long way to keep your customers satisfied.Build customer relationships and invest inretention strategies.Because once a customer buys from you and trusts your brand—they stay with you.Thanks for joining us for this week’s DTC Rundown!Have a great weekend and we’ll see you next time. 👋 Terms & ConditionsSupportBlog Sendlane 2712 Loker Avenue West #1107, Carlsbad, CA, United States, 92010 To update or remove your contact information please Manage Your Subscription.