Ecommerce loyalty – The drivers behind increased customer loyalty

Ecommerce loyalty – Looking into drivers behind an increasingly important success-factor

As E-tail becomes a naturally saturated market, customer loyalty becomes key. But how exactly do you drive customer loyalty?

One of the most popular and simple methods for bettering key customer retention & loyalty KPIs is to setup a rewards program, also known as a loyalty program or customer club.

Create an ecommerce loyalty program

Loyal customers represent the majority of most ecommerce companies revenue, around 67% of all purchases are generally made by these customers. It is also interesting to note that those customers in general only represent 12% of the full customer database.

So, naturally, one of the most simple things to do in order to increase KPIs such as RPR, is to setup a loyalty program. A loyalty program leveraging individual incentives gives you a clear competitive edge as it looks after that 12% and hopefully grows that specific sub-audience.

The ecommerce loyalty program becomes especially important when you are one out of five sites that sell the exact same thing, at the exact same price point and with similar shipping. A very common situation in e-tail.

The customer journey is extremely important

Related to the section above, ecommerce loyalty also derives from creating the best possible on and off-site customer journey. This of course includes the loyalty program, but extends throughout the entire shopping experience. There are loads of stuff that can be tweaked in order to up the customer experience.

Off-site factors such as ad relevance can always become even more optimized, payment methods could be widened, on a basis of what exact solutions the target groups prefers, and so on. The most important factor to remember however, is that what ultimately makes your conversion rates go up is very much individually related to each and every ecommerce site and audience. Some sites might just need a bit of a CRO tune-up, to optimize sales funneling, while others need far more work.

I would personally recommend that external consultants take a look at your customer flows, for starters, just to shed a bit of light on some things that you might not have noticed before. You are probably missing out on some key customer insights, despite performing complex regression-analyzes 🙂

Make returns smoother!

Returns of goods have long been a pain point for e-tailers. Luckily, there are many solution providers working on making the return-process the perfect opportunity to convert unhappy customers into fans. I personally don´t have a lot of experience in the whole delivery and returns-section of ecommerce, but i have met with Returnado CEO Haider, and that guy seems, to me at least, extremely competent within the returns-field.


To summarize, there is a lot of factors that drive ecommerce loyalty. Above is a few that I think are very basic and necessary to keep in mind. Feel free to contact me or any of my colleagues in case you would like to discuss the subject more in-depth 🙂

Thomas Jonasson, CMO, Pinguin