Low customer loyalty in e-commerce? You are not alone!

Having low customer loyalty, and therefore low retention rates, is probably the most common problem in all of today’s e-commerce. Most e-commerce marketers we meet with all have the same problem, the customers won’t become repeat ones. So, what are you to do to increase engagement, well, increase your engagement of course.

Low customer loyalty is not uncommon, most customers will never shop with you again

But, let us first delete about half of your customers from this discussion. Half of the general population of your e-commerce shoppers are just not yours to own. And, again, this is a generalization, not a rule.

Then there is the other 10-50% of your customers, more typically around 12%, these guys do all the work, meaning they are repeat and make up about 65-70% of your revenue. These are the people that can become truly loyal customers, and fans to your organization.

Find the 12% and make them into rockstars

As an e-commerce vendor, you won’t have too much problems in identifying these people. They should also be pretty easy to put into a separate customer group in your DB. These guys need their own loyalty program, a loyalty program that, depending on their traits, make them really successful shoppers. A successful shopper is one who always feel that they have gotten the best deal possible, or exclusive access to things that no one else gets.

You want to do this because there is a strong possibility that some of these customers might turn into so-called superfans, meaning, if treated the right way, they will become walking PR-campaigns with incredible trust and credibility among their peers, i.e potential new customers to you.

The actions you need to make to evolve your best customers to this level doesn’t have to be costly either. If you think around your specific business, what are some of your organizational artifacts that can be leveraged to create secondary value to VIP-customers?

Maybe, you have a few physical stores, or a design studio? In the case of having physical stores, exclusive events in-store, or giveaways upon the next visit, may be that little extra thing that tips your customer over to becoming a true fan of yours. If you are into product design, why not ask your best customers to swing by and help you design a product, who could really be a better judge of the results?

Engage through less obvious, alternative transaction values

In the case that you want to create an actual loyalty program, there is many ways in which you can separate yourself from the pack of typical rewards programs that doesn’t really provide real value to the customers.

One angle is to, for some campaign, or maybe indefinitely, offer rewards for other types of engagement than just pure monetary spending. At the core of this outlook is the assumption that ANY type of engagement a consumer puts down today IS valuable. Lets say that you are doing a invite-a-friend campaign, what is the actual value of one customer inviting a new customer to your website? Really, its probably worth around 100 USD. So, that is a pretty big disposable sum that you can use in order to create a fitting reward for that action.

All of these tactics are of course actionable with the Pinguin Customer Loyalty Software.

If you want to read more about customer retention and loyalty, just keep on reading our blog, that’s basically all we ever talk about here.