Winning new customers is important for any ecommerce business, but keeping the customers you already have can often be far more valuable.
A customer who has already bought from you knows your business, your products and what to expect. If they had a good experience, they are also much more likely to come back and buy again. Over time, this can make repeat customers one of the most valuable parts of your business.
Increase Customer Lifetime Value
The value of a customer should not just be measured by their first order.
If somebody places an order for £50 today and then returns several times over the next few years, their real value to your business could be hundreds or even thousands of pounds.
Improving customer retention increases this lifetime customer value by encouraging customers to purchase more regularly and stay with your business longer.
This can be achieved through simple improvements such as:
- Good customer service
- Reliable delivery
- Easy repeat ordering
- Personalised offers
- Loyalty discounts
- Useful email newsletters
- Product recommendations based on previous purchases
- A simple and easy-to-use customer account area
- Reduce Your Reliance on Advertising
Advertising can attract new customers, but the cost of platforms such as Google Ads and social media advertising keeps customer acquisition expensive.
Repeat customers already know who you are.
Instead of paying every time you want to generate another sale, you can communicate with existing customers through email marketing, newsletters, account offers and other direct channels.
The more repeat business you generate, the less pressure there is to constantly find new customers through paid advertising.
Create More Predictable Sales
A business relying entirely on new customers can see sales rise and fall depending on advertising costs, search engine rankings, competitor activity and seasonal demand.
A strong base of returning customers can make sales much more predictable.
If customers regularly reorder products, replace consumables, renew services or come back for related products, you begin to create a more consistent flow of revenue.
Understanding buying patterns can also help you plan stock levels, marketing campaigns and future promotions more effectively.
Make It Easy for Customers to Come Back
Sometimes businesses spend so much time improving the process of winning a new customer that they forget about what happens after the first purchase.
Your ecommerce website should make returning as easy as possible.
Features such as saved addresses, previous order history, quick reordering, wish lists, personalised recommendations and simple account login can all remove barriers for repeat customers.
Even basic improvements to confirmation emails, delivery updates and after-sales communication can make a customer more likely to return.
Don't Forget About the Customers You Already Have
Finding new customers will always be an important part of growing an ecommerce business, but your existing customers should never be overlooked.
Improving retention can increase the value of every customer you acquire, reduce your dependence on paid advertising and create a much more predictable source of future sales.