Customer Retention

The road-to-success in Ecommerce thrives in strategic planning and persistent efforts to retain customers in businesses. If there is a strategic plan to overcome every obstacle, then only you can succeed in making your business from good to great. If you have a clear road-map for your business planning then you are more likely to scale up your profit.

Word of mouth plays a really important role in retaining your customers in Ecommerce business. In this fiercely competitive landscape, retaining customers is the key for sustainable development of your business and to craft better chances of profitability.

Building trust among your customers stands first for the best establishment of your business background. Store owners find it really hard to retain customers because of the various challenges that they need to face. Therefore, it is crucial to understand these challenges and adapt the best practices to overcome this trial-net.

• 1. Challenges faced by businessmen in Ecommerce customer retention
• 2. How to build a solid customer retention strategy
• 3. Why do businessmen fail to retain customers?
• 4. Role of building a strategy in customer retention

Understanding the Challenges Faced by Businessmen in Customer Retention

There are not one but many challenges faced by the store owner in making a high-end ecommerce business thrive. The major roles are played by the strategies built to make the customers retain. Having loyal customers is what makes the business thrive long term and generate increased profit. By understanding these challenges, entrepreneurs can build long term strategies that can foster long term customers. Here are few common challenges faced by almost every business owner out there-:

• 1.  High Competition- there is no doubt that with digital marketing flying over the hills in 2023, the scope for competition has also increased. According to recent research, 86% of the customers are likely to shift brands if they find a better offer somewhere else. Customers do swap if businesses do not hold them properly leading to customer abandonment. Customers have numerous options at their fingertips, so it is your duty to fill them with great deals and innovative ideas which keep on building their trust in your brand and make them stay.
• 2.  Lack of personalized offers and recommendations-: Research shows that 91% of customers tend to shop with brands who offer personalized offers and recommend products as per their brand review. Customers today seek personalizations and custom products. However, many brands still struggle to provide customers as per their wishes. Setting a higher bar of personalized customer algorithms can make you leave your competitors behind and offer high-end speciation service sought by your customers.
• 3.  Customer Expectations: Even with well built infrastructure, dedicated teams, hostile approach, a survey indicates that about 75 billion to 1.5 trillion poor customer feedback services are obtained. With the rise of major E Commerce websites customer expectations have soared. Customers expect hassle free service, quality products, and brand recognition to meet their expectations. It can only be achieved through a well-sorted strategy to assemble everything in its place.
• 4.  Price sensitivity: Price! Price! Price! …What attracts more loyal customers? A well sorted price range that comes in their budget. If your brand is offering quality products and services at reasonable prices then, you are more likely to get more loyal customers.
• 5.  Going with the trend: Customer’s choice and preferences are constantly evolving, it becomes a challenging task here to keep up with their flow. Customers tend to move forward towards brands that keep the latest trend. Retailers who fail to keep up with the evolving trends tend to lose more customers each passing year.

Building a compelling customer retention strategy

Amist of all the challenges that come forward for the Ecommerce businesses, building a strategy that proves to be efficient is very important. According to censuses, customer retention rates if increased by just 5% results in company profit for about 25% to 95%. Thus, to implement customer retention it is important to build a solid strategy that results in long term customer-loyalty.

Key strategy that results in customer retention

• 1.  Marketing Campaign:   customer data can be of use to target the audience by creating personalized marketing campaigns. Customizing your personalized campaigns and sending to the segmented audience can leverage more audience towards your business. Automation tools can be used to deliver personalized content to the customers which can initiate their interest in your brand and furthermore, generate trust in your brand’s name.
• 2.  Loyalty Programs:   Robust loyalty programs that generate trust with customers can be a necessity for retaining customers in the long term. This can be achieved through running programs such as offering incentives, discounts, elusive offers and several deals that can provide a seamless experience for customers.
• 3.  Customer Service:   Customers run towards businesses that provide profound service. Excellent service provider companies retain the most customers. Delivering exceptional services to customers by promptly addressing queries, concerns and complaints.
• 4.  Hiring expert marketers/ content creators   Customers are attracted towards the content that you post. They first visualize your content, judge you and then decide whether they want to purchase from you or not. Quality content can be really intriguing in building a high-end strategy for retaining customers.

Why do businessmen fail to retain customers

Customer loyalty is one of the most important aspects of running a profound business that generates leverage for the Ecommerce brand. A business cannot become successful without establishing a separate base for its customers. Customers validate the business, up scale the brand and provide backbone for the business to thrive.

Gaining customers and brand loyalty is as important as other business entities. If customers are retained and regularly engage with your business evolution then only your business can thrive with the next generation. However, many businessmen fail to build a solid strategy that can help them survive with the regulation of technology with the passing time. This variation can arise due to many reasons that result in failure of the business brand. Here are a few common mistakes that businessmen generally make which can result in the brand demotion.

• 

  Lack of Technology

  Technology acts as a catalyst between the customers and business brand. Lack of technology can result in interdicting your brand and losing your retained customers. By introducing various tools and latest algorithms you can not only promote your brand better but also leverage more loyal customers. Technology help is providing better service, finding accurate data, showcase distinct content that promotes your brand and automates processes.
• 

  Ignorance of customer appreciation

  This can happen if you are not appreciative of customer feedback. If you engage yourself with customers using various tools and latest technology, then you can have a profound business background. Almost about 53% of the people tend to switch to another company or brand if they feel ignorance towards your end, thus it is really essential to increase engagement with customers and generate more conversations with them to build a better understanding and trust between them.
• 

  Lack of proper training

  If your business team is not knowledgeable as to what the customers seek, then they cannot retain customers. Running a high-end business requires specialists that can engage with customers and provide them with custom solutions. If the staff from the brand’s end is not responsive then it is obvious, customers will not retain.
• 

  Improper advertisement

  If you are not able to showcase your brand properly, the product you are selling then, the service you are providing then it can lead to improper advertisement of your brand. If the brand’s advertisement is not proper then customers will not show interest in your business anymore. They feel the not required use of your services or brand anymore or shift to other companies with better advertisement and counseling processes.

Role of building a solid strategy in customer retention

Just like other valuable assets of running a brand business, customer retention is one of the valuable keys. This can be achieved through various measures but a long term plan requires solid-unbreakable strategy beforehand. The path to success lies with the pre-planned fortune that you carve considering all the measures that can negatively affect your business. One of these is losing valuable customers. Thus, it becomes the utmost sincerity to take proper measures and build strategies that can converge your business into revenue generating outcome.