Wednesday, October 20Digital Marketing Journals

How to retain customers on your Shopify store | by Engati | Oct, 2021


Engati

Most companies focus more on acquisition than on retention. For a lot of them, that’s a mistake. Unless you’re just starting out, you should focus on retaining existing customers.

There are many metrics that you could track to measure customer retention. Here are the most important ones:

1. Repeat purchase rate

This refers to the percentage of customers who made more than one purchase from your Shopify store during a specific time period out of the total number of customers who made purchases from your Shopify store during that time period.

2. Purchase frequency

The purchase frequency helps you figure out how often your customers make purchases from your store. Your purchase frequency could vary depending on your industry and the type of products that your store sells. For example, stores selling fast-moving consumer goods would have a very high purchase frequency while stores that sell consumer durables would have a low purchase frequency.

3. Average order value

Your average order value is the amount of money that your customers spend on every purchase that they make at your Shopify store. Your average order value could increase because of your customers buying more expensive items or even because of them buying multiple products (or many of one product) at one time.

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4. Chatbot Vs. Intelligent Virtual Assistant — What’s the difference & Why Care?

4. Customer lifetime value

Your customer lifetime value is the amount of revenue that you will earn from a customer over the entire amount of time that they do business with you. If you increase your customer retention, you will end up increasing your customer lifetime value. There are many complex formulae that you could use to calculate your customer lifetime value, but let’s make it simple. Here’s the easiest, most straightforward formula that you could use.

1. Respond to customer queries quickly

According to Forrester Research, 53% of customers end up abandoning their carts if they don’t get their questions answered instantly. And this isn’t just limited to new customers. Even if your customers have made purchases from your store earlier and they came back, they’re liable to abandon their cart and even stop doing business with you if you don’t answer their questions quickly.

2. Have a better return policy

Making your return policy more lenient would cause your customers to trust you more. It’ll make them feel like your offerings must be high quality if you have such a great return policy. That trust will cause them to stick with you and keep doin business with you for a long time.

3. Use Shopify Analytics

Shopify analytics helps you understand your sales trends and shows you who your recurring customers are and what they are buying. It even shows you what items they are buying together, which could allow you to bundle those items and offer discounts on them.

4. Personalize product recommendations

You can improve your customer experience by displaying the products that your customers would be most interested in across your Shopify store. Displaying product recommendations based on your customers’ preferences would make it seem like your catalog matches their needs and tastes. It also creates a better customer experience because they don’t have to spend their time hunting for the products that they are interested in.

5. Engage your customers in their language

If you can’t engage and support your customers in their language, they aren’t going to stick with you. They just won’t trust you as much if you only provide support in English while they speak other languages. They’ll look at you as an outsider and that’s not good for customer retention.

6. Leverage customer accounts

Creating an account would subconsciously make your customers think that they are going to make more purchases from your store in the future. That’s essentially them justifying the act of making an account, even if they didn’t initially intend to make future purchases from you.

7. Create a loyalty program

A loyalty program is a time-tested way to increase your customer retention. The Harvard Business Review even shows that companies with strong loyalty programs tend to grow their revenues 2.5x faster than their competitors.

8. Allow customers to subscribe to products

If you sell products that your customers would typically need to purchase at regular intervals, you don’t want to give them the opportunity to discover your competitors the next time they need to make a purchase.

9. Create a feedback loop

After your customers make a purchase, you want to lay the foundation for a good relationship by asking them for feedback and even requesting a review. Asking for feedback (and acting on it) shows your customers that you care about their opinions and makes them want to stick with you longer.

10. Go omnichannel

An omnichannel approach makes life easier for your customers and allows you to reach them on all the channels they’re hanging out on. Deploying an omnichannel Engati chatbot for your Shopify store even helps you reduce customer effort because they’ll be able to get support, check their order status, and do much more directly over WhatsApp, Facebook Messenger, Telegram, Instagram, and 10+ other channels instead of having to visit and navigate through your website.‍

11. Wish them on occasions

If you collected information about your customers like their date of birth when they set up an account with you, you could send them a message to wish them, along with a gift card or even a small gift for your most loyal, high-value customers.

12. Improve your user experience

A bad user experience would cause you to lose customers. Your store should be easy to use and should require as little effort as possible for your customers to make purchases. Look at analytics and heat maps to identify issues with your store and fix them.

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