How to Build Customer Loyalty In E-Commerce


how to build customer loyalty in ecommerce

In the crowded e-commerce battleground, you have to win the battle for customers and earn their loyalty to become a profitable site. Your brand will never make it big if you fail to build customer loyalty. For example, the success of e-commerce giant Amazon is attributed in part to its ability to maintain customer loyalty.

 

Advantages of having loyal customers:

  • Increase in percentage of loyal customers results in increased profitability.
  • Loyal customers spread the word to their friends and family, which expands your customer base without additional marketing expenses.
  • Loyal customers buy more compared to new visitors.

 

Today’s customers have more choices that make it difficult to build customer loyalty. They will immediately defect to competitors’ sites if you do not provide them with what they want.

Their return to the site depends on your ability to serve their needs on time, as well as your reliability and dependability.

Here are some of the ways through which you can build customer loyalty for your e-commerce site.

 

Make an Emotional Connect

You need to make the customers believe that you have their best interest at heart. You can do this by giving them individualized attention, by being honest and transparent, engaging with them beyond purchases, never shrugging off their request for assistance, and seeking their feedback on a regular basis.

When customers see that you value them, they will return to buy more. They will also refer your site to others.

You can build emotional connection through your brand story, which the customers can relate to and trust. Your site’s live chat, social media platforms such as Twitter and Facebook, and newsletters can also help build emotional connect, which will only improve customer loyalty.

 

Improve Net-Promoter Score

Net promoter score (NPS) developed by Fred Reichheld enables you to measure your customer loyalty. It helps you to find out customers’ experience and what they feel about your brand. Moreover, NPS enables you to determine whether customers will promote your e-commerce site to their friends and family.

Net-Promoter Score puts customers into three categories based on the score that they give – in the scale of 1 to 10.

  • Promoters: Customers who score you a 9 or a 10
  • Passive: Customers who score you a 7 or an 8
  • Detractors: Customers who give you a score of 0-6

You can send customers a survey form every three or six months to find out whether they are promoters or detractors. Once you find that out, you will be able to work on an effective strategy to build customer loyalty.

You can use tools like Promotor.io, Delighted, UserCompass, HowLikely, and Informizely to get your net-promoter score.

 

Try Before You Buy

Try-before-you-buy (TBYB) is one of the emerging trends in the e-commerce landscape to engage customers. It gives customers an in-store experience.

They can try out different products and brands from the comfort of their homes. It allows them to decide whether they like the product or not before committing to purchase.

The e-commerce sites providing TBYB option are Amazon.com’s Prime Wardrobe, Trunk Club, Stitch Fix, and Warby Parker.

 

Launch a Loyalty Reward Program

You can boost customers’ willingness to return to your site and buy more things by giving them something extra. You can do this by leveraging loyalty reward program. The program also helps forge a relationship and build customer loyalty.

Through the program, you can give your regular customers discounts and rebates, rewards, coupons, free merchandise, and in some cases, first access to newly released products.

And, for your loyalty reward program to be successful, you need to keep it simple, engaging, and economical. Moreover, you can add a surprise element.

 

The above tips can help you turn one time shoppers into loyal customer who not only bring repeat business but also spread good word about it.

 

 

mm

About Sreeram Sreenivasan

Sreeram Sreenivasan is the Founder of Ubiq, a business dashboard & reporting platform for small & medium businesses. Ubiq makes it easy to build business dashboards & reports for your business. Try it for free today!