DENVER, CO – Online merchants understand the competitive nature of ecommerce, at least to some degree, and many busy themselves with such tried and true techniques as blog posts, community forums, press releases, search engine optimization (SEO), social media storefronts, and even targeted pay-per-click advertising tied to high-profile and high relevance key word searches. Some, especially those merchants whose online sales are tied to a locality or region, even engage in such old-line marketing strategies as print advertising, radio and television spots, direct snail mail, and live networking through business and civic organizations.

All these things are not only great strategies, but absolute necessities in today’s online environment. But – they are all pretty much directed toward gaining new site visitors, new customers, and generating new leads.

What about the customers already in the fold? Many businesses – old-line brick and mortar and ecommerce stores alike – take their current customers for granted in their quest for a larger potential customer pool, and yet the existing customer already represents an even more valuable asset: a larger pool of sales.

Customer churn has always been a business problem for any operation where a competitor opened up down the street – or indeed these days down the virtual road. Trouble is, the existing customer is often treated poorly, and given the opportunity to make a switch feels no loyalty at all. How many magazine companies offered new subscribers a much lower rate than the long-time loyalist? Or new cable television subscribers getting those kick-butt deals with the asterisk that it’s only good for one year? Sure, you have to do some marketing to bring in new blood, as it were, and a high percentage of them just might stay on when the rates rise to existing-customer levels. But still – long-time customers enjoy being treated to a special now and then as well.

Many online merchants do kick up their customer loyalty and retention programs when the chips are down, like when their lead generation activities taper off.  But if the object is to make a profit – which should be obvious – then, as the old saying goes, a bird in the hand is worth two in the bush even when lead generation is pumping along at a vigorous clip.

Unless the given online store has a particularly unique product, that is one that can’t be obtained anywhere else, then customer churn is going to be a problem. The Internet, what with all of its instant search capabilities and all the newer whiz-bang price comparison software and deal searches for such things – very important things – like free shipping, is custom made for the deal-oriented shopper and that is pretty much everyone these days. The customer bought from ecommerce site X because they offered a “New Customer Discount” or “Free Shipping on 1st Order” deal, and they are just as likely to switch to another website for the same product to get the same sets of deals, and so on. After all, let’s be honest: a customer lured by a deal is a deal hound and by nature fickle. 

There are, however, things that the prudent ecommerce merchant can do to keep current customers in the fold and even increase their buying habits. Here’s some of the best:

• Customer service. Sure, most ecommerce merchants have customer service in place – or so they think. The wise merchant, however, continually monitors customer complaints and comments, resolves the issues with particular customers personally and post-haste, and adjusts the CS systems to alleviate and eliminate future problems. One of the biggest reasons cited by website shoppers in abandoning shopping carts is frustration and annoying pop-ups that slow down the check-out process. Customer service should monitor the flow and make adjustments.
• Personal service. What with all of the social networks and internet forums, getting a bad reputation is a bad thing. But sometimes, you’re just dealing with a chronic complainer. If a problem arises, investigate not only what went wrong, but the sales history of the person making the complaint. In some cases, a personal telephone call or email is called for and will be unexpected and appreciated. Depending on the level of relationship, rebates the shipping costs or throw some other “We’re very sorry” deal on the table. In other cases, doing nothing may be the best course of action.
• Navigation. See above. Slow navigation on a site causes customer frustration and abandonment. The site might work fine in Internet Explorer, and then get sluggish in Firefox – or worse, is terribly slow for mobile devices. Constantly check how the site works and navigates in every conceivable browser environment and take steps to make sure it works as advertised across all platforms.
• Search. All too often the on-site search functions that come standard in shopping cart and ecommerce software platforms is, well, substandard. They only search defined categories rather than the entire site. Merchants can beef up definitions – keeping track of search queries is a good place to start – or look to newer search software that goes beyond definitions.
• Email and deals. It is naturally assumed that current customers have provided their email addresses as part of the check-out and order confirmation process. This is a great arena to lessen customer churn. Email random deals – e.g. 10% off your next purchase, or free shipping on next order – and beef the deals up for customers who haven’t returned in some time. A “Customer appreciation sale” is another good idea – an email campaign making it clear it is only for current customers. Obviously, there’s a wealth of opportunity to be taken advantage of with customer emails – but don’t abuse it; bugging them too often may turn them off. Also, email campaigns to current customers can be customized – where women see only women’s apparel, and men men’s, for instance – based on previous shopping history.
• Like Us on Facebook for Special Deals. Ask buyers to “Like Us” on Facebook and the equivalent on other such social media sites, like Pinterest, where merchants can then post exclusive deals and specials.
• Apps. Many merchants have created apps for smart phones and tablets that are essentially short-cuts to the website or a particular place on the site; e.g. the product page for printer inks and toners. This not only makes reordering easier – which is an appreciated convenience for the customer – it also keeps the existing store front and center on the mobile device which is an advantage over possible competitors.
• Virtual loyalty cards or points. A lot of brick-and-mortar retailers have loyalty cards that accrue points for discounts, like buy 9 dozen doughnuts and get the 10th dozen free. This works well in the virtual environment, as well, and it is a sales driver that compels shoppers to buy so they can achieve the reward or the deal.
• Shipping. Shipping costs have become quite a battle ground in the ecommerce world, and customers now routinely calculate them into the overall cost when conducting price comparisons. If there is a charge for shipping, slip a “Free Shipping On Next Order” coupon with a code into the confirmation email or the package itself, perhaps with a deadline which will spur a quicker follow-up purchase. Plus, it’s an unexpected – and appreciated – gesture that will breed customer loyalty.
• Ask for opinions. Both satisfied and unsatisfied customers will offer up valuable information – if asked. Many ecommerce merchants email regular questionnaires to customers seeking information about their experience, what other products they might want to buy from that website, etc. Including a coupon for a discount for those who respond will increase the response rate – and just receiving the inquiry will be appreciated.
• Cross promotions. This won’t work for every product or every ecommerce site, but where it can be worked out offering discount coupons or codes on something unrelated, like hotel rooms, rental cars, rounds of golf, drinks and appetizers at a restaurant, etc., is a grand gesture that will make the customer remember where they got the deal. Usually, such deals are for a minimum purchase level, and of course the merchant will have to contact the deal providers to make the arrangements. So, for instance, if the site sells luggage, obviously to travelers, then a rental car company may be interested in swapping deals.
• Know your customers. You know a lot about your customers with just basic information, like where they live, so put it to valuable use or at least limit the superfluous. For instance, if you sell apparel, you probably don’t want to blanket the country with a deal for -10-degree down jackets; Floridians probably won’t buy and won’t care. You can target messages regionally, by gender, or if you’re really ambitious, you can customize messages to each individual.

While it is important to keep up the leads for new customers, it is doubly important to keep a current customer coming back for more. Marketing may focus on creating new opportunities, but customer service should involve a concerted effort to ensure the current customer is – and remains – a repeat customer.

Unleaded Group is the Rocky Mountain West’s premier website design and development agency, with a particular focus on building high-quality, custom ecommerce websites with a variety of platforms, modules – and years of experience. Call 720-221-7126 in Denver or toll-free 855-865-3233 for complete details.