Start and grow your eCommerce business

Importance of Customer Retention in E-commerce

Customer Retention in E-commerce

Customer retention is the process of converting a buyer into a regular customer of a brand for repeat sales. It prevents a customer from switching its current brand. Customer retention is essential for every business. However, it is easier said than done. To learn about the importance of customer retention in e-commerce and easy ways to customer retention, go through the complete article.

Behavior of customer

It is impossible to retain customers if you are unaware of their behavior and interest. Several factors influence the behavior of a customer.

Types of consumer behavior 

Routine buying 

There are some aspects where consumers don’t care about brands much. Generally, they buy what has been used in their families for a long time. This behavior exists mainly in the case of daily routine products. A person will use the same salt brand for decades unless the brand opts for significant alterations. He will not think of replacing it with another brand.

High involvement buying

The consumer has very few product choices in this category. Minimal differences are observed between the alternatives. The customer tends to buy without much research. 

Diverse buying

When a consumer has multiple options for a product, he sometimes tries all the products out of curiosity. He may also switch products due to dissatisfaction with the current brand.

The benefits of customer retention

Retention is more effective than acquisition

To acquire a customer business requires a series of activities that demands enormous costs and time. Customer retention focuses on developing better relationships with the existing customers with the objective of repeated sales. Customer retention can directly increase the lifetime value of customers. If a new customer finds the product suitable and appropriate, then repeated purchases can be expected.

Customer loyalty

It is human behavior to share its experiences among acquaintances, whether good or bad. Word of mouth is the most effective marketing tool for a satisfied customer base. The best part is businesses don’t have to spend a single penny on acquiring new customers. Loyal customers can help a brand in customer acquisition easily and quickly. Hence a brand must take care of its image.

Beat competition

A buyer comes in contact with the end number of products and services prevailing in the market directly or indirectly. The vast number of alternatives available makes it easier to lose customers than to acquire. Coca-Cola has acquired a 45.9% share in the U.S., even though many soft drink brands are available. This massive market share is attainable only when a company has built trust and its brand among people. 

Build trust

If a customer purchased a refrigerator from a company and finds it a quality product, then it is more likely that he will explore other products of the same brand. Customer retention helps in building the trustworthiness of a business. A rational buyer wants maximum satisfaction for the amount of money spent. Once a company successfully retains customers, it doesn’t need to worry about its other products and services. It directly increases the profitability of a company.

Successful experiments

A new customer unaware of the quality of product and service will be opposed to the company’s experiments. But an existing customer will welcome the experiments of a brand. In case of mistakes, old customers tend to forgive the company’s errors. They will not shift their brand immediately. A regular customer can give genuine feedback for the betterment of the business.

Who should focus on their customer retention? 

The answer is quite simple. Every business should focus on customer retention irrespective of its status and revenue. Every business needs to earn profits consistently to survive in the rapidly growing and competitive environment. Customer retention ensures firms of a certain level of profits and revenues.

How do you retain customers? 

Subscription model

The subscription model involves selling a product or service for recurring revenue. Companies provide customers subscriptions so they can be engaged and enrolled with the products and services for a longer duration. It ensures a certain level of income up to a specific tenure. 

Customer care

Untackeled grievances lead to the loss of customers. They should be facilitated with round-the-clock assistance services.

Easy return option

Keep the return policies relaxed and straightforward so that a buyer doesn’t need to give a second thought while buying your products. Return options ensure the buyer that his money is safe.

Discounts and offers

This is not a new strategy but an effective one. Sending personalized emails and messages with discount offers and codes is an excellent way to satisfy the rational buying behavior of the customers.

Excellent shopping experience

A buyer’s shopping experience must be smooth and free from glitches; otherwise, the buyer won’t take much time to shift to the other options available in the market.

Focus on customer acquisition and retention equally

There should be a balance between customer retention and acquisition. Customer retention is indispensable, but that doesn’t mean a company should stop acquiring new customers.


The best way to know the deviations is through feedback. As soon as a brand learns about its weaknesses, the more quickly it can make necessary changes.

Final Words 

A business can taste success only when it gives the proper attention to its existing customers and the acquisition of new customers. Customer retention proves to be highly beneficial for profitability. Customer retention is essential for a business because of several other reasons, such as brand recognition, customer loyalty, and unpaid promotion.

With Growcify platform, that allows you to take your business online within 24 hours and create your business apps. It offers affordable pricing which makes it simple and convenient for business owners. These services are offered at a very low cost. It’s a cloud-based SaaS platform that provides E-Commerce, Multivendor Pickup & Drop Apps, and a Point of Sale (POS) system. Don’t wait, get the best plan for you and start your online business today.

Leave a Reply


affiliate marketing (1) AI in Digital marketing (1) amazon fba (1) blockchain (1) brand logos (1) business ideas (24) business investment (1) business loan (1) business loan in India (1) business loans (1) business quotes (1) chatbots (1) Chat GPT (1) chatgpt (2) corporate tax (1) corporate tax rates (1) customer retention (1) digital marketing (2) Diwali (1) dropshipping (3) dropshipping business (1) E-Commerce (60) e-commerce websites and mobile app (2) eCommerce (2) eCommerce app (9) Ecommerce app and website (1) eCommerce business (1) ecommerce chatbots (1) ecommerce email marketing (1) Ecommerce International Shipping (1) ecommerce marketing (1) ecommerce trends (1) ECommerce website (30) email marketing (2) Entrepreneurs (39) fixed deposits (1) Future (41) future of e-commerce (1) future of ecommerce (1) Global Trade (1) Growcify (61) influencer marketing (1) inspiring quotes (1) International Shipping (1) International Shipping For Global Trade (1) investment (1) investment ideas (1) investment opportunities (1) kirana store (1) logo (1) mobile app development (8) mobile apps (13) Multivendor (1) mutual funds (1) NFT (1) NFT's (1) no-code app (7) no-code app development (7) non-code apps (1) Non fungible tokens (1) online marketplace (1) online shopping (1) online store (1) payment gateway (2) payment gateways in India (2) PayNow (1) POS (1) pos software (2) POS system (1) Retail Business (38) SaaS (1) search engine marketing (1) small business (3) sms marketing (1) SMS messages (1) social media marketing (2) Start Selling (21) stock market (1) Success Stories (1) Technology (34) text marketing (1) top 10 payment gateways in India (2) Top Selling Categories (1) Top Selling Products (1) types of logos (1) WhatsApp (1)
%d bloggers like this: