How to Build a Customer Retention Strategy for Your Online Store?

Murali Gottumukkala
Co-founder, COO
March 23, 2022


The advantage of having an online store is that a lot can be achieved with very little or even zero budget. Once you have set up your online store and have customers come into your store, the next step is to work towards customer retention.

A combination of database management, customer engagement, and developing incentives can go a long way in keeping your hard-earned customer base. However, the great thing about the digital revolution is that customer retention can be done free or at low costs.

A study of key customer retention strategies used by online stores will convince you that starting an online store can open up significant customer acquisition opportunities yet be simple to retain.

Let us first have a look at some of the key retention methods below:

1. Email with promotional offers

One of the simple, most valuable ways of retaining a customer is staying in touch with him by email. However, sending emails that are not about actionable points may not be a good idea.

It is best to come to an end and offer a discount or even information about making something new available to them in your store. This customer retention strategy requires you to maintain your database, but it costs nothing to send an email!

2. Customer loyalty program

All successful online stores offer some incentive to a customer to stay loyal. This can be just about giving your customer something free that is low on cost for you. Some loyalty points can be allocated for every purchase. Depending on your financial capacities, you can offer discounts too.

3. Personal dashboard for customers

One of the features of online food aggregators is that they each have a personal dashboard. Your customer is likely to have used a personal dashboard on other websites.

Thus, making one for your customers can make it easy for them to use your online store. The available details of past order can help him reorder the products quickly and result in impulse purchases.

4. SMS/WhatsApp connect

Sending an SMS on special festive occasions or birthdays can be a less intrusive way of being in touch with your customers. It puts you in their mind and may bring them back to the dashboard.

Also, you can integrate WhatsApp as technology now allows you to connect quickly, and it has a personal touch.

5. Social media updates

Almost all your customers are users of Facebook and Instagram. Many of them will follow your page if they are encouraged to. Posting content regularly can help you appear to be a vibrant online store, display more products, create more mental engagement with your customer.

6. Reply to customers

Customers will contact you on email, social media, or phone to get information, give positive feedback and make complaints. Replying to them is a great way to build a personal connection.

Also, as you will notice, big companies receive lots of complaints on social media handles. You would notice that they always reply to customers and that too politely. This show of grace can retain these customers as well as those who are reading the replies.

7. Customer referral benefits

When customers talk to each other about an online store they like, they end up buying more. This is because they discuss with others what else is good apart from what they are already using.

You would notice that Ola, Uber also have a customer referral benefit system. This can speed up your growth in the market as your customers have an incentive to overcome laziness and provide positive word of mouth.

8. Demonstrate social responsibility

The pandemic era has made people more conscious of larger issues. Sharing with them what you have been doing directly can attract socially conscious customers.

If you feel you are doing too little, you can broadcast public interest messages, videos, and calls for help. Your customers would like to believe they are enriching a socially responsible founder.

9. Share productive content

While social media companies fill the customers with unproductive content, many internet users have become conscious and stay away from needless entertainment and online content that waste their time.

However, sending tips, ideas, and knowledge that can help improve themselves will build respect for your store and help create genuine relations with customers.

10. Avoid spamming

Once you send too many emails and SMS to your customers, you risk irritating a customer. This can be avoided by offering an unsubscribe option. To determine how frequently you should be contacting your customers, observe the practices of other businesses in your product category.

The above customer retention methods are all possible to pursue without many costs. The best thing to do would be to spend more on it as your online business grows.

Also, going through these customer retention strategies can help you prepare by managing customer data with more discipline. You would also notice that you have used online stores more often due to one of the above features.

This ease of managing an online store should incentivize any entrepreneur to join the digital revolution and take his business online without further delay. This can be done without hurting your current offline business.

To do this, all you need to do is download the aasaan app and follow simple instructions.

Try it out now!

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