Customer Retention Strategies For E-commerce Business In Nigeria

Customer Retention Strategies For E-commerce Business In Nigeria

The sole aim of every business is to attract new customers, which often requires money and time inputs to achieve such a goal. But while growing your customer base is important, keeping your current customers happy is even more important – which puts customer retention in the spotlight. Existing customers understand your business better with so much trust in what you do or offer. Hence giving you the leverage to use fewer resources to convince them than new customers.

Therefore, we will be exploring effective strategies to adopt in fostering customer retention for your business.

What Is Customer Retention?

Customer retention is the ability of a business to maintain a connection with customers after their initial purchase for a predetermined amount of time. A retained customer stays loyal to the business during this period, purchasing from it or interacting with it in other ways.

Benefits Of Customer Retention

1. Cost Effective

It is typically less expensive to keep current than to find new ones. Experts believe finding a new customer is five to six times more expensive than reactivating an existing one. This implies that spending money on customer retention strategies instead of new customer acquisition should yield a higher return on investment.

2. Enhanced Reputation

A business with a large number of returning customers is a testament to the excellent quality of products or services that it offers. This often influences the decision of new customers as they tend to trust the business – increasing their sales margin.

3. Strengthened Customer Loyalty

Retained customers are more loyal and can, in turn, evolve into your business brand ambassador. This is due to the prosperity of your customers to convince new customers about the excellent product or service delivery of your business. It can lead to more referrals to your business. Also, your retained customers will likely try new products and spend more than new customers.

Strategies For Customer Retention

1. Improve Product And Service Quality

Any business that wants to retain customers must provide them with top-notch goods or services. Why would you want your customers to come back if you don’t impress them the first time? This is according to the cliché “first impression lasts longer.” Therefore, you must identify the unique selling point (UPS) of your business and market it successfully.

2. Provide Excellent Customer Service

Customers should find it easy and hassle-free to contact your business if they have any questions or issues. Give your customers several ways to contact you – via phone, email, WhatsApp, or live chat. Companies can avoid having a high customer attrition rate by employing a well-trained customer service team that can turn a bad customer experience into a positive one by offering prompt and empathetic assistance. It should be noted that high emotional intelligence broadens the retention funnel of any business.

3. Provide A Seamless User Experience

Invest in an easy-to-use, convenient, consistent, engaging e-commerce platform. Customers may decide not to shop with you again if they have trouble finding what they’re looking for or if the checkout process is complicated or time-consuming. While this can increase the abandoned rate of your business, it may also reduce your customer retention power. So, make access to your products or services seamless, including simple payment options that your customers can use.

4. Adopt Competitive Pricing

It is always important for every business to have a feature that would give them a competitive advantage in getting more customers. As such, finding comparable goods or services elsewhere at a lower cost is one thing that can hamper your customer retention efforts. You must constantly do market research and ensure that your pricing strategy is competitive because customers want to feel like they are getting great value for their money.

5. Offer Discounts And Deals

An excellent way to encourage returning customers is to offer seasonal discounts, product bundles, and loyalty-based pricing. Feeling that they are getting a better deal makes customers more inclined to purchase. Offers with time limits or discounts restricted to members of your customer loyalty programme or those who have connected with your business on social media can instill a sense of urgency and value in the eyes of your customers.

6. Make Delivery, Returns, And Refund Transparent

Delivery, return, and refund policies are crucial in determining the customer experience, although they are frequently disregarded. Unexpected expenses, complicated return procedures, and delayed delivery times can all give customers a negative impression. Therefore, procedures for delivery, returns, and refunds should be transparent enough to foster repeat purchases and enhance customer trust.

7. Ask For Customer Feedback

It is imperative to request customer feedback to give you an insight into how to improve your product or service offering. This would also offer customers a sense of belonging that your business is customer-centric and not only out to make profits. Customer feedback can be achieved through a customer satisfaction survey or communication channels like phone calls, texts, emails, etc.

Conclusion

Customers play a vital role in establishing and sustaining any business, and it can be safe to infer that they are the unit of business. But as interesting as customer acquisition can be, customer retention is the chief driver of any business – which is why you must know customer retention strategies that could help your business growth.