How to Reduce E-Commerce Customer Churn

In the world of e-commerce, some things are inevitable, like fluctuations in sales, occasional product returns, and a bit of customer churn. Customer churn is the business term for the loss of customers and is often measured in a percentage over a specific period of time. Some churn is completely normal, but keeping this number in check is important to ensure long term business success. If you’re concerned about customer churn for your business, here’s what you can do to reduce it.

 

Calculate your churn rate.

Calculating churn rate is an important first step because it gives you a metric to measure improvement. Once you determine your churn rate (which is calculated by dividing the number of churned customers by the original number of customers), you can set goals and KPIs that your team can strive toward achieving. When setting your KPIs, keep in mind that some churn is normal. This article includes a helpful resource about understanding typical churn rates.

 

 

Establish a loyalty program.

Loyalty programs incentivize customers to return by offering perks, rewards, discounts, or exclusive access to items as a way to thank them for their repeat business. In addition to encouraging customers to return, loyalty programs also tend to raise each shopper’s customer lifetime value.

 

Personalize the experience.

Show your customers you care about their business by personalizing their experience. Use past purchasing data to personalize email greetings, make recommendations for repeat orders, and suggest new products they might like. Consider sending your customers a “happy birthday” email or credit on their birthday to make them feel seen and appreciated.

 

Collect feedback regularly.

In product marketing, feedback is your best friend. Administer customer satisfaction surveys, and use that feedback to make improvements to your products, marketing, and support protocols. These improvements will help resolve issues that lead customers to churn, all while sending the message to your consumers that you care about their satisfaction. You can take this a step further and address negative feedback promptly by offering rewards or refunds to build goodwill with churned customers that could return to your company in the future.

 

Use omnichannel customer support.

Meet your customers where they are, don’t make them come to you. Omnichannel marketing enables bots and human specialists to handle complex requests on any social media platform. This means that a customer can solve their issue directly on Instagram, TikTok, or LinkedIn, instead of having to go through your company website or a third-party solution. This attention to service can prevent wavering customers from churning by solving their issues on the spot.

 

Foster a community for your customers.

Social media hashtags, groups, and comment sections such Facebook groups can be valuable tools for building brand loyalty. When customers find they can relate to a community about their product experience, they sometimes associate the experience with their own identity, encouraging them to return for future purchases.

 

Streamline checkout.

Make your checkout process as simple as possible to reduce cart abandonment and encourage purchases on a customer’s first visit to your website. Holdups in the process, like glitchy webforms or the requirement of too much personal information, can prevent customers from making a repeat purchase the second time around.

 

Reducing e-commerce churn is a big step in improving revenue. Once you’ve identified the problem, you can follow these steps to ensure that your churn rate gets back on track. Looking for more guidance? Check out our blog for more tips and information on e-commerce best practices.