Customer loyalty in e-commerce: Increase your success with existing customers

In some online shops, existing customers are treated shabbily. They are already customers – so why fight for them?! Quite simply: they are a decisive factor for success in e-commerce. Studies show that it is much cheaper to retain existing customers than to acquire new ones, and at the same time, they also generate higher sales. It is therefore worthwhile to nurture your relationship with them. Find out how customer loyalty works and what measures you can take to achieve it here.

Advantages of customer loyalty in e-commerce

If you build a trusting relationship with your customers and they are satisfied with your products and services, this will increase the success of your online shop. Customer loyalty increases your sales. Existing customers have been proven to spend more money in the shop than new customers. Their average shopping cart value is higher and they shop regularly—monthly or once a year.

Furthermore , it is much cheaper to activate existing customers with various customer loyalty measures than to acquire new customers. This also makes you less dependent on Google search results. When new customers search for a product that you sell, you compete with many other stores for the best places in the SERPs (Search Engine Result Page). However, your customers already know your shop and go directly to your website. Finally, satisfied existing customers are also happy to recommend your shop to family, friends, or acquaintances. This is free advertising for you.

Regular customers vs. new customers – a monetary comparison

Still not convinced that customer loyalty is worthwhile in e-commerce? Here are four unbeatable facts from various studies:

1. The cost of acquiring new customers is on average five times higher than for measures targeting existing customers.¹
2. Existing customers are willing to spend 33 to 70% more in the store than first-time buyers.²
3. Increasing customer retention by just 5% can boost your profitability by 75%.
4. Although existing customers only account for one-third of all buyers in most shops, they generate two-thirds of sales.³

Exclusive customer club & exclusive offers

Offer your customers VIP membership and delight them with selected offers such as a sneak preview of a new product range or a right of first refusal. Combined with a points collection system for every purchase, you can create further incentives to visit your shop again.

Selected discount campaigns for your existing customers, limited-time or limited-quantity offers, an exclusive collection—all of these are additional attractive customer loyalty measures that provide incentives to buy in e-commerce.

Coupons & Discounts

Show your existing customers that they are important to you with coupons and special discounts. As we have seen, regular customers account for the majority of e-commerce sales. You can reward them for this and at the same time give them an incentive to buy something from your store again. Give them a large discount on a popular product instead of the entire range. Limit the discount to a specific time period – this scarcity will encourage your customers to buy. Another option is to offer a volume discount on goods that your customers can store for a longer period of time. Or link the discount to certain conditions and communicate this transparently, for example, "Every second pair of pants 50% off."

goodies

Product samples and small gifts are also an excellent way to build customer loyalty in online retail. Vouchers or discount coupons can also be interesting goodies. Simply include them with the order, as this will not incur any additional shipping costs.

Premium/Extra Services

Reward your regular customers with additional services. For example, offer them free gift wrapping for their order. Allow them to customize their order or inform them in advance about upcoming discount promotions.

Insights training and expertise

Deliver special content to your regular customers: A virtual live event with a popular manufacturer from your shop, webinars on best practices for your products (e.g., your shop software), or e-books with insights into your industry provide special insights and added value for your customers.

Dedicated contact person

If possible, offer your customers a dedicated contact person. This gives them the feeling that they are being well looked after. They know that this person is already familiar with their concerns and interests and can contact them directly.

Dedicated contact person

If possible, offer your customers a dedicated contact person. This gives them the feeling that they are being well looked after. They know that this person is already familiar with their concerns and interests and can contact them directly.

feedback

Ask your existing customers for feedback on a regular basis. This will make them feel valued and you will find out what they particularly like about your company and what they don't. You should then analyze their criticisms and make the necessary improvements.

Collaborations with other companies

You can also establish partnerships with related companies to launch joint campaigns. Your existing customers receive a special discount in your partner's store and vice versa. This creates a win-win situation for both companies: your existing customers feel valued by you and your partner may gain a new customer.

Personalized emails

Email campaigns and newsletters enable you to maintain contact with your shop customers and build a relationship with them. By tailoring your emails and their content to each individual customer, you can respond specifically to them and their interests.

Stay up to date on personalization: Sign up for the epoq newsletter. Register now!

In addition to a personal greeting, personalized emails can also contain relevant product or content recommendations that match the customer's needs and thus offer great added value. This allows you to encourage customers to visit your store again and increase traffic.

babymarkt.de offers customers added value in personalized emails, for example in the form of vouchers and product recommendations.
(Source: Screenshot of email from babymarkt.de)

Shopping Stream

Customers who revisit your store often have a greater need for entertainment. You can meet this need by integrating a shopping stream into your online store. This personalized shopping area is tailored to each customer and their preferences and offers a selection of favorite products and brands as well as interactive elements and content. This mix of service and entertainment motivates customers to visit the shop regularly and achieves a natural customer loyalty effect in e-commerce.

More information about the Shopping Stream →