How to convert one-time buyers to repeat customers on eCommerce platforms?
- 07 Nov 2023
As an eCommerce service provider, you know the effort and expenses you go through to acquire new customers and retain the existing ones. Would you not like to see them return to your platform again and again? A one-time purchase may not even compensate your business for the acquisition cost involved in winning the client.
Often, eCommerce business owners find it challenging to convert new customers to repeat business. So, it pays to know the strategies to keep attracting your existing customers and making them engage more on your platform.
Successful eCommerce platforms generate 40% of their revenue from repeat customers. On such platforms, just 20% of your clients can account for the majority of your revenue. Most importantly, loyal customers advocate your brand better than anyone else.
So, let’s understand how you can convert new clients to loyal customers on your eCommerce platform.
Why is it important to prioritize existing customers?
At the outset, have a look at the statistics. Retaining your existing customers can be 5 times more cost-effective than acquiring a new one. When you manage to boost your customer retention by 5%, it can leverage your profit up to 95%. This is precisely why eCommerce service providers focus on attracting repeat customers. Rather than spending your resources on acquiring new customers, it’s advisable to nurture your relationship with existing customers.
- Word of mouth
With satisfied customers, you can capitalize on their ‘word of mouth’ form of promotion for your business. Loyal clients are likely to recommend your brand to their friends and acquaintances. This contributes to the growth of your brand through free marketing. Compared to any other marketing mechanism, word- of-mouth works ten-fold better.
- Easier to sell
Existing customers already know your brand’s authenticity and reputation. On the other hand, new customers often tend to be skeptical before making the first purchase. So, eCommerce platforms are 60% to 70% more likely to sell their merchandise to existing customers. Since you have already cultivated a positive reputation for your brand among existing customers, you need less effort to sell to them.
- Consistency in revenue
When you focus on fostering better business relations with existing customers, you gain consistency in revenue. Compared to a single repeat customer, it takes anything between 5 and 7 new customers to gain the same value of revenue. Over time, repeat customers are likely to return to your store and make additional purchases. The lifetime value of permanent customers is greater than that of one-time customers.
4.ways to convert new customers to repeat clients
Now that you know the value of transforming new clients to permanent repeat customers, let’s find out effective ways to go about this mission.
- Provide better customer support
By customer experience, we mean every interaction that your clients have with your brand. It starts from the sale process and continues even after making the sale. A single negative experience can prompt 1 in 3 of your clients to abandon your brand. However, with top-rated customer service from your end, they are likely to stick to your brand. Once they do, you can sell your products to them.
Here’s how you can enhance the customer support experience on your eCommerce platform.
- Omnichannel support: At every touchpoint, customers want a seamless channel to communicate with your brand. Delivering a personalized experience through an omnichannel support mechanism turns out to be crucial. So, adopt a technology that aligns all your communication channels like emails, chat, phone calls, SMS, etc.
- Personalized journey for customers: Well, it’s natural for your customers to experience a gratifying journey when you remember their preferences and personalities. Successful eCommerce customer service offer personalized recommendations and offers to keep their customers on their toes.
- Impressive after-sales service: Even after making a sale, you need to assist your customers with their requirements. For instance, they might need assistance from your support desk for returns, cancellations, and refunds. When you readily roll out a generous cooperation, they are likely to return and purchase.
- Automated conversations 24/7
In an age of cutthroat competition in the eCommerce sector, you need to be prepared to answer your customers’ queries 24/7. Do you know that 40% of your clients would be expecting a response within an hour after they contact you through social media? Failing to respond on time can prompt them to move on to another platform.
This urgency of responding to your clients instantly explains why you need automated tools. With AI-powered chatbots, you can seamlessly manage repetitive questions and common inquiries of your customers without any manual intervention. If you haven’t integrated your eCommerce platform with a chatbot yet, make sure to get one soon. Initially, the bot can engage your customers and provide you with enough time to assign the inquiry to a human agent.
- Offer freebies and incentives
Customers love getting discounts and freebies. So, try to reward them for their purchases by offering free shipping, discounts, and coupons. With these incentives, you can attract customers and make them purchase multiple times.
Particularly, if you notice that a potential customer abandoned the cart or hasn’t been active on your platform for a while, you can provide these incentives to them.
However, take care not to be too frequent with these offers. They might get the impression that you are trying to hard-sell your merchandise.
- Bank on testimonials
Positive testimonials and reviews from your customers reflect the credibility of your site. Remember, 93% of your potential customers would be checking your website’s or your product’s reviews before making a purchase. With reviews and testimonials, you can capitalize on the reputation that you have already developed over the years.
In the digital business world, eCommerce service providers are witnessing unprecedented competition. To streamline your business, make sure to retain your existing customers before trying to acquire new ones. We have outlined the effective means to cultivate a strong relationship with your clients. With a proactive stance to leverage your customer support system, you can convert one-time customers to repeat clients.
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