eCommerce 101: Importance of Building Customer Loyalty

Unlike in the past, customers have more power to decide what or where to buy. Competition today is based on who has the best eCommerce customer experience. Here's how to build eComm customer loyalty.

By:
Jason Chan
eCommerce Fulfillment
eCommerce Strategy
Customer Satisfaction
eCommerce Customer Loyalty | Rakuten Super Logistics

eCommerce business is on the rise, mainly due to the increased use of the internet. Conducting business online requires brands to work with credible partners like Rakuten Super Logistics to improve customer service. They also need to consider factors that can build reputable customer loyalty. Unlike in the past, customers have more power to decide what or where to buy. Competition today is based on who has the best products, alongside the best eCommerce customer experience.

Your eCommerce business needs to invest more in building customer loyalty than even advertising. Numerous advantages are backed with statistics showing the significance of eCommerce business loyalty. Before we get there, let us look at ways your eCommerce business can improve customer experience.

Engage Your Customers

It's harder to build trust when you're having conversations virtually rather than in person. However, challenging doesn't make it impossible. Always remember that a happy customer makes the most loyal one. Simply put, don't let your customers remain strangers. Bring them into the conversation, for example, by using a live chat feature on your website. Similarly, you can also connect your site to popular social media channels like Facebook, Twitter, and Instagram, where customers can interact with you. This shows them that you are accessible and relatable.

Enable Self-Service

One of the reasons customers choose to shop online is the aspect of self-service. It enables them to explore and do things to their own liking. Most of them prefer a knowledge base system to get step-by-step guides, frequently asked questions (FAQs), glossaries, video demonstrations, and introductory articles. A knowledge base is essential because it equips customers with relevant information, and it's available 24/7, unlike a customer care agent who can sometimes be out of the office.

Make Use of Customer Reviews

Customers are now more empowered to make informed decisions than ever. They also want to be heard and hear what other customers are saying about your products and services. Research has shown that 77% of customers prefer brands that allow customers feedback. The reviews are also a great avenue of ideas that will help your brand improve the eCommerce customer experience.

Reward Your Loyal Customers

In doing business today, you are likely to spend more in attracting new customers than retaining the existing ones. 82% of business leaders believe that keeping customers is cheaper than customer acquisition. The secret is dedicating your time and thoughts to getting your customers to come back again. You can achieve this by personalizing your promotions. Everyone loves to feel special. You can send emails and newsletters targeted to your past customers, specifically offering them special discounts, sneak previews of your products, and insider news of your brand. Treat your customers like royalty and make them feel like they are on a VIP airport lounge.

Importance of Building eCommerce Customer Loyalty

Customers will spend more on brands they are loyal to.

Research has shown that 43% of customers will prefer shopping at brands they are loyal to even when there are other available alternatives in the market. A remarkable eCommerce customer experience will make customers continue buying even when the prices are slightly higher.

Two. Customers will drop your brand if it doesn't engage them

Most customers' buying decisions are based on emotions. Engaging your customers entails the emotional relationship you build with them. According to customer loyalty stats, 54% will consider dropping you if you do not engage them.

Brands have a higher chance of selling to existing customers than new customers.

Only 2% of new web traffic converts into a customer. Additionally, you have a 5%-20% chance of selling to a new customer compared to 60-70% selling to existing customers. Customers hardly buy on their first encounter with a brand. First, you must convince them and build trust to create effective eCommerce business loyalty.

Your customers will bring their friends and family to your brand.

If your brand has an excellent loyalty program and eCommerce customer experience, your customers will recommend your brand to their colleagues. A positive word-of-mouth review is very efficient in bringing new customers to a brand. Over 81% of customers trust recommendations from colleagues over those from companies.

Challenges of Building Customer Loyalty in eCommerce

Building customer loyalty is not a walk in the park; it has its share of challenges. One of the challenges is limited customer engagement. Most brand loyalty program members are inactive even when they choose to sign in. They don't engage, and some sign out after a few months. Brands should leverage their websites to suit customers' behavior and interests to solve this challenge.

Another challenge in building eCommerce customer loyalty is the failure to differentiate loyalty to the discount and loyalty to the brand. Most brands only offer transactional rewards to the customers, yet the customers want to be rewarded beyond transactional rewards. They want brands that engage them in non-transactional interactions like surveys, email, and social media engagement. Such initiatives will build a solid emotional connection with the customers.

Customer loyalty has proven to be the difference between brands in this era. eCommerce businesses need to match customer habits to achieve eCommerce customer loyalty. eCommerce businesses can also take advantage of working with a 3PL to provide the best customer experience through fast and accurate fulfillment.

Here at Rakuten Super Logistics, we offer the most fulfilling logistics solutions. Request a quote to partner with us today!

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Rakuten Super Logistics is a leading eCommerce order fulfillment company that provides the scalability, flexibility, and cost savings retailers demand.

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