3 techniques to improve e-commerce retention!

The objective is to allow these companies to boost their acquisition and improve their retention, providing their customers and/or potential customers with a personalized and coherent experience at each of the points of contact.

With many years of experience, marketing automation agency Boryl offers us 3 formidable techniques to improve customer retention in your e-commerce!

What is customer retention in an e-commerce?

Customer retention in an e-commerce is nothing more than its ability to retain the customer over time.

A loyal customer is a customer who frequently generates additional value (new purchases) over time.

According to several studies, it costs on average 5 to 7 times more for an e-commerce store to convert a new customer than it does to reconvert an existing customer.

Thus, you will understand the importance of a good retention strategy!

3 techniques to improve customer retention in e-commerce


Prioritize your new customer acquisition campaigns the smart way!

To improve your overall e-commerce retention, you can analyze your existing customer database and identify which segments of people have been most loyal in the past.

By exploring your customer database, you will be able to target your acquisition campaigns to the most loyal people segments, which will directly impact your e-commerce’s overall customer retention and profitability.

These segments can be reached using various dimensions and KPIs.

Examples of dimensions: age, gender, country, city, social/demographic targeting of the customer of the Facebook Ads ad group through which you acquired them, etc.

Examples of KPIs: customer lifetime value (CLV), customer lifetime, redemption rate, retention rate, churn rate, etc.

For example, you can target your acquisition campaigns specifically at women 35-50 years old who live in the provinces because, according to your analyses, customer lifetime and customer lifetime value are higher than average.

Some advertising platforms may also do the segmentation and targeting work for you if you continually submit enough data about the most loyal customers (the champions) in your database.

This is possible, for example, with lookalike audiences for Facebook ads.

Facebook Ads will take care of targeting (using the immense amount of data it has about its users) people similar to the customers you passed it on. A fearsome weapon!


Offer the right product promotion, at the right time and to the right customer!

Also by analyzing your existing customer database, you can identify for each combination (people segment) / (first product purchased) the best time to push the most suitable product on sale to them. This way, you will greatly increase the chance that your customers will make a second purchase.

For example, you could push a promotion for the product “gray blanket” 30 days after the first purchase of women aged 35 to 50, residing in the provinces, whose first purchase was the “dark green pajamas”, because according to their analysis , is a scenario that comes up very often.

This promotion can be carried out via an SMS push notification, a media announcement or an email. You can also use these 3 levers simultaneously under certain conditions to optimize marketing pressure/consistency.


Identify the recurring causes of churn and fix it!

Another technique to improve e-commerce retention is to analyze and understand why a customer no longer buys. Yes, it seems logical… But how to do that?

The easiest way to identify a customer who no longer buys is to calculate their average purchase frequency and consider them as “churn” if they have not purchased x times their purchase frequency.

So, to identify the reason, there are a multitude of avenues of investigation, here are two simple ones:

  • Identify the top x of the last products purchased before the churn and investigate them
  • Identify top x customer service loan requests before churn and act accordingly