How to turn random customers into regular customers

As an online retailer, how can I turn visitors who place a single order into loyal customers? And why is it so important to take care of regular customers in the e-commerce market? This article will introduce you to the topic of customer retention and is based on my personal experience.

Why has customer retention become so important?

Customer retention is a crucial factor for success in online retail. It’s well-known that the revenue of an online shop doesn’t only depend on the number of visitors (traffic), the conversion rate and the average shopping basket size. The level of customer retention also plays a role. Several studies have shown that loyal customers place more items in their shopping basket on average. Their basket size is several times larger than single-visit customers, not to mention that loyal customers also become natural ambassadors and multiply sales for the retailer.

It’s a fact that acquiring new customers has become increasingly expensive in recent years as the competition heats up and becomes more professional. But many online retailers are still putting enormous sums into digital marketing measures to gain new customers while failing to invest enough in holding onto customers. So the key question is what form should this customer retention take? Why do customers keep returning to make purchases from the same online retailer?

My experience as a regular customer

According to the latest Swiss e-commerce trend indicator, I’m towards the top of what is considered average for Swiss customers as I tend to shop online two to three times a month. For my non-food purchases on major Swiss e-commerce platforms, I buy much more often from Digitec Galaxus than from the other major players.

Why? I find it to be the platform that offers the best customer experience, from ordering through to delivery of the parcel. To start with, the front-end of the marketplace is easy to navigate and clearly structured regardless of whether I’m on a PC or smartphone.

It’s easy to find my desired product by using the menu or product suggestions in the search function. Once I’ve found what I’m looking for, I’m first only shown the most important information on the product page: a short description, several high-quality photos, the price and delivery time.

If I’m looking for additional information to convince me about the product, it’s easy to find further down the page: technical data, exact dimensions or warranty information. I also appreciate being able to see comments from other users – who are often searching for a product for the same reasons as me – and knowing whether or not the product met their needs.

Besides clarity and accessibility, I’ve also found out that the information shown means what it says. The returns process and warranty are described transparently and are actually reliable. The delivery times for the order are always adhered to. If I absolutely have to get a product the next day, I can be sure that I’ll receive it the next day thanks to priority delivery.

Specific recommendations for online retailers

All these positive features in the customer journey create trust and make customers want to return. However, not every retailer has the same resources as the market leader Digitec Galaxus.

Which specific recommendations can you draw on to increase customer retention for your own e-commerce business?

• Always try to optimize the customer experience from A to Z, from the online shop through to delivery, while ensuring you focus on simplicity and user-friendliness.
• Provide clear and transparent information on your products and services in the online shop (warranty, returns).
• Organize your logistics process so that you can keep your promises in relation to delivery times.
• Focus first on cultivating communication and interactions with your regular customers, either using customer reviews, on social media, via a newsletter or at events.