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How To Increase Customer Retention Through Customer Service

Mariel M.

How To Increase Customer Retention Through Customer Service

Meeting goals & reaching success in the E-Commerce industry doesn’t just have to do with earning new customers – more often, the key is in retaining customers by fostering strong relationships based on trust. 

While the percentages of repeat customers might seem low for most E-Commerce businesses (generally between 15-21%), the revenue generated by this segment of your audience is monumental because these customers not only shop from you more often, but they also spend 3x more money than one-time shoppers when they do. 

In fact, Gorgias found that repeat customers typically generate 44% of total revenue and 46% of orders, which goes to show that they’re much more profitable than new customers.

By prioritizing customer retention strategies in your E-Commerce brand rather than focusing solely on acquisition, you can increase your revenue, customer lifetime value (CLTV), and create a foundation for achieving sustainable profitability and growth in the future.

Why Should Your Brand Focus On Repeat Customers?

Statistically speaking, we know that it costs 5x more to acquire a new customer than it does to retain an existing one, which is the crux of our argument for why E-Commerce brands should spend more time nailing their customer retention strategy rather than focusing primarily on earning new customers.

In addition to cost-efficiency, there are several other benefits that repeat customers can offer your business, a few of which are:

  • Word-of-mouth marketing & positive reviews
  • Recommendations to friends and family
  • Valuable customer feedback
  • Predictable revenue
  • More data for measuring & determining key metrics

When you consider the growth your business can experience by maximizing efforts to retain repeat customers, there’s no question why an intentional customer retention strategy should be the primary focus of your sales and marketing teams.

5 Customer Retention Strategies That Will Save & Improve Your Brand’s Customer Relationships  

As crucial as it is to make the upcoming holiday shopping traffic count in Q4 this year, you likely won’t experience the results you’re looking for with “quick-fix” solutions.

Rather than throwing together a slew of random tips and hoping one of them sticks, we’ve put together a list of 5 thoughtful customer retention strategies for you to implement that will not only save customer relationships but also foster stronger, longer-lasting connections with loyal consumers.

1. Create A Seamless Digital Experience

The rule of thumb for creating a cohesive online experience is figuring out ways to turn 3 or 4 clicks into 1 or 2, and your E-Commerce store is no exception. Customers don’t often have hours to spend online shopping, and ensuring that everything within your online store is easy to find and purchase is key to earning larger orders from repeat customers.

Plus, according to Zendesk’s 2021 Trends Report, 65% of customers want to buy from companies that offer quick and easy online transactions, which is why a straightforward checkout process is a MUST. 

Keep this in mind while you’re optimizing your website (don’t forget about mobile view!) so you can meet customers’ expectations this holiday season.

2. Humanize Your Brand

If we think about the customer service experiences we remember the most, we’ll likely find that it’s because the agent we interacted with went above and beyond to help us resolve our issues. 

Empathy goes a long way in customer service, and by practicing customer care that offers a more human touch, we can foster stronger and more personal relationships with customers that can lead to lower churn rates, greater brand loyalty, more referrals, and a stronger brand reputation. 

Here are a few ways your agents can add an extra touch to customer service interactions:

  • Provide special incentives for repeat customers
  • Offer discounts or free shipping to customers who may have had a poor experience
  • Take accountability for mistakes
  • Share a personal anecdote to relate to customers 

All in all, empowering your customer service agents to offer personalized solutions and make tough judgment calls will pay off in the long run for both your customers and your business.

3. Build Trust

Particularly with SaaS brands or businesses that offer highly technical products, it’s imperative to have a thorough knowledge base easily available for customers to access.

Not every customer wants to contact customer service right away if they experience an issue with their product or service (in fact, 67% of customers would rather use a self-service option instead of speaking with a support agent). 

Therefore, a knowledge base that includes DIY/how-to videos, an FAQ page, and various resource articles with step-by-step troubleshooting instructions will:

  • Foster trust with your existing customers
  • Improve customer satisfaction
  • Reduce repetitive inquiries for your customer service team

4. Listen To Your Customers

Only 1 in 26 customers will tell a business about their negative experience, which is why it's crucial to listen to those who offer feedback and encourage others to do so as well by sending surveys and questionnaires at key points in the customer journey. 

Listening to and acknowledging your customers’ frustrations not only makes them feel heard and valued by your brand, but it can also offer your brand the opportunity to implement their feedback and make worthwhile changes based on issues they express to your team.

After all, there’s always room for improvement, and listening to the customers who have already worked with your brand is the best way to get real-time feedback that can help you save those relationships and earn new ones in the future.

5. Invest In Technology & Support

For 86% of consumers, good customer service turns one-time customers into long-term brand champions, which is why investing in the tools you need to provide an excellent customer experience is the best way to give your business a competitive edge, particularly in today’s saturated markets.

Helpdesk software like Gorgias, Zendesk, and Gladly allows you to offer an omnichannel experience and keep better track of customer inquiries and other information that you can use to improve and strengthen your other customer retention strategies. 

In addition to specialized tools & software for E-Commerce uses, partnering with an agency for outsourced customer service will give your brand a more cost-effective solution to improve your customer service experience without having to spend hours interviewing, hiring, and training the right people.

Partner With TalentPop To Elevate Your Customer Retention Strategies & Increase Your CLTV

Developing a customer retention strategy for your E-Commerce business that actually works requires foresight and thought into your audience’s thoughts, needs, and desires.

Here at TalentPop, we’ve helped over 500+ top brands like True Classic, Orgain, Beyond Meat, and Olukai retain more customers who’ve increased their sales and revenue exponentially. In other words, we’re dang good at helping brands like you earn more repeat traffic from loyal customers. 

Plus, by offering a transparent pricing model and scalable month-to-month solutions, we make it easy for you to say “YES!” to partnering with our team. 

Start by scheduling a call with us today, and we’ll talk about how our expert customer service agents can help you reach your customer retention goals.

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