The Importance of Customer Retention in eCommerce (Infographic)

by | Feb 14, 2017

For most eCommerce brands, customer acquisition budgets far exceed those for customer retention. As our infographic shows, there are very good financial reasons why your customer retention budget should be increased.


All the research shows that increasing customer retention budgets and efforts increases revenue and profit in eCommerce. Some of the key customer retention stats show:

  • It costs 5 times as much to attract a new customer as it does to retain an existing one (Lee Resources 2010)
  • The chances of selling to an existing customer is up to 12 times higher than selling to a new customer (Marketing Metrics)
  • The average value of a lost customer is $243 (KissMetrics)
  • 71% of customers have stopped shopping with a store due to poor customer service (KissMetrics)

Despite these facts, most eCommerce teams are focused on new customers. An eConsultancy study found that 44% of brands were more focused on acquisition, versus just 16% of brands who were more focused on retention.


How to Increase your Customer Retention Rate

Get your delivery and returns proposition right

According to Royal Mail, 42% of customers would prefer to shop with a retailer who offered simple and convenient delivery options. This means having a wide selection of delivery offers, from next day to click and collect and fully tracked services. Customers also expect to be able to return products easily, with 81% of shoppers say they want free and simple returns. (UPS) Free returns also leads to revenue growth, with CNBC reporting that offering a free returns policy leads to an increase in purchases of up to 357%.

Personalised Messaging

One of the key drivers for millennial shoppers in particular is personalisation. I.e Tailoring marketing messages and content towards each consumer. One study by USC Dornsife found that 85% of millennials are more likely to make a purchase if it is personalised to them. But how can brands gain the insight necessary to formulate a successful personalisation strategy? Here are three ways:

  1. Digital data collection, looking at previous purchase history, average order values, order frequencies and product categories.
  2. Email Surveys in order to collect quantitative data on customers.
  3. ENGAGE – A customer retention service which allows brands to gain invaluable qualitative consumer insight in order to drive relevant, personalised content designed to encourage further purchases. Learn more about ENGAGE here

What is ENGAGE?

Increase Customer Retention. Profitably.