5 Effective Strategies to Improve Customer Retention

5 Effective Strategies to Improve Customer Retention

Customer Acquisition and Customer Retention are two of the most important aspects of any eCommerce business. While acquiring new customers can be arduous, retaining customers is, sometimes, even more challenging. Once a visitor/prospect becomes your customer, you need to ensure that they stick to your brand for the long run.

You might be surprised to know but around 65% of a company’s business comes from existing customers (Source: Small Business Trends). If you lose the grip on your existing customers, you will lose them to your competitors.

Let’s try to find out how you can improve customer retention in your online business. In this article, I will discuss 5 customer retention strategies that can be helpful to retain customers.

1. Launch a Loyalty Program

A loyalty program is a marketing strategy used by Brands where they reward some loyalty points to customers on every successful purchase, which they can use a discount on their next purchase. The motive behind offering loyalty points is to encourage customers to continue shopping from the same brand in the future.

Many eCommerce businesses run loyalty programs and they have proved to be an effective customer retention strategy. They ensure repeat purchases and ultimately improve customer retention. It creates a win-win situation for both the Brand and the customer.

Loyalty points help in Customer Retention

Loyalty Points module by Knowband is a feature-packed module that lets you provide loyalty points to your customers on a number of factors. If you are thinking to add a loyalty points system to your business, this module will be a perfect fit. It is available for a number of eCommerce platforms. Check out:

PrestaShop Loyalty Points Addon

Magento Loyalty Points Extension

OpenCart Loyalty Points Extension

2. Personalize Your Emails

Email marketing is still one of the best ways to strengthen your relationship with your customers. So once they land in your email subscribers’ list, take the onus of making them your valued loyal customers.

Here is what you can do. After the user has made the purchase, thank them for showing trust in your brand and choosing your platform to shop. Ask them about their shopping experience. It is a nice way to start the conversation and leaves a good sign for a healthy relationship in the future.

Afterwards, you can ask your customers if they had any issue with the product they purchased. Appreciate them for leaving a review. It shows that you value your customers’ opinions.

Then in your next email, you can recommend them some products that could be related to their previous purchase or some products that they might be interested in. And this is how your emails should go always. Keep engaging with your customers at regular intervals. This makes it one of the effective customer retention strategies.

Personalized Emails

Keep a few things in mind. Do not clutter your emails with just the Sales tag every time, else you would land in their spam folder or they might even unsubscribe. Add a personal touch to your emails. Customers feel more connected to your emails if it contains a personal touch.

You need to add value to your customers’ lives if you want to improve customer retention.

3. Bring Surprises to Your Loyal Customers

Is there anyone who doesn’t love surprises? We all do. Surprises are a delight and bring pleasure in one’s life.

Surprise your existing customers at regular intervals with some amazing deals. Offer them credits or discount code and persuade them to come back to your store. If you have a database of customers’ birthdays, send them exclusive offers. Add happiness to their lives and make their day more memorable.


There cannot be a better way to improve customer retention than making your customers feel special and treating them well. Customers love it when they are presented with some personalized offers, especially when they expect it least. It leads to a good brand image and leaves a positive remark about your Brand.

This customer retention strategy does more than just improving customer retention. It does free word-of-mouth, builds customer loyalty and trust, and improves brand loyalty.

Loyal customers need to feel that you still care for them and haven’t forgotten their contribution to your business.

4. Find Out Customers Who Haven’t Purchased Since Long

It is always a good idea to find out why your existing customers have not made it again to your store rather than regretting it later when they are all gone.

Once you get that data, reach out to them and ask why they haven’t shown up since long or is there something that is bothering them from making the purchase again?

Ask for their feedback on how you can improve or what led to their discontinuity from your Brand? Always welcome suggestions. Make an emotional connect, tell them that you miss them. And if they have decided to part ways, tell them that you would love to see them back. The relationship should end on a high note.

Personalized Emails

You should also often conduct surveys to know what your customers feel about your brand, products or services. And this is important to know beforehand so that you can work upon those issues.

This customer retention strategy will definitely help you improve your customer retention rate.

5. Enhance Your Customer Support

One of the most important customer retention strategies is to provide a quality support service to your customers. Quality customer support has a huge role to play in a successful consumer-brand relationship.

You can never grow as a brand if you fail to resolve your customers’ queries. I mean how awful it would be if customers put their trust in your brand but cannot reach to you for a quick resolution when needed. This way, customers would always remain unsatisfied and will likely stop shopping from your brand.

Customer Support

If you do not want to lose your customers to your competitors, provide them with a quick response, be it via live chat, email, customer support number or social media. Listen to their queries and sort out their problems as soon as possible.

A high-quality customer support service is the best way to win your customer’s trust and improve customer satisfaction. It is then only a matter of a few minutes to see a frustrated customer turning into a happy and satisfied customer.


While it is important to acquire new customers, not turning away the interest of the existing customers is essential too. The latter holds more potential for your business.

You might discover some other customer retention strategies as well, however, I find these 5 customer retention strategies to be the most helpful and effective to improve customer retention rate. Once you get a clear idea of how to retain customers, you will be able to deal with this issue quite conveniently.

Right customer retention strategies provide a number of benefits to your eCommerce business, including improved Brand Loyalty, Customer Loyalty, Customer Acquisition, Brand Relationship, etc.

Just be honest to your customers and stand to your promises. That’s it for customer retention management.

If you find this information useful, do leave a comment below. What customer retention strategies have you implemented for your business? What has been your success rate?

Joe Parker

We boast of the best in the industry plugins for eCommerce systems and has years of experience working with eCommerce websites. We provide best plugins for platforms like - Magento, Prestashop, OpenCart and Shopify . We also provide custom module development and customization services for the website and modules..

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