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5 Ways to Improve Customer Retention

5 Ways to Improve Customer Retention


5 Ways to Improve Customer Retention

The 80/20 rule is commonly applied across multiple areas of a business, but nowhere is this rule more important than when it comes to your organization’s customer retention. In this context, the rule relates to the fact that for most organizations, 80% of your profits come from just 20% of your customer base.

This arrangement leads to a fairly obvious problem however… If that 20% leaves, then so does 80% your profits.

With customer retention such a critical part of running a successful ecommerce business, this week we wanted to explore 5 different strategies you can use to improve your customer retention. Whether you’re just starting out online or you are already established in the industry, you’ll want to start implementing these strategies as soon as possible.

1. Create Personalized Content

The internet has evolved tremendously over the past decade and with that evolution came the expectation of a personalized experience online. For businesses, personalizing your messages and content helps to create a brand that customers are excited to interact with and it’s widely accepted that personalized content has a bigger impact on consumers than the impersonal alternative.

But to get that personalized content out to consumers requires the ability to capture data in a way that’s easy to work with. Having names, emails, or demographic information is only useful if you don’t have to dig to turn it into personalized content.

And that’s where our second tip comes into play…

2. Deploy A Solid CRM Strategy

Having a clear Customer Relationship Management (CRM) strategy may seem obvious but you would be amazed at home many businesses cut corners here. And the reality is that those businesses are making a mistake.

A recent study found that CRM users see an average increase of 27% in their retention when implementing CRM software. So while the benefits of a CRM system do extend outside of retention, it is a foundational tool when it comes to keeping your customers engaged.

3. Leverage Chatbots & Facebook Messenger Bots

For many small businesses, they simply don’t have the resources to provide 24/7 support. But as chatbots are fully automated and instantaneous, they can provide the appearance of prompt service to anyone who needs it. Chatbots may be a relatively new phenomenon but there’s no denying that they are quickly becoming a huge asset in the space of customer retention.

When customers browse your website they want to feel like they are a priority for your organization and preliminary data is already showing that chatbots very good at accomplishing this objective. A recent study showed that chat bots retained customers considerably longer than other customer retention strategies.

4. Consider Adding Onsite Gamification

Gamification is a concept that has be deployed across the ecommerce space for years and it’s still one of the most effective techniques to keep customers engaged while pushing them to complete actions on your site. It’s also a great way to incentivize repeat purchases by adding a sense of progression and competition that keeps users coming back.

Simple elements like leaderboards, badges, and status updates can help customers compare their progression to others. When incorporated with other retention efforts like loyalty programs and email promotions, gamification is an incredibly powerful tool to grow the lifetime value of your customer base.

5. Email Marketing Still Works

We’ve said it many times on this blog and it’s still true today… Email marketing continues to be one of the best ways to bring users and customers back to your site. Research has shown that sending loyalty emails helps to improve customer lifetime value and boost transactions.

The secret to getting the most out of your email list is to ensure you’re collecting relevant consumer data when building your email list. More consumer data means more ways to segment your messages (remember tip number one) and let’s you consistently deliver engaging content to your audience.


Customer retention is a critical aspect of any successful ecommerce business and plays an important role in your brand’s growth. The exciting part about getting serious about your retention strategy it that there’s a good chance you already have the 20% of your customers who can fuel that growth. So instead of waiting for them to make the second move, take some initiative and use one of the 5 techniques you’ve seen here to drive their next purchase.


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Mohamed Abdallah

Regional Marketing Manager



  1. Avatar

    Henri Hazougi

    February 7, 2019 at 2:42 pm

    Thanks for putting this together Sayyed. Great read.

    • Dalia El Gammal

      Dalia El Gammal

      February 13, 2019 at 11:03 am

      Thank you, we appreciate your feedback!
      Stay tuned and you will know more about the “know how’s” of gaining your customers trust

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