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eCommerce Customer Retention Rates

13 Best Strategies to Improve eCommerce Customer Retention Rates (2025)

💬 If you're looking for new strategy/tactical ideas and thoughts on improving customer retention rates, hopefully, this checklist can help. :)
Published On:
3/12/24

💬  I find many brands tend to not pay enough attention when it comes to measuring (and having top of mind) customer retention rates.

Here's a few reasons why I pay a close eye to performance over time (and how it can seriously help with growth):

  • Helps with predictability for growth, and not solely relying on acquisition (which is costly as we know)
  • Loyalty customers tend to come back and can also help improve AOV (as they more likely love the brand and will spend more) - in other words, greater revenue potential
  • I means you're building a brand that people love (advocacy and referral) - the ultimate way to build a true competitive advantage in your category is by having people come back (over and over)

Numerous other important reasons why, but these are some of the main factors I keep in mind and share with clients/those I mentor.

Top Initiatives, experiments, strategies and tactics when it comes to increasing customer retention rates (in eCommerce)

I'm sharing some of the key areas of eCommerce customer retention which I've seen work well - these are great starter points for those in their early growth stages, and for those more experienced, I'm sure there are some good ones for you too. :)

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Loyalty/Reward systems are totally worth the investment to incentivise repeat purchase rates.

It's easy to setup a program custom to your store thanks to the plethora of 3rd-party solutions that exist on the market. You can offer the likes of special gifts, discounts and any perks to motivate customers to engage/buy over and over. It's also a great data collection exercise to see what customers want to keep buying/give feedback on. Plus, how they recommend and share with friends.

On this note, make sure to setup reward points based on whether they share content on socials related to your brand (works wonders for brand sharing).

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Really critical as a founder/marketer to be obsessed with actively seeking data collection opportunities for product/brand feedback.

So easy to setup up review-based tools or surveys, where they can provide a slick 1-click experience to collect data, which can really inform key decisions. There's so much you can do with the data you collect, including improving products, offerings, automation for experiences, and lots more.

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Of course, it's one thing to collect quantitative feedback and data through the likes of tools, but you also need to balance out data collection with qualitative insights from customers directly. You can do this by asking questions directly to customers via emails newsletters (at scale), 1-1 emails, chatbots, or via website pop-ups.

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Make sure you're seen that it's easy for visitors/customers to contact you for support.

Share collateral via various key channels where you communicate frequently (like your social channels, email, etc) and remind visitors/customers to reach out anytime.

Highlight via screenshots, images and quotes (with CTAs) about your customer support experience, as it's a great USP, especially for potential new purchasers.

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Keep customers top of mind when it comes to creating support experiences, especially when it comes to AI automated messages.

Don't leave customers hanging/making their jobs harder - whilst leveraging AI/automated response tools for faster answers, if there are custom requests, route them to your support team where a real human can assist.

Remember - customer support is everything when it comes to building brand and driving conversions.

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This speaks for itself in terms of importance, but it's an important thing to be continuously improving on.

Meticulously look at ways to improve CX from end to end post first purchase - this includes having separate segments for email flows based on data such as AOV, specific product purchases - and provide tailored content that adds value.

Of course, whilst this does depend on the business, a great shipping experience is key - especially for first-time customers. Keep the comms up and be prompt when it comes to any inbound queries.

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Many brands don't do this but I've seen it to be really effective for some brands I've consulted with, plus I've been the beneficiary of.

Why not surprise first-customers with a special small gifts, or perhaps a personalised message with a discount?In many ways, you may be doing this by offering a "discount" for the next time they make a purchase, but spin it in a way that makes it feel "exclusive" and personalised to their recent purchase. It all comes down to the messaging and the way you frame it.

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Personalised experiences are awesome for creating a more seamless, enjoyable and relevant interaction for visitors/customers.That includes leveraging dynamic content recommendations, product recommendations, personalised messaging and pop-up triggers based on website behaviours, and more.

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I don't need to dive into the benefits of subscriptions programs too much as they are pretty evident if you can make them work. They really do work wonders for improving customer retention rates.

My top two recommendations here are to use a robust 3rd-party subscriptions app solution (which luckily many of them being cost-effective) and provide incentives to get people to convert - like discounts, early-bird specials, bundles, etc.

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People ultimately buy products, but they also buy into your brand (and the mission you're on). Patagonia is a classic example. Really highlight your mission and how your organisation is striving towards a movement/goal/vision. This no doubt plays a big role in motivating key customer segments to come back and be loyal to the brand.

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Provide value-add resources to educate customers through your blog and social channels. One thing you want to avoid as a brand is "selling" all the time, so make sure to provide interesting content related to your product and brand, including the likes of tutorials, video UGC tips, and more. Whenever you create content, be smart about distribution through your existing channels. When you post a piece of content, share via socials and newsletters - then take it to the next level by adding it to key email flows.

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Remarket to visitors/customers with personalised incentives/offers/discounts across their journey.

This part of eCommerce certainly never stops. Remind customers through awesome social proof, reviews and video-lead UGC with past positive brand and product experiences.

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Events are awesome for numerous reasons, with the primary reason why I see them so effective is connecting people behind the brand with customers who love them. In a world where things are more transactional/fast-moving, having face-to-face interaction can really help your brand stand out.

Certainly recommend looking into developing events like pop-up stores, product launches, VIP experiences (for top customers and even for loyalty members), and other curated content event experiences. With key top-performing segments, you gotta look after your most loyal customers, especially those who keep buying again and again.

My recommendation as a focus is to provide tailored event-based experiences for top segmented customers that are "exclusive" (or at least feel exclusive/personalised) to them.

Heya 👋 from Author
Dan Siepen
👋 G'day everyone, Dan Siepen here from down under 🇦🇺🦘🐨. I'm an experienced growth marketer w/ 8+ years exp. across SaaS, B2B, DTC & eComm. Get to know more about me (check my homepage too) & if you want to connect, just reach out. 👇
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Important - thoughts & considerations
It's important to state that these checklists are for fun, and hopefully can help you (as the reader) with idea generation, brainstorming and strategic discussion thoughts for your startup/brand (and chats with your team members) - BUT, like with anything you read online, you (as the reader) know your context best (whereas I don't). Not everything you read will be applicable, and people will value these various checklists I've created differently based on experience - however, I'm sure regardless of your experience or context, hopefully there's a good nugget/insight somewhere that you'll pick up/can help (or at least, hopefully create some sort of a 'spark' for a new idea/initiative/experiment, etc). Plus, I'm open to feedback (and love hearing it - the good and bad), so if there's something missing, or you have any questions, feel free to reach out to me. 🙂

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