Top strategies for customer growth and retention in eCommerce

Rising in a tough retail environment The past year was a tough one for retailers, with growth in retail spend plunging from 9.3% YoY to just 2% in 2023.¹ Yet, while consumers were tightening their belts, eCommerce fared better than other retail channels in 2023. 

More households shopped online last year than ever before² which presents a prime opportunity for eCommerce brands to boost sales – particularly during year-end sale events. One way to make the most of these events this year is to start thinking strategically about building and nurturing your customer base. 

Here are five ways to cultivate a winning strategy that fosters customer growth and loyalty - during peak season and beyond.

1. Personalise wherever possible

Gone are the days of generic marketing blasts. Customers not only appreciate a personalised experience – they’ve come to expect it. And this goes beyond just using their first name in text messages, emails or newsletters. Leverage customer data to tailor product recommendations, reminders of an abandoned cart or special offers. 

For example, you might craft a weekly email campaign that’s based on a customer’s purchase history, browsing behaviours and preferences – complete with personalised offers and deals. Or you might send an automated, personalised SMS when a customer leaves something in their cart, perhaps with a discount code to nudge them towards completing that purchase. 

2. Up-level loyalty

Aussie shoppers are a loyal bunch. In fact, 84% are active members of a retail loyalty program, and 69% do their best to shop with between one to three brands.³ 

In fact, businesses that increase retention rates by just 5% experience an increase in profits of 25-29%.¹

You can hook more of these engaged customers by creating a value-laden loyalty program that incentivises repeat purchases and builds brand affinity. For example, offer points for each purchase (50% of shoppers rate a points system much higher than spend-based discounts or card linking).³ Access to regular discounts or exclusive products, and cashback on spend are also popular features of loyalty programs.

For inspiration, look to brands like Adairs, whose Linen Lovers loyalty program boasts over one million members and accounts for around 80% of the brand’s daily sales. Adairs invests in personalising Linen Lovers wherever possible. 

As Senior CRM & Loyalty Manager Emma Porter says, “We have a ‘Linen Lovers first’ mentality. In every department, our teams are always asking questions like, ‘And what will we do for Linen Lovers? How will this work with Linen Lovers? How will we make sure Linen Lovers get more from this?’” 

Then there’s Australian tea company Roogenic, whose exclusive Leaf Society club helps with customer retention. 

As Community Manager Imogen Mason explains, “We send our Leaf Society members a specially crafted loose-leaf tea blend each month, meticulously created by our expert blending team. These unique blends are never repeated and not available for non-member purchase.”  

3. Nurture new customers

Acquisition is just as important as retention. Review your nurture programs to make sure they’re compelling to potential and past customers. Scrutinise your website and makes sure it’s helpful and informative. And, if it’s relevant to your products or services, consider offering handy resources like buying guides to reassure on-the-fence shoppers. 

Also think about how you’re reaching new customers. Invest in strengthening your social media presence and build a community around your brand by sharing engaging content, running interactive contests and responding promptly to enquiries. 

Imogen emphasises the importance of creating engaging content, saying, “We love to share the journey of our products, using captivating visual and behind-the-scenes stories and customer testimonials to create a strong sense of community and trust. We also encourage customer reviews, which builds trust when new customers are looking at purchasing for the first time.” 

4. Sweeten the deal

Planning your peak strategy early is always a good idea and a huge part of this involves thinking about how your offers and rewards will help you stand out from the competition. 

For example, online personalised gift shop CMC Gold launches a set of offers that keep customers engaged throughout the sales period. “We plan to always have something to say, so every couple of days over that month we’ll do emails talking about different products and offers – we’ll do a sale, but also a ‘golden ticket’ offer and a ‘win your order back’. We always trying to keep it interesting,” says co-founder Maurice Sacco.

And the persistence pays off. “We find that the people who purchase in the sale period have the biggest spend throughout their customer lifetime.” 

Over at Roogenic, Imogen believes customer growth can be achieved by offering exclusive deals and bundles. “We like to run limited time offers to entice new customers to try Roogenic. We also offer starter kits which highlight the value and convenience of our products, making it easy for customers to try multiple products and find their favourite.” 

And for existing customers, Roogenic builds retention by adding thoughtful additions to customer orders, such as complimentary health guides and wellness checklists.

5. Continually hone the customer experience

To keep your customers onside into the long term, you need to provide a seamless and positive customer experience. This extends from the usability of your website to the simplicity of the checkout process. 

At Roogenic, it’s all about prioritising customer needs, every day. “One of the ways we stand out is by offering a dedicated customer care phone line, allowing you to speak directly with a real person about our products or your order. You can even place an order over the phone if that’s more convenient,” says Imogen. 

“This personal touch is rare for businesses of our size, and our customers truly appreciate the option to connect with one of our community officers.” 

eCommerce continues to show resilience and growth potential in this challenging economic landscape, especially during sale events. By leveraging personalised experiences, nurturing loyalty and refining your customer experience, you can tap into new opportunities for long-term growth.