All You Need To Know About Ecommerce Retention Strategy!

In the world of marketing, Retention marketing is now becoming more and more prevalent in e Commerce. The main focus of retention marketing is to create engaged customers which return to your store to buy items again.
 

But here, the main question aris is where should you start with your own retention strategy? Read the blog to learn what to do before you getting started, how to allocate your budget for marketing, and when you can expect to notice the results. Let’s start!

Where Do You Start?
 

Every well established building started with a high quality framework, like every tree started with roots. This is what retention marketing is. You can build something amazing, but you have to lay a strong framework.
 

Measuring your existing ecommerce stats will prove you where you are, so that you can measure the effectiveness of your strategy.
 

You need to have a benchmark for all the standard ecommerce metrics such as conversion rate, average order value, etc.  But apart from metrics, you also need to have benchmark key retention metrics, before starting your plan. For consistency, you must use data from a one year period for doing some calculations.

Repeat Customer Rate (RCR)
 

The repeat customer rate of your store is the percentage of your customer who is coming back to make a purchase again. According to ecommerce seo company, it is actually more expensive to acquire new customer than retain an existing one.
 

To calculate RCR, take the number of repeat customers and then divide it by total number of unique customers.
 

Customers With multiple Purchase / Unique Customers = RCR

Purchase Frequency
 

purchase frequency of the store is the average times a customer shop with you in a given period of time.
Total number of Orders / Unique Customers = Purchase Frequency
In fact a slight increase in purchase frequency could lead to a wide increase in revenue.

How Much Retention Marketing Do You Need?
 

First of all, your need to decide how much focus to put on retention. You invest marketing dollars into a content strategy, email marketing rankings, search engine optimization, and retargeting. If you want your retention marketing efforts to be effectual you have to do the same.
What Should Your Store Do?
The effectiveness of retention marketing is truly decides by the two main factors. Life-stage of your store, and nature of your products.

Life-Stage of your store:
 

If you have new ecommerce site, you may have small customer base. Once your store has established customer base, it is more beneficial to focus on retention instead of acquisition.

What You Sell
 

A returning customer is more worth to your business, if you have a product which has high likelihood of repeated purchases, you will benefit more from retention marketing.

Retention marketing obviously doesn't provide overnight results or any instant appeasement. But, if you stick to it, you will surely notice some phenomenal results very soon. How long you have to wait to get success, that depends. However, six months to a year is a common timeframe. Retention marketing is as similar rolling a snowball, once your get it started with it, it becomes easy for you.

See more : https://www.10seos.com/