Measuring Customer Loyalty Is Easier On the Web
November 7, 2013
Physical retail stores keep track of their customers with complex e-commerce systems from loyalty programs to surveys, but their digital counterparts have a much easier time of figuring out their customers’ shopping habits says “How Loyal Are Your e-Commerce Customers?” from Woopra. The article points out that it is much harder and more expensive to attract brand new customers than it is to retain older customers because they are experienced with the store and can often act as an advertising mouthpiece.
Retaining customer loyalty is not difficult for an e-commerce Web sites if the implement a few analytical features. Monitoring a basic retention report will show how long and often customers engage on a Web site. Another way to use the retention report is to track how long it takes customers to come back and make additional purchases after their initial one.
It is very important to understand which marketing campaigns attract the most loyal customers. This will allow online retailers to net the biggest profit:
“Many marketers find that customers sourced from different campaigns have varying degrees of engagement and loyalty. This is largely due to the nature of each channel and how customers engage with you through that channel. Oftentimes we rely on guesswork or assumptions to determine which channels will bring the highest quality leads. Yet sometimes the numbers tell a different story, or at least give you hard data to back up your estimations.”
The magical tool here is a retention report. Retention reports hold all the answers to retaining online customers. Why can it not be that simple for physical retailers? In a way it often seems too simple that a retention report holds all the answers. What about customer reviews of products and social media streams that discuss an e-commerce retailer? Can a retention report attract these?
Whitney Grace, November 07, 2013
Sponsored by ArnoldIT.com, developer of Augmentext
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