Customer retention rate is the percentage of people who make several orders from your online store. These people are your loyal fans, generating 44% of total revenue and 46% of orders—despite only accounting for 21% of a brand’s customer base.
Loyal customers are clearly more profitable. They already know, like, and trust your DTC brand. The real question is: How do you turn more first-time buyers into your best customers?
Managing retention can feel overwhelming, especially if you’re a DTC operator looking to give existing customers personalized retention marketing at scale. This guide shares how to identify and improve your ecommerce customer retention rate, with a focus on retention emails.
What is customer retention in ecommerce?
What’s the average ecommerce customer venezuela phone number list retention rate?
Customer retention stats and trends
The best ecommerce customer retention strategies and tactics
Customer retention email strategy: tactics and best practices
What is customer retention in ecommerce?
Customer retention rate is the percentage of people who make repeat purchases from your ecommerce store. If you sell to 10,000 people each month and 2,500 people return to make another purchase at some point in the next year, for example, your customer retention rate would be 25%.
Other metrics to benchmark your ecommerce customer retention include:
If the average customer makes three purchases of $40 each, for example, your CLV would be $120. Use this to measure the effectiveness of retention strategy. An increase in CLV means even if the number of purchases someone makes doesn’t increase, it’s working—customers are spending more money with your brand.
Customer or revenue churn: The percentage of customers who leave a business over any given period. Businesses in the consumer electronics industry have the highest average churn rate, at 82%, but the lower, the better.
Customer loyalty rate:
The percentage of existing customers who join your loyalty they can also be used program. People who join the program show an intention to buy again—even if they haven’t made a second purchase yet.
“Retention is about revenue. Sure, you could think about acquisition when you think about revenue. ‘How do we bring more customers in to combat the customers we’re losing?’ And you’re right, that’s a piece of the puzzle. But if you only focus on getting new betting email list customers, giving little thought to the ones you’ve already attracted, you’re missing a giant piece of the puzzle. More DTC brands could benefit from putting as much focus on retention as they do on new customer acquisition.” —Val Geisler, customer advocacy lead at Klaviyo.