Customer Retention, Value and Loyalty

Chapter 8 of Ecommerce Best Practice: Converting Demand

Companies that ensure loyal customers return enjoy greater basket values and can drive sales in more cost-efficient ways. This chapter looks at the different ways ecommerce teams can promote customer retention, as well as ways of measuring and calculating it. It also considers average order value, an important metric to track and optimise in ecommerce.

17 minute read

Brands with loyal customers are more resilient, enjoy greater basket values and can drive sales in more cost-effective ways. Accordingly, ecommerce teams must have a strategy for promoting customer retention, ensuring customers are happy to return to their store again and again. This chapter considers customer retention, including how to measure and calculate it. It covers:

Strategies to promote retention: What are the fundamental steps ecommerce teams must take to drive value from customer retention?
Average order value: What can the metric of average order value tell marketers, how should brands calculate it and what factors might have an impact on it?
Managing returns: How can businesses minimise returns and manage the return process to reduce costs?