Building a successful ecommerce business — or any business for that matter — requires you to retain customers and foster loyalty. Profitability in ecommerce is found through customer loyalty.
In a previous article, I explained the 80/20 rule and the concept of the lifetime value of each customer.
The 80/20 rule holds that 20 percent of your current customers provide 80 percent of your business.
The key is to find out who those 20 percent are and cater to their every need.
These existing customers have a value — what they’ve already spent and what they will spend over a lifetime with you.
To increase the lifetime value of a customer — and nurture your relationship with them — it’s a good idea to develop a retention program.
Here are 3 ways you can increase your customer lifetime value with your 20 percent:
- Personalize the customer relationship and build rapport
- Make yourself available and answer their questions
- Deliver a monthly email follow up to improve communication and retention
You build lifetime value by nurturing your current customer base, listening to their needs, and delivering high quality customer service among other things.
Paying careful attention to your existing customers will help you build a more profitable and sustainable ecommerce business.