Updated on Sep 3rd, 2024

Need to Know 

  • As global spending continues to decline due to high inflation and economic uncertainty, shoppers are prioritizing savings and switching to lower-priced retailers.
  • Despite the economic downturn, over 35% of customers are willing to pay more for brands they are loyal to, and over 65% plan to stay loyal to their favourite brands.
  • eCommerce retailers can ensure they maintain a consistent customer base by prioritizing experiences that inspire loyalty like making their site easier to use, personalizing user touchpoints, and leveraging reviews.
     

As global spending continues to decline1, so too does consumer loyalty2 — with one notable exception.

Due to high inflation and economic uncertainty, shoppers are delaying large purchases and prioritizing savings where possible. They are also switching to lower-priced retailers over the more expensive brands they may have preferred in the past.

However, in a recent survey, over 35% of customers reported that they are willing to pay more for the brands they are loyal to, and over 65% said they plan to remain loyal to the brands they love.3

Keep reading to learn how to make your eCommerce brand a customer favourite, with three expert tips and tactics to boost loyalty and secure your long-term revenue.

How can eCommerce retailers instill customer loyalty?

In previous decades, one great experience with your brand could be enough to create a loyal customer for life — but in the crowded eCommerce marketplace, brands that earn their customers’ loyalty must be able to prove themselves time and again to keep it.

Ultimately, customers want to feel like their favourite retailers recognize them as individuals, with tailored experiences that align with their preferences. In fact, over 80% of respondents to a recent global survey said that feeling “known” by a brand influences them to buy from it again.4

What strategies can help eCommerce retailers create customer experiences that build loyalty?

Retailers can build and maintain a loyal customer base by providing experiences that show they deeply understand their shoppers’ lives, wants, and needs.

Check out three of our experts’ best practices for driving loyalty and associated tactics below.

  1. Make your site effortless to use.

In a recent survey by Forbes Advisor, 45% of consumers said that site navigation is a factor in their loyalty to a brand.5 Whether your customers are shopping on your website or application, their experience should be consistent, simple, and intuitive, with thoughtful recommendations that reflect their preferences.

Site Navigation

There’s a lot you can learn from your customer data.

Together with usability testing, you can get a view of how real users are navigating your site. If they are encountering any obstacles that are stopping them from making or completing their purchases, you can make adjustments to improve their user journey and increase their chances of making a purchase.

Site Search

Similarly, you can use your site’s search platform to see what people are searching for and enhance their experience.

By leveraging AI and natural language processing, you can account for common misspellings, human error, and complex queries, so that every search returns relevant and helpful information for your customers.

Making use of an AI-powered search platform like Klevu is a way to bring together your customer experience with your business priorities by balancing serving up relevant search results while also drawing attention to profitable items and categories.

Strategic Merchandising

Giving products a more prominent place on your eCommerce site based on seasonality or showcasing high-value items can help capture customer attention and increase the chances of those products being purchased.

Customers value product recommendations — so much so that they’re four and a half times more likely to add those items to their shopping carts!6

Once you have a solid understanding of your customer preferences, you can utilize platforms like Adobe Commerce, using its features to showcase and cross-sell related products, improving customer engagement and increasing average order value (AOV).

 

  1. Treat your customers like the individuals they are.

Customizing your brand’s content and offers based on user demographics, search history, website behaviour, and past purchases effectively reduces friction, increasing sales and loyalty.

It also boosts user satisfaction — brands that recommend products based on past purchases are preferred by 91% of consumers.7

Leveraging a solution that organizes user information for you, like a Customer Relationship Platform (CRM), can save user information and help you tailor your communications with customers to make the most of every opportunity to deepen your relationship with them.

A CRM also ensures a consistent experience and reduces potential frustration if customers ever require assistance from your team.

Additionally, storing information your customers have shared with you in the past such as login or payment details can also help you further streamline user experiences and facilitate a smoother checkout process.

 

  1. Let your satisfied customers be your brand ambassadors.

Ninety percent of users check customer reviews before making a purchase8, and over 40% would recommend a brand they are loyal to.9

You may already have some customer reviews in place on your website, but even at the best of times, it can be challenging to capture product reviews from customers.

To help fill out your site using the reviews you have received, you can leverage advanced User Generated Content (UGC) platforms like BazaarVoice to collect and display syndicated reviews that inspire fast and confident purchases.

Building customer loyalty takes time and investment, but the results are more than worth it when it comes to building your long-term revenue and weathering economic storms.

 

Partnering with professionals who have deep knowledge of the retail industry and your customer expectations can help you accelerate your customers’ journey to loyalty. Get in touch with our eCommerce team here.

Want to dive deeper into our methods for enhancing your eCommerce site to boost sales and loyalty? Download our eBook to learn about the successful strategies we've implemented for our eCommerce clients.

1 https://www.conference-board.org/brief/global-economy/retail-sales-analysis-may-2024
2 https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/state-of-consumer
3 https://www.yotpo.com/the-state-of-customer-loyalty-and-retention-2023/
4 https://www.yotpo.com/the-state-of-customer-loyalty-and-retention-2023/

5 https://www.forbes.com/advisor/business/customer-experience-trends/
6 https://www.salesforce.com/blog/holiday-readiness-differentiate-personalized-experiences/

7  https://www.coveo.com/blog/ecommerce-personalization/
8 https://www.portent.com/blog/analytics/research-site-speed-hurting-everyones-revenue.htm
9 https://www.yotpo.com/the-state-of-customer-loyalty-and-retention-2023/