On this page

Customer Retention

Top 10 Customer Retention Strategies in eCommerce in 2024

Published by
Yugansh Arora
December 1, 2023

Did you know that returning customers make up about 44% of a business's total revenue? Customers are the base of every business. When customers return to your product, it means that they appreciate your services and products. 

Retaining these valuable customers is the key driver of a business's success. This is what you may roughly term as "customer retention". But what is customer retention? What are the strategies to retain your customers and keep them returning for your products?

In this detailed blog post, we will discuss what customer retention is and its importance for eCommerce businesses. Furthermore, we will also explore the top 10 customer retention strategies you must know about. Let's explore!  

What Is Customer Retention? 

retention of customers in eCommerce

Customer retention, in simple terms, refers to the practice of keeping existing customers engaged and satisfied to ensure they keep coming back for more. It's not merely about acquiring new customers but fostering long-term relationships with those already in the fold. Essentially, it's the art of keeping customers satisfied, engaged, and loyal to your brand over time. 

In practical terms, imagine you stroll into a local coffee shop, and they remember your favourite brew and offer you a loyalty card for that extra personal touch. That's customer retention marketing strategies in action – a business's commitment to understanding and meeting the needs of its customers to foster loyalty. 

Beyond the initial sale, customer retention is about nurturing relationships. It's the difference between a one-time transaction and a lasting connection. When a company prioritises customer retention, it means they're dedicated to providing not just a product or service but an ongoing positive experience. 

In the vast digital landscape, customer retention marketing strategies involve strategies to keep customers engaged, satisfied, and coming back. From personalised communication to loyalty programs, businesses work tirelessly to ensure that customers feel valued and appreciated.

Why Is Customer Retention Important for Ecommerce Businesses? 


Customer retention stands as a cornerstone of success for ecommerce businesses, playing a pivotal role in sustaining growth and fostering a loyal customer base. Below listed are eight reasons why retention of customers in eCommerce is of utmost importance.

1. Consistent Revenue Streams

Retained customers are a reliable source of revenue. By keeping existing customers engaged and satisfied, ecommerce businesses ensure a steady and consistent income, reducing the dependency on acquiring new customers constantly.

2. Cost-Effectiveness

Acquiring new customers typically incurs higher costs than retaining existing ones. Furthermore, the odds of cost-effectiveness are in favour of retaining existing customers, with a 60-70% likelihood that they will explore and purchase a new product. In contrast, the success rate of selling to a new customer is a mere 5-20%. 

Customer retention strategies, such as loyalty programs or personalised marketing, prove to be more cost-effective in the long run, optimising the marketing budget.

3. Word-of-Mouth Marketing

Satisfied customers become brand advocates. They share positive experiences with friends and family, essentially becoming free promoters for the ecommerce business. Word-of-mouth marketing is a potent force in attracting new customers.

4. Building Brand Loyalty

Ecommerce businesses that invest in customer retention marketing strategies build brand loyalty. Loyalty is not just about repeat purchases; it's about creating a bond between the customer and the brand, making them choose the brand over competitors.

5. Feedback Loop Improvement

Retained customers are more likely to provide valuable feedback. This feedback loop becomes an invaluable tool for ecommerce businesses, offering insights into areas that require improvement, leading to a continuous cycle of enhancement.

6. Cross-Selling and Upselling Opportunities

Knowing your customers' preferences allows for targeted cross-selling and upselling. Ecommerce businesses can recommend complementary products or upgrades, increasing the average transaction value and overall revenue.

7. Data-Driven Decision Making

Retained customers provide a wealth of data. By analysing their behaviour, preferences, and purchase history, ecommerce businesses can make informed decisions, tailoring retention marketing strategies and product offerings to meet customer demands.

AI Shopping Concierge for Every Customer

Enable your customers to reorder, get recommendations for new products, manage orders or ask any product questions with AI agent using text messaging.

See a demo

Top 10 Customer Retention Strategies in E-Commerce in 2024

The Beginner's Guide to E-Commerce Promotions - Justuno

An increase in customer retention by 5% can skyrocket a business's sales by 25% to 95. Sounds surprising, right? But what are the best customer retention strategies for eCommerce businesses in 2024? Below are 10 top customer retention strategies you must be aware of.

1. Enhance Customer Service and Support 

More than 33% of customers go for other companies on receiving just one poor customer experience from their go-to brand. Thus, one of the key customer retention strategies in ecommerce is the enhancement of customer service and support. 

This goes beyond mere transactional interactions; it's about building meaningful connections. By focusing on personalised and responsive customer service, ecommerce businesses create a positive and memorable experience for their customers.

Firstly, responsive customer service ensures that any issues or concerns are promptly addressed, demonstrating a commitment to customer satisfaction. This resolves immediate problems and showcases the business's dedication to its customers' well-being. 

Moreover, a proactive approach to customer support helps in preventing potential issues, fostering a sense of reliability and trust.

Secondly, personalisation plays a key role in enhancing the overall customer experience. Utilising data from past interactions, ecommerce platforms can tailor their communication, product recommendations, and assistance to individual customer preferences.

This personalised touch not only makes customers feel valued but also increases the likelihood of repeat business. Thus, prioritising customer service as a part of customer retention strategies in 2024 is about creating a customer-centric ecosystem. 

2. Initiate Loyalty Programs

customer retention marketing strategies_Everything You Should Know About Ecommerce Loyalty Programs

Implementing loyalty programs is a strategic move that can significantly impact customer retention. Loyalty programs involve rewarding customers for their repeat business, creating a sense of exclusivity and appreciation. These programs often include points systems, exclusive discounts, or early access to new products.

In detail, loyalty programs establish a reciprocal relationship between the customer and the ecommerce business. By offering tangible incentives, such as discounts or special perks, businesses encourage repeat purchases and enhance customer engagement. Customers feel a sense of belonging and value when they are part of an exclusive loyaly program.

Furthermore, loyalty programs contribute to customer satisfaction by providing a clear and immediate benefit for their loyalty. This positive experience strengthens the emotional connection between the customer and the brand. As a result, customers are more likely to choose the ecommerce platform over competitors, contributing to long-term customer retention.

3. Employ Upselling and Cross-Selling Methods  

This retention marketing strategy involves enticing customers to consider additional or upgraded products complementary to their initial purchase. By intelligently suggesting related items or upgrades, ecommerce businesses not only enhance the value of the customer's shopping experience but also boost the average transaction value.

Upselling entails encouraging customers to choose a higher-end product or a more feature-rich version, emphasising the additional benefits. Cross-selling, on the other hand, involves recommending related products that complement the customer's original purchase. This synergistic approach not only maximises revenue from each customer but also deepens the customer's engagement with the brand.

Through personalised product recommendations based on previous purchases or browsing behaviour, retention of customers in ecommerce platforms is a cakewalk. This meets the customer's needs more comprehensively and showcases the business's understanding of their preferences, fostering a sense of appreciation and loyalty.

4. Personalise Your Marketing Efforts

Push Notification Strategies_personalized marketing for customer retention

Personalising marketing efforts is one of the powerful customer retention strategies in e-commerce. According to Accenture, a substantial 91% of consumers exhibit a higher inclination to engage with brands that demonstrate adeptness in recalling their preferences, leveraging this information to furnish pertinent offers and recommendations. 

The strategic implementation of personalisation stands as a pivotal driver for augmenting revenue streams in the realm of online commerce, influencing key performance indicators like Customer Lifetime Value (LTV) and Average Order Value (AOV).

In its comprehensive analysis, McKinsey underscores personalisation as not only a force multiplier but a fundamental business imperative. An impressive 70% of consumers perceive it not as a luxury but as a basic expectation. 

The impact of personalisation on the retention of customers in eCommerce extends beyond immediate transactions, wielding a substantial influence on customer retention. By sculpting a more relevant and enjoyable experience, businesses can fortify customer satisfaction, foster loyalty, and stimulate heightened engagement.

Ecommerce enterprises aspiring to imbue their marketing endeavours with personalisation can deploy a spectrum of strategies. These include the judicious utilisation of customer segmentation, the establishment of loyalty programs, and the adoption of website personalisation techniques.

Initiatives like personalised abandoned carts and wish-list emails serve to gently nudge customers towards completing their transactions by reminding them of products they previously expressed interest in. Furthermore, personalised order follow-ups express gratitude and encourage customers to share their feedback through product reviews, contributing to a more interactive and tailored engagement. 

5. Encourage Customer Feedback by Actively Seeking Reviews and Testimonials

By actively soliciting feedback, businesses can acquire valuable insights into customer satisfaction, pinpoint areas for enhancement, and cultivate trust with prospective clients. Moreover, the influence of positive reviews and testimonials extends beyond mere endorsements, serving as potent social proof that significantly impacts the purchasing decisions of other consumers. Let's figure out why this strategy is such a powerful option for e-commerce brands: 

  1. Establishing Trust: Positive reviews and testimonials function as social proof, providing potential customers with reassurance that others have enjoyed positive experiences with your products or services. Trust stands as a pivotal element for customer retention, with individuals more inclined to remain loyal when confident in the dependability and quality of your offerings.
  2. Elevating Customer Satisfaction: The proactive pursuit of feedback signals a genuine regard for customer opinions, underscoring your commitment to their satisfaction. By systematically addressing concerns voiced in reviews, you showcase a dedication to ensuring customer contentment.
  3. Spotting Areas for Improvement: Constructive criticism within reviews yields invaluable insights into facets of your business that warrant enhancement. Whether pertaining to product quality, shipping processes, or customer service, addressing these aspects contributes to an overall improved customer experience and, consequently, heightened retention rates.
  4. Strengthen Brand Loyalty: When customers observe that their feedback not only garners acknowledgement but also fuels positive changes, it fosters a sense of loyalty. They perceive themselves as integral members of your brand community, nurturing enduring relationships.
  5. Encourage Repeat Business: Contented customers who share favourable feedback are more predisposed to become repeat patrons. By actively seeking reviews, you initiate a cycle of positive experiences, feedback, and recurrent business, a dynamic that significantly contributes to the retention of customers in eCommerce.

6. Offer Special Bonuses, Perks, and Gifts to Customers

Implementing customer retention strategies that incorporate exclusive bonuses, perks, and gifts for customers stands as a proven methodology for enhancing customer retention within the realm of e-commerce. The overarching objective of this strategic approach is to convert one-time buyers into long-term, loyal customers, thereby contributing to sustained revenue growth and a perpetually robust sales performance. Let's break it down:

  1. Differential Advantage: In the competitive landscape of e-commerce, the ability to distinguish oneself assumes paramount significance. The introduction of special bonuses and exclusive gifts has the potential to distinguish a business, endowing customers with a sense of exclusivity and uniqueness, thereby elevating their perception of the brand.
  2. Establishing Emotional Bonds: Gifts and perks serve as catalysts for the establishment of emotional connections between customers and a brand. By expressing appreciation through tangible means, businesses can cultivate a profound sense of attachment, fostering long-term loyalty among their clientele.
  3. Reducing Churn: Customer attrition, or churn, represents a prevalent concern for any e-commerce enterprise. By consistently offering special bonuses, you prevent customers from switching to competitors, as they would lose out on these additional benefits.
  4. Word-of-mouth marketing: Contented customers are inclined to share their positive experiences, particularly in relation to the supplementary perks received. This organic, word-of-mouth marketing serves as a potent mechanism for attracting new customers who are enticed by the augmented value proposition associated with the brand.

7. Introduce Subscription Services

Examples of Subscription Ecommerce_customer retention strategies in eCommerce

Subscription services create long-term customer relationships, fostering loyalty and facilitating repeat purchases. Statistics indicate that returning customers tend to expend approximately 67% more than their initial counterparts, consequently increasing overall revenue.

Furthermore, subscription models establish a consistent and foreseeable revenue stream, allowing businesses to engage in more effective financial planning and resource allocation. This stability, in turn, fortifies the business's long-term viability. 

In addition to the aforementioned advantages, subscribers often enjoy cost savings compared to one-time purchasers. This augments the perceived value of the subscription framework, thereby incentivising sustained customer commitment.

An additional dimension to the appeal of these retention marketing strategies services lies in the wealth of data they flow regarding customer behaviour, preferences, and engagement patterns. The judicious analysis of this data yields invaluable insights, empowering businesses to refine marketing strategies and tailor offerings with greater precision to meet evolving customer needs.

The automatic renewal feature in subscription services introduces a layer of convenience for customers, mitigating the friction typically associated with the purchase process. This seamless and hassle-free experience is pivotal in encouraging customer retention, contributing to a positive and enduring customer-business relationship.

8. Prioritise SMS and Email Marketing

Email & SMS Marketing for retaining customers in eCommerce

Text messaging and email marketing platforms serve as channels for direct and personalised communication with clientele, presenting a distinctive avenue to convey customised messages and exclusive promotions. These mediums play a pivotal role in fostering immediate engagement, ensuring customers are well-informed about product updates, promotional activities, and pertinent content. The precision in timing afforded by SMS and Email Marketing further empowers businesses to dispatch targeted messages at optimal hours, thereby enhancing audience engagement.

In contrast to strategies primarily focused on customer acquisition, cultivating and sustaining existing customer relationships through SMS and Email emerges as a cost-effective methodology. The utilisation of these channels for customer retention serves to minimise the expenses associated with acquiring new patrons, thereby efficaciously optimising marketing budgets. 

Maintaining a loyal customer base proves to be a more economically prudent strategy than acquiring new clientele. A modest enhancement of 5% in customer retention rates can yield a substantial augmentation in profits, ranging from 25% to 95%.

The integration of automation tools within SMS and Email Marketing serves to streamline communication processes, affording businesses the capability to sustain consistent engagement without unduly burdening resources. Drip campaigns and automated follow-ups contribute to ensuring that customers receive timely and relevant information, fostering a sustained and meaningful relationship with the brand over time.

9. Focus On Transparency in Delivery, Returns, and Refunds

Prioritising transparency in delivery, returns, and refunds constitutes a pivotal strategy for bolstering customer retention within the e-commerce sector. The dissemination of unambiguous and forthright information pertaining to these facets is instrumental in cultivating trust and fostering loyalty among clientele, thereby contributing to an augmented rate of customer retention. The following points are some of the considerable merits of this strategy:

  1. Facilitation of Decision-Making: Providing easily comprehensible policies serves to empower customers to make well-informed decisions. Transparent delineation of terms governing delivery, returns, and refunds instil confidence in customers, enabling them to select products with the assurance that subsequent post-purchase processes are customer-centric.
  2. Reduction of Uncertainty: Articulate communication concerning delivery timelines, criteria for return eligibility, and procedures for obtaining refunds plays a pivotal role in diminishing customer uncertainty. A clear understanding of what to anticipate engenders a sense of control, leading to heightened satisfaction levels and an increased propensity for repeat business.
  3. Demonstration of Accountability: Transparency exhibited in delivery, returns, and refunds demonstrates a commitment to accountability. When challenges emerge, openly addressing and resolving issues underscores a customer-centric ethos, thereby fortifying the brand's reputation for reliability.

10. Gather Customer Insights and Preferences through Surveys

By systematically examining customer feedback, enterprises can discern areas of satisfaction and dissatisfaction, enabling them to strategise on customer retention and elevate the overall customer experience. This methodical process empowers businesses to cultivate robust retention of customers in eCommerce while enhancing their service delivery. 

Frequent and methodically executed surveys yield invaluable insights into emerging trends and dynamic shifts in consumer behaviour. Adopting a proactive stance, businesses can position themselves at the forefront, adjusting their product portfolios and marketing approaches to align with the ever-evolving expectations of their clientele.

The feedback garnered from these surveys assumes a pivotal role as a fount of information for product development and refinement. By comprehending the specific features or aspects that resonate most with customers, e-commerce enterprises can strategically prioritise enhancements that directly contribute to heightened customer satisfaction and foster brand loyalty.


Customer retention is the lifeblood of any successful business, acting as the secret sauce that transforms one-time buyers into loyal patrons. Customer retention is not just about keeping customers; it's about creating a sustainable ecosystem where customers feel valued and businesses thrive.

In 2024, the top 10 customer retention strategies have emerged as game-changers for eCommerce businesses. These customer retention strategies go beyond mere transactions, focusing on building lasting relationships. Ecommerce enterprises that understand and invest in the importance of customer retention are better positioned to navigate the complexities of the digital marketplace and achieve long-term success.

If you're looking forward to boosting your custom retention stats using conversational AI, we suggest you check out App0

App0 is a no-code, AI-driven messaging platform that revolutionises customer retention. App0 adapts to customer behaviour, boosting repeat revenue effortlessly. Powered by machine learning and large language models, it seamlessly integrates into your product—no coding headaches.

With App0, transform shoppers into loyal customers:

  • Boost retention and repeat revenue
  • Provide instant, cost-effective customer support
  • Deliver an exemplary, personalised customer experience
  • Scale your business effortlessly with AI concierge
  • Easily integrate into your tech stack

Let App0 redefine your eCommerce success. Request a Demo now!

Customers Retention Strategies: FAQs

Boost Retention and Repeat Revenue in eCommerce With Conversational AI

App0 offers a flexible no-code/low-code platform to enable eCommerce enterprises to launch AI agents faster & at scale. Customer experience for retail & eCommerce powered by AI messaging. Schedule a demo to learn how AI can revolutionise customer engagement & loyalty.

See a demo

Launch conversational AI-agents faster and at scale to put all your customer interactions on autopilot.

Download Ebook