210820 Keep Your Online Customers Coming Back
210820 Keep Your Online Customers Coming Back

Keep your online customers coming back: Three myths debunked

When e-commerce puts the world at every consumer’s fingertips, how can you make sure they choose your online store? And not just once, but time after time?

You need to stand out from the rest—it’s a cliché, but it’s true. Offering good prices and a wide range of products is important, of course. But with competition ranging from behemoths like Amazon to manufacturers looking to establish direct relationships, it’s not enough.

There are many myths about building online loyalty floating around. Let’s look at three of the most common:

Myth 1: Happy customers are loyal customers

No matter how good your store is, there’s no guarantee that customers will come back. It’s hard to hear—but satisfaction doesn’t automatically lead to loyalty. And getting it wrong just once can damage a relationship that might have taken years to build.

Always acknowledge any customer comments. It’s not always possible to put things right but showing that you care makes a big difference. However, remember that a lack of feedback doesn’t mean that all is well. In fact, no feedback at all suggests that shoppers might not be engaged with your brand. And if they aren’t engaged, they are unlikely to be loyal.

Showing that you listen is key. Make it easy to give feedback and tell customers what you do with it.

Showing that you listen is key. Make it easy to give feedback and tell customers what you do with it. Announcing that, say, you’ve changed packaging based on their feedback will make customers feel that their opinions matter. This will help build loyalty and encourage more people to contribute.

Myth 2: Personalised content builds loyalty

It’s not that personalised content doesn’t work, it’s that it’s often done badly. In fact, research shows that customers say being treated like a person, not a number, is very important to winning their business.

These days nobody is impressed by you putting their name in an email—or a postal mailer for that matter. To today’s consumer, personalised means relevant. They want recommendations and offers based on their shopping history and preferences. If you can do this effectively, your customers will feel that you care about their shopping experience, and they’ll be more likely to spend more and keep coming back.

A great way to generate relevant content and build loyalty is to encourage shoppers to contribute their own photos and reviews. Many brands—particularly in the fashion, leisure and homecare sectors—have done this very successfully. As well as providing other visitors with valuable content, it increases the connection between you and those contributing.

Consumers want recommendations and offers based on their shopping history and preferences.

Brands like Lidl and REMA 1000 have taken the opposite approach. They rely less on loyalty cards and buy-one-get-one-free promotions, making the lack of gimmicks central to their brand promise instead. This has established a loyal following of customers that trust them to offer “always low” prices.

You might not have the same level of influence as those brands, but you can still learn from their approach. Decide what you want to be known for and stick to it. Consistency is a great way to build trust, and consequently loyalty.

Myth 3: Discounts are enough to build loyalty

Sales can lead to customers coming back time and time again, until they don’t. With thousands of options, there’s always somebody that can offer even lower prices.

An alternative is to offer a rewards-based loyalty programme. The Body Shop has done this well—its customers can earn points which they can redeem for money-off vouchers or a donation to a charity. This has helped strengthen its brand values and build a sense of community among its customers.

Decide what you want to be known for and stick to it. Consistency is a great way to build trust, and consequently loyalty.

Make it easier

There’s no magic solution to building customer loyalty—but there are things that definitely get in the way.

Many retailers struggle with online cart abandonment rates. A common cause is a cumbersome checkout process. It’s easy to lose shoppers if you make gathering their details difficult or if you don’t offer the payment options they want. The easier you make it, the more likely they are to complete their purchase, come back and recommend your store to friends.

We can help. Our Nordea Connect payments platform makes it easy for you to offer a seamless checkout experience. With a single, simple integration you’ll be able to offer a wide range of payment options. It supports all the options you’d expect—like Visa, Mastercard, Apple Pay and PayPal, and the popular Nordic options—like Swish, MobilePay, Vipps and Siirto. And coming from Nordea, both you and your customers can be confident that your transactions are secure.

Visit nordeaconnect.com to see how you can make your store more convenient and give customers another reason to come back time after time.

The information provided within this website is intended for background information only. The views and other information provided herein are the current views of Nordea Bank Abp as of the date of publication and are subject to change without notice. The information provided within this website is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient.

The information provided within this website is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided within this website has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results.

Nordea Bank Abp is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction.

The information provided within this website may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Bank Abp.

Related articles