Customer retention is all about convincing your existing customers to make repeat purchases from your ecommerce store.
Rather than primarily focusing on bringing in new customers, ecommerce brands that use a customer retention strategy try to build a loyal customer base that will give them repeat business over a long period of time.
There are a few different customer retention metrics to pay attention to, but the most important is the average customer retention rate. This refers to the percentage of customers who make (at least) one more order after their first purchase.
The higher your average customer retention rate, the more new customers are becoming repeat customers.
A few other important customer retention metrics are:
- average order value
- purchase frequency
- customer acquisition costs
- average customer value
- customer churn rate
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