Online retailers need to do more to build a sense of loyalty among shoppers, experts have advised.
According to research by Optimove, nearly two-thirds of first-time shoppers with ecommerce brands don’t come back to make a second purchase.
Customer loyalty among online shoppers is faltering with 63 per cent of first-time shoppers with an e-commerce brand failing to return to make a second purchase.
Alon Tvina, Managing Director of Optimove, therefore believes online retailers should focus on offering “real value” to their customers in order to retain them.
“Customer attitudes have shifted: loyalty is dead, and we are now in the age of ‘value exchange’,” he commented.
Mr Tvina believes rewards and bonuses will therefore become a crucial part of the effort to bring people back for repeat transactions, but he stressed these must be suited to each individual customer.
“This means retailers will need to get to know what makes each of their customers tick, and market to them on an emotionally-intelligent level,” he said.
Brands were advised to use artificial intelligence tools and automation programmes to start gathering insights on their customers.
Mr Tvina said this would help them identify what type of marketing works best to boost revenue from each kind of customer.
He argued that by gaining these insights, online retailers would be in a stronger position to build long-term relationships with many of those who might otherwise make only a single purchase.
“Retailers need to be able to sort through their customers and learn what makes each individual tick, to keep them coming back,” he added.
63% of online shoppers only make one purchase with an e-commerce brand The Industry
