{"id":12020,"date":"2021-09-01T15:43:21","date_gmt":"2021-09-01T10:13:21","guid":{"rendered":"https:\/\/www.vue.ai\/blog\/?p=12020"},"modified":"2023-10-19T16:29:27","modified_gmt":"2023-10-19T10:59:27","slug":"retention-ecommerce-customers-retail","status":"publish","type":"post","link":"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/retention-ecommerce-customers-retail\/","title":{"rendered":"Decoding Retention: What Makes Customers Stay or Churn"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f4ff0c13edf\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f4ff0c13edf\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/retention-ecommerce-customers-retail\/#leveraging-the-product-to-drive-retention\" title=\"Leveraging the product to drive retention\">Leveraging the product to drive retention<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/retention-ecommerce-customers-retail\/#creating-enjoyable-shopping-experiences\" title=\"Creating enjoyable shopping experiences\">Creating enjoyable shopping experiences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/retention-ecommerce-customers-retail\/#stickiness-a-measure-of-loyalty\" title=\"Stickiness: A measure of loyalty\">Stickiness: A measure of loyalty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/retention-ecommerce-customers-retail\/#retention-in-low-frequency-usage\" title=\"Retention in low-frequency usage&nbsp;\">Retention in low-frequency usage&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/retention-ecommerce-customers-retail\/#delivering-convenience-from-the-get-go\" title=\"Delivering convenience from the get-go\">Delivering convenience from the get-go<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/retention-ecommerce-customers-retail\/#what-matters-most-for-retail-retention\" title=\"What matters most for retail retention\">What matters most for retail retention<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>Brands can get an edge from their competitors with exceptional customer experiences that pave the way to retention. Good customer experiences allow businesses to build loyalty and retain customers for the long haul. <\/p>\n\n\n\n<p>Let&#8217;s explore the three main aspects of this:\u00a0<\/p>\n\n\n\n<ol><li><strong>Price differentiation<\/strong> to ensure that businesses always have the edge for pricing, especially for high-volume products;<\/li><li><strong>Maximizing awareness <\/strong>for the product through personalised recommendations; and<\/li><li><strong>Drive campaigns<\/strong> to always be within the consideration stage of the customer.&nbsp;<\/li><\/ol>\n\n\n\n<p>While these are effective strategies to stay ahead of the competition, it comes down to the product, which is the most powerful differentiator.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"leveraging-the-product-to-drive-retention\"><\/span>Leveraging the product to drive retention<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<a href=\"https:\/\/bit.ly\/3ALnpLB\" target=\"_blank\" rel=\"noreferrer noopener\">Product-led growth<\/a> allows brands to put the product at the forefront of all activities, using it to drive acquisitions, conversions, and retention. This involves understanding the customer journey, identifying and solving issues customers face in their journey.\u00a0<\/p>\n\n\n\n<p>Grofers, one of India\u2019s most popular online grocery delivery services, measures product-led growth by addressing a single question<em> &#8211; whether the shopping experience enjoyable or not<\/em>.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><a href=\"https:\/\/bit.ly\/3ALnpLB\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/ur7Rn4GNbmlkmFxaixgXN0ap07M5Ujma5-SH3s4vIOjqw-HX_iKyInFBBtAQV-oGKFUe4LRXfzsn8Cs1MEAIfJiLXfJGR0iQkggYXC6ZUxSQ3qX04LAr73txNGKnOKboNA5G6XJX=s0\" alt=\"\" width=\"582\" height=\"146\"\/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"creating-enjoyable-shopping-experiences\"><\/span>Creating enjoyable shopping experiences<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To make shopping experiences enjoyable, brands need to understand what customers want and how the product helps them. They need to get understand the shopper&#8217;s mind and make the whole experience as seamless as possible, end-to-end.&nbsp;<\/p>\n\n\n\n<p>For instance, Decathlon, a popular sports e-tailer in the UK, focused on making their app experience seamless, encouraging customers to stay independent in their purchase journeys. The Decathlon team introduced a store location detector and a scan-and-pay feature, along with an \u2018Exit Store QR Code,\u2019 to onboard customers into an omnichannel experience. To prepare for a post-COVID world, the brand also introduced contactless purchase and pickup, which led to <strong>a 10% increase in their sales figures.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/fNR0ge2g9S2OiZDND8kE6Qo1VWywda6K7kbs9Hnt_rZnNDW3yddPmMT79Xxr2RHMatYQdwjD4cl1NGABd0uclYPHgU6ISdw6nQueQRSQ2ZsNiKf-WLJNKTpdvl3KGKo2M4YE6OCi=s0\" alt=\"\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"stickiness-a-measure-of-loyalty\"><\/span>Stickiness: A measure of loyalty<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Stickiness is the intensity with which customers repeatedly interact with a business. It measures loyalty and the ability to win new customers through referrals. Any product with high levels of stickiness will be able to retain more customers and achieve higher growth.&nbsp;<\/p>\n\n\n\n<p>For an online store like Flipkart, India\u2019s eCommerce giant, the challenge of stickiness is in the business model itself. It is uncommon for customers to shop every day, and this makes it challenging to create stickiness. If the brand doesn\u2019t remain the top choice for customers to make their purchases, it will be replaced by a competitor offering better prices, services, or a wider range of products.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/4JORoqeAzEkoSZreY0ApizIX5JwJDBLgH3UQOznNyZXxURS5b-Un2Kj4cP4_g4CsNvrxkYYLdHFkdoAYYXUgo7t7oddy00nTR0IkLFRWYDXR5aO-V0x-3rRHY_sr2bAuCyWv86At=s0\" alt=\"\"\/><\/figure>\n\n\n\n<p><strong>Through behavioral surveys, Flipkart understood that online purchases peaked during the first weeks of the month and reduced significantly after mid-month. <\/strong>To avoid losing customers during this interim period, Flipkart leveraged the power of gamification, creating short game videos that played sequentially. Customers who wanted a playlist of such videos were rewarded with a badge, and this experiment increased time spent on the website. As an allied benefit, Flipkart could also retain its customers because brand recall was strengthened.<\/p>\n\n\n\n<p>From the customer\u2019s perspective, a product is worth repeatedly using only if it helps get the job done efficiently. It should provide the simplest, shortest, and smoothest way to complete a task they otherwise find difficult to perform. This goes hand-in-hand with creating good customer experiences. Good UX removes friction in the customer journey, simplifying tasks and helping customers complete their intended tasks easily. Good UX is the fuel that drives <a href=\"https:\/\/bit.ly\/3ALnpLB\" target=\"_blank\" rel=\"noreferrer noopener\">product-led growth<\/a>, acting as a differentiator that can draw in more customers and turn them into loyal customers.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"retention-in-low-frequency-usage\"><\/span>Retention in low-frequency usage&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Apps with a low frequency of usage are often quickly forgotten since the average customer interacts with dozens of other regular utility apps every day. Even so, brands need to remain within the mind-space of customers to make them use their app when the need arises. The only way to ensure this is by delivering convenience right from the get-go.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/4N9j_G6B57Idarj8hn1DMOiq4bi43E5YYzC91Ti5tSVsrzD7XuViQC9h9A6_1OpciYkSuL6EbSaU11_QfZ2OrNHOgyR7zvvC3_tFwbY49jbB0QH7EYpWmic2FDSmX-n4GWWkiBWR=s0\" alt=\"\"\/><\/figure>\n\n\n\n<p>American bridal wear brand Cocomelody faced a unique problem: bridal customers wanted to see, feel, and try on dresses before purchasing, which they couldn\u2019t do online. Cocomelody introduced a \u2018Try at Home\u2019 campaign, which allowed customers to try any wedding dress for just $25. <\/p>\n\n\n\n<p><strong>The team segmented customers and sent out campaigns about this based on their purchase intent<\/strong>. <strong>This earned the brand a 14% in conversion rate.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"delivering-convenience-from-the-get-go\"><\/span>Delivering convenience from the get-go<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The first interaction any customer has with a product tests all expectations set by marketing and sales. A seamless onboarding experience is crucial for creating stickiness, and thereby retention. But the challenge here lies in creating an onboarding experience that is relevant to all customers.<\/p>\n\n\n\n<p>Not every customer is the same\u2014what one enjoys, the other might detest. Brands need to consider these complexities and create customized onboarding experiences for each customer according to their preferences.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-matters-most-for-retail-retention\"><\/span>What matters most for retail retention<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Everything is important\u2014even the post-sale experience matters for retaining customers and preventing them from looking for alternatives. Customers expect the best experience from their first interaction to their last. The only way to ensure this? Place the product at the center of everything. <a href=\"https:\/\/bit.ly\/3ALnpLB\" target=\"_blank\" rel=\"noreferrer noopener\">Product-led growth<\/a> is the fastest way for businesses to grow  acquisitions, conversions, and retention. The biggest brands of the world today are utilizing product-led growth to create great customer experiences, encouraging loyalty and retention.<\/p>\n\n\n\n<p><em>This article contains excerpts from an eBook featuring the world\u2019s fastest-growing consumer brands, like Samsung, Flipkart, OYO, Kredivo, and more. <\/em><a href=\"https:\/\/bit.ly\/3ALnpLB\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Read the full eBook here<\/em><\/a>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span> Brands can get an edge from their competitors with exceptional customer experiences that pave the way to retention. Good customer experiences allow businesses to build loyalty and retain customers for the long haul. Let&#8217;s explore the three main aspects of this:\u00a0 Price differentiation to ensure that businesses always have the edge for pricing, especially for  &#8230;<\/p>\n","protected":false},"author":23,"featured_media":12022,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1160,1522],"tags":[1360,199,890,288,876,1359,1358],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Decoding Retention: What Makes Customers Stay or Churn<\/title>\n<meta name=\"description\" content=\"The biggest brands of the world are utilising product-led growth to create great customer experiences, encouraging loyalty and retention.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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