Why returning customers are essential and how to increase the return rate

As an eCommerce business, you put a lot of effort into attracting customers to buy your products. However, if you wish to increase brand loyalty, you’ll want to put more effort into making sure your customers return.

For most businesses, returning customers are even more important than new customers. In this article, you will learn about the impact they have on your revenues and how you can increase the chances of them buying from you again.

Why making your customers return is important

Returning customers, the ones who have purchased at least twice from your brand, have a conversion rate of 27.62%, whereas new customers have a conversion rate of 2.01%. Returning customers also account for 54.93% of overall revenues.

Attracting new customers might not be easy, but making your customers return is a big deal and something you should focus on. This is why businesses have begun to put more effort into the post-purchase experience they offer their customers.

As an eCommerce company, you also have to remember that face-to-face in-store interactions are important elements that don’t exist online. Therefore, you need to find a way to make customers feel less anxious about buying from you.

What can you do to increase customer retention?

1. Make it easy to order online

When it comes to ordering online, customers may feel hesitant about the product being exactly as they expected it to be. They might feel anxious thinking about having to make a return if the product doesn’t meet their expectations. In a study we’ve run, we found that more than 60% of consumers say that the fear of having to return a product is what prevents them the most from ordering it online.

Therefore, you need to make things very simple for them. Improve your website’s navigation and speed, and ensure your website’s UX is optimized. Make the return policy very clear and easy to find, and offer free return shipping and exchanges. Provide customers with as much information about your product as possible and give them precise shipping information, such as when they can expect to receive their package.

2. Increase delivery speed

Once customers have purchased their product, they will start to experience a feeling of ownership even though they don’t have it in their hands yet. We actually wrote a blog about customers' pre-parcel anxiety. You can check it out here. Delivering products fast will reduce this anxiety, and your customers will appreciate your efficiency.

But how can you increase delivery speed? If you’re not already using a delivery software, you might want to consider this option, as it is the most effective way to avoid wasting time when delivering. Make sure to choose a delivery software that has a powerful route builder, as it will allow you to build routes in a few seconds instead of spending hours on route planning. It will automatically create the best routes and optimize them in real-time to make sure your drivers avoid traffic and are always on the fastest route.

3. Make it possible for customers to track their deliveries in real-time

Customers want honesty and transparency from brands, and the best way you can show them that is by letting them track their parcels in real-time. This allows customers to know precisely when their package will be delivered so they can plan their day accordingly. This will reduce their anxiety and increase their trust.

To allow customers to track packages, choose a delivery software that offers last-mile delivery tracking using real-time data. Your customers will use the tracker to see the location of their deliveries. According to our survey, more than 90% of consumers will track their deliveries if given the option.

According to a Gofordelivers survey, 73% of supply chain professionals don’t provide real-time tracking. This gives you an opportunity to stand out from the competition by offering a better delivery service for your customers.

Meet CIGO Tracker

CIGO Tracker is a best-in-class, cloud-based platform to increase deliveries, service calls, and pick-ups for your business. It scales as you need it and provides a state-of-the-art, “last mile” delivery experience that will thrill your customers.

Driven by innovation, an unwavering commitment to customer service, honesty, and trust, CIGO delivers the best, most flexible delivery tracking software in the industry.

At CIGO, we are always on the lookout for new features that we can add to our delivery software to improve your daily operations. If you would like to learn more about our delivery software, book a demo today.

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