6 Proven WooCommerce Customer Retention Strategies in 2024

When was the last time you made an effort to re-engage with your customer retention strategies and encourage them to make another purchase? If it’s been a while, it’s probably time to start working on a fresh plan for keeping your WooCommerce store visitors as your recurring customers.

Because of this, retaining existing customers is one of the most effective strategies for business expansion that is now available.

To give you an idea of how significant this is, an increase in customer retention of only 5% can bring an increase in profitability of up to 95%.

Yet in the increasingly cutthroat world of eCommerce, finding ways to get your existing customers to spend more money tends to give a return on investment that is significantly larger than finding new customers.

We’ll take a look at WooCommerce customer retention and show you how to create helpful strategies that will work. Are you prepared to get things going?

Let’s get to it!

What is WooCommerce Customer Retention

When we talk about retention in WooCommerce, we are referring to a group of strategies that have been coordinated to encourage previous customers to make additional purchases.

In a word, the goal is to convince customers who have only purchased from your WooCommerce store once to become repeat customers and, ultimately, brand enthusiasts.

Unlike customer acquisition, which results in the creation of new customers, customer retention works to increase the value of each existing customer.

Let’s dissect that question right now since, as a WooCommerce store owner, you’re certainly curious about the optimal time to concentrate on customer retention.

When Should You Focus on WooCommerce Customer Retention

A balanced acquisition and retention strategy is essential for rapid expansion. The stage of your store’s lifetime has a significant impact on how much resources you can devote to each tactic.

Simple ways to keep customers coming back should be considered when your business expands and new ones are added to its customer base. For instance, you can set up a retention email flow.

As your company develops, you should divide your efforts nearly evenly between customer acquisition and retention strategies. In this case, it may be prudent to launch a customer loyalty program.

After a certain period (say, after 5 years of steady development), retention should replace acquisition as the primary focus of your business.

That doesn’t mean you should give up on trying to acquire new customers. It’s crucial to find new customers to replace the ones who go.

But, at this time, one-time purchases won’t help you maximize your profits. Just imagine how much more money you’d make with just a 5% increase in customer retention as your business expands!

How impressive is that?

So, it makes sense, but the products you sell might also have an impact on how big of a priority retention should have at your WooCommerce store.

Let’s find out what sectors and store owners need to up their retention efforts.

Who Should Focus Most on WooCommerce Customer Retention

In reality, though, almost everyone needs to take some kind of retention measures. Yet, companies that sell more frequently to their customers stand to benefit the most from a strategy that prioritizes retention through the cultivation of a high customer lifetime value.

If your company is located on the right side of the matrix, you ought to give some thought to moving your emphasis away from customer retention and toward customer acquisition (presuming that your company is not just starting).

Yet, regardless of where you land on the matrix, you should never ignore the importance of the acquisition or retention of information. You will never stop needing new customers. All that needs to be done is a shift in your emphasis and a reorganization of your objectives to achieve the best possible results.

What Are The Benefits of Customer Retention

Winning over a new customer is an absolute delight. But, well-known brands understand that repeat business is where the real profit resides.

This is why:

1. Customer Retention Maximizes Profits

Assume Facebook advertising costs you $30 to bring in a new customer. Let’s say they decide to spend $35 on your ads to come. Five dollars is a nice profit. That’s fine, but hardly earthshaking, right?

Now, for example, you find out that for the low, low price of 0.001 cents or even free who knows, you can send them an email that makes them want to return and spend another $35. You’ve seen a margin growth of about 700% in recent times.

Getting the idea?

Winning a customer is like winning half the war. Furthermore, we know that highly satisfied customers spend more money than moderately satisfied ones.

You may avoid the never-ending struggle against increasing ad prices and dwindling profitability by implementing a solid retention plan.

2. Retention Allows You to Outspend Competitors

The processes of learning and remembering are complementary. Spending more on customer acquisition is possible when the value of each customer is maximized.

Let’s say, for the sake of argument, that your average annual customer spends $90 with you. You’ll still make a profit after a year if each customer spends just $35 the first time they purchased from your store.

When compared to your competitors, who don’t value customer retention, you’re ahead. They will work feverishly to lower their cost per acquisition to under $30 to generate some early revenue.

But today is not their day of luck. They will get terrible results from the ad auctions if you outbid them. If you know, you know.

3. Retention is Easier Than Acquisition

Most brands are so focused on getting new customers that they don’t realize they’re doing things the hard way. Research shows that selling to existing customers is up to 3.5 times easier than selling to new customers.

When you think about it, that makes sense because your current customers already know who you are, what you sell, what you stand for, etc.

The fact that they already bought from you once, means there’s no reason they wouldn’t do it again. So, if you like easy sales, make a strong customer retention program.

4. Retention is (no cost) Marketing in Disguise

Let’s say you have a favorite product or company. Particularly one that has made great efforts to ensure you know how much you are appreciated.

You probably tell your friends and family about that business quite often.

In such a case, you’re not alone.

It is proven that focusing on customer retention can reduce your acquisition costs by increasing your mouth-of-mouth marketing strategy.

Also, customer referrals result in a 200% increase in average order value compared to visitors who discover your business independently.

With a committed fan base spreading the word about your business, you may expect explosive growth and unprecedented financial success.

In summary, retention makes it possible to:

Increase the amount of money spent by customers.
One must outbid the competition.
Increase revenue with less work.
Build up a group of customer-focused marketers.

I don’t know what else could motivate you more to improve your retention rates after hearing that.

Let’s keep reading to find out how to track customer loyalty on your WooCommerce store.

The 5 WooCommerce Customer Retention Metrics You Need to Track

Good retention strategies start with trustworthy information.

Depending on your objectives, you can choose from a wide variety of customer retention measures.

In this section, however, we will focus on just four of the most essential approaches to analyzing customer behavior.

Well, time to turn it in.

1. Returning Customer Rate

The percentage of customers who come back is the most fundamental indicator for measuring customer loyalty.

To determine this metric, multiply your percentage of returning customers by your percentage of all customers.

Understanding your rate of returning customers might help you gauge your current success.

Additionally, monitoring it over time will show you how successful your retention strategies have been.

The percentage of returning customers is known as the “recurring customers,” and it can range from 100% (where 100% of sales originate from returning customers) to 0% (where 100% of sales come from new customers).

2. Customer Purchase Frequency

The regularity with which customers make purchases can help you gauge the success of your marketing campaigns.

To determine this, we divide the total number of orders by the total number of unique customers (month, quarter, year).

The more often a customer purchases, the more you may learn about their buying habits and optimize your retention tactics for them.

3. Average, Mean & Mode Order Value

After you’ve built up a solid base of loyal customers, you should shift your attention to the average amount they spend with each purchase.

By dividing total income by the total number of orders, we can determine the average order value.

Investigating your AOV can reveal hidden insights into your customers’ buying habits. Especially if you keep tabs on the average and average order value of each customer over time.

If you find that a relatively small number of your most loyal customers account for the vast majority of your sales, you can opt to create a special program just for them.

You may also try introducing a tiered rewards program to get potential customers who typically don’t spend much more interested in your products.

In addition, by combining your AOV with a cohort analysis, you can anticipate when customers are most likely to leave and provide them with reasons to stay.

4. Customer Lifetime Value (CLV)

The average amount of money a customer brings in over a period of time is what we call their “customer value” (month, year, lifecycle).

CLV can be determined in several methods, but one of the easiest is as follows:

(Average Order Value x Customer Retention Rate x Customer Churn Rate) – Customer Acquisition cost.

You may want to check out the dedicated blog to increase the average order value.

When customer lifetime value is low, it’s important to focus on retention and satisfaction. So checkout

5. Net Promoter Score

One great indication of customer loyalty is the net promoter score (NPS), which measures the percentage of satisfied customers who would suggest your brand to others.

You can get customer feedback for your NPS by conducting surveys via email campaigns, text messages, and thank you pages.

The Net Promoter Score (NPS) measures customer satisfaction by comparing the number of people who are enthusiastic about your company with the percentage of people who are not.

How to Improve WooCommerce Customer Retention: 6 Strategies That Work

With the theory and benefits of retention under our belts, let’s explore practical tactics you can apply to keep your customers coming back.

1. Upgrade Your Order Confirmation/Thank You Page

For most WooCommerce businesses, their thank you page is an undiscovered treasure trove of conversion opportunities. But this is especially true when it comes to customer retention. Here’s how to leverage it:

a) Make a Memorable First Impression

The Order Confirmation/Thank You page is the very first brand touchpoint for new customers.

Thank you pages, unlike emails, always get opened, making them an ideal venue for making a positive first impression.

To properly welcome new customers to your branding, you should update your thank you page with relevant language, graphics, and brand elements, or even a video.

b) Collect Customer Feedback and Data

Customer feedback (such as your Net Promoter Score) and other information can be collected on the thank you page in addition to making a good first impression.

Customer responses will be strong because their recent buying experience is still fresh in their memories.

The more information you have about your customers (their birthdays, purchasing habits, etc.), the more targeted your marketing may be and the more likely you are to make a sale.

c) Post Purchase Offers

Including promotions on the Thank You page can convert first-time buyers into important customers almost instantly.

Consider that the most qualified buyers are the ones who have recently purchased from you.

Using a well-executed upsell or cross-sell while they have their card out is a surefire approach to get them to make another purchase.

We’ve observed that thank you pages increase net revenue by 10-15% after evaluating thousands of retailers.

If you haven’t tried it already, this retention strategy is one you should consider.

2. Create a Loyalty Program

Think about it: If you know you’ll be rewarded for completing a task, won’t you feel obligated to see it through? That’s exactly what we would’ve done too!

The fact is, your customers aren’t exceptional either.

Birthday gifts, beta access to new software, individualized support, and redeemable points are just some of the goodies that customers can look forward to.

Not only do these perks save customers money, but they also play on their emotions.

According to studies, “emotional incentives” account for about 75% of what promotes customer loyalty, therefore it’s best to offer a mix of both discounts and emotionally desired rewards.

3. Send Retention Emails

One of the most effective ways to maintain customer interest is through email marketing.

A solid email marketing strategy has the highest conversion rate of any channel, as has been repeatedly demonstrated.

To ensure you are always providing appropriate material to your list, you must learn the basics of segmentation.

Some ideas for email marketing campaigns

Celebration emails. (e.g. Birthday, public holidays, etc)
Happy Anniversary! (e.g. one, two, three-year buying anniversaries)
History of the Corporation. (e.g. five years in business)
Special discounts. (say, twenty percent off) only for being a loyal customer.
Messages with early access. (e.g. discover these styles before anyone else)

4. Build a Virtual Community

Creating a Facebook group is an easy approach to increasing customer loyalty. Customers are more likely to remain loyal to your company if you direct them to a Facebook group where they can discuss issues, share advice, and receive assistance from support staff.

Software companies like ours frequently employ this strategy. Again, If you know, you know!

Take the 1+ million strong Instapot Facebook group as an example. This is a free engagement metropolis for Instapot, with over 1 thousand monthly postings.

Consider how you may bring potential customers closer to your business by creating a lively Facebook community for your brand.

If you have a Facebook group, you should put a link to it on your order confirmation page. The concept of constancy in psychology suggests that this is the optimal location from which to attract members to your online community.

5. Use Customer Accounts (The Right Way)

There are pros and cons to having customer accounts as a business owner. One positive aspect of accounts is that they facilitate order tracking and repeat purchases.

Yet, obligatory accounts are a significant time commitment for first-time purchasers, and research shows they can reduce conversion rates by as much as 35%.

So, how can we get beyond this obstacle? Customers can purchase as “guests” during checkout, and you can persuade them to sign up for an account afterward.

Emailing a customer an invitation to make an account is another option for boosting adoption after a purchase has been made.

6. Provide Outstanding Customer Support

The term “customer support” often connotes a simplistic focus on fixing problems for customers.

But to maximize retention, you need to get over that mentality and show customers why they should stick with you rather than your competition.

There are many factors to consider while developing a customer service plan, but here are the bare bones you’ll need to succeed in winning over your target audience:

Get in touch with you easily. Everyone knows how frustrating it is to have to jump through hoops to get help. Find out how your customers prefer to contact you and always respond quickly.
Self-service is the way to go when dealing with trivial difficulties, so adopt this policy. Fewer support tickets mean happier customers and vice versa for a well-designed FAQ website or knowledge library.
Employ a LiveChat or Helpdesk service like Crisp or Helpscout to centralize all of your communication with customers and keep track of their activity across all of your channels.
Take advantage of the ‘rule of reciprocity’ by going above and beyond for your ideal customers. Turn ordinary customers into brand supporters through handwritten letters, unexpected presents, and social media shout-outs for social proof.

WooCommerce Customer Retention Doesn’t Have to be Complicated

Customers are the most valuable part of an established WooCommerce store. One of the most effective methods of expanding a business is to focus on providing more value to the customers you already have.

But, regardless of where you are on your WooCommerce journey, improving customer retention will increase both revenue and profitability.

In summary, the methods for retaining customers discussed here are:

Improve your landing page’s first impression with some upgrades.
Sending out retention emails. (on occasions and buying anniversaries)
Create a lively online neighborhood. (social media platforms)
Inspire your customers to sign up for an account if you allow guest checkout. (but only post-purchase)
Pay attention to what your customers are saying (through feedback) and consistently deliver exceptional support.

To keep customers coming back, it’s important to give them a shopping experience that blows their minds. Making a good first impression increases the likelihood that a customer will return and spend more money with you.

Wrap Up

It’s no secret that customer retention is the backbone of any successful business, and the same goes for WooCommerce.

WooCommerce customer retention strategies can help you retain customers, build brand loyalty, and drive repeat purchases. By implementing the six proven strategies outlined in this article, you’ll be well on your way to retaining your customers and keeping them coming back for more.

Remember, it’s not just about acquiring new customers – it’s about nurturing the ones you already have. So start implementing these strategies today and see the positive impact they can have on your WooCommerce business.

That’s all for today! Until next time.

Adios!