Are you looking for the best KPIs (Key Performance Indicators) to improve the customer retention of your eCommerce business? Without any doubt, customer retention is vital to growing your online business. Practically, keeping existing customers is 5 times cheaper than getting onboard with new ones,according to Forbes. To do so, you need to choose the rightcustomer retention KPIsthat can set realistic targets for your business. In this blog, we will discuss why customer retention is key for your eCommerce business and what are the important KPIs for it. customer retention KPI
What is Customer Retention and Its KPIs?
In simple terms,удержание клиентовrefers to keeping new customers engaged and coming back to purchase your product or service. It only happens when you provide enough value in your products, as a result; customers stay loyal over time.
KPIs aka keys Customer Retention Metrics help you track how many customers stick around. These customer numbers show the total value these loyal customers bring to your business over time. Examples of customer retention metrics include customer retention rates, customer lifetime value, customer churn rates, and Net Promoter Scores.
Why is Customer Retention Important for eCommerce Business Growth?
Whether it is one or thousands, getting new customers is always exciting foreCommerce businesses. Conversely, not being able to retain that customer for overtime impacts business greatly. Besides, new customer acquisition, keeping existing customers satisfied with the product or service is much more important for growth and profitability.
A successful eCommerce businessman like you should know and realize the balance between the old and new customers. Both strategies are needed to thrive in your business. If you can retain your existing customers, it adds to the credibility of your business, boosts social proof and brings more new customers automatically. The more you build credibility among your existing customers, the more your business will grow.
10+ Most Important Customer Retention KPIs for Your eCommerce Business?
In order to build long-term relationships with customers, tracking the right customer retention KPIs is a crucial aspect. Knowing these KPIs you can understand how to keep yourself engaged with your customers and satisfy them. Let us explore the top 10+ key performance indicators that help you make a customer retention plan.
Customer Retention KPI #1: Customer Retention Rate
CRR (Customer Retention Rate) refers to the percentage of users who continue to use your product after the initial purchase. With this rate, you can evaluate if your products can keep customers loyal to you for a long period of time. Here is a rule of thumb— the more your conversion rate is, the more you make a profit out of it.
customer-retention-kpi
Calculating customer retention rates is easy and simple. You have to follow this chronologically—
Subtract the number of new customers gained during the period from the total number of customers at the end of the period.
Divide that result by the total number of customers at the beginning of the period.
Multiply the final number by 100 & get your retention rate.
Tips to Improve Customer Retention Rate
Provide top-notch customer service by responding to queries as fast as it could be.
Reward (discounts, points, exclusive offers) repeat customers & encourage them to shop more.
Make sure the products meet the expectations of the purchaser.
Get engaged with customers after purchase with thank you notes and tips to take care of the products
Offer a smooth return policy to make telegram database users list customers feel confident while purchasing.
Customer Retention KPI #2: Monthly Recurring Revenue
MRR stands for Monthly Recurring Revenue— the revenue that your product generates in a particular month mainly through subscriptions. Using this KPI, as an eCommerce business owner, you can forecast, do the financial planning, and measure your product growth. customer-retention-kpi
Calculate MRR following the below steps:
Find the average revenue per active account (ARPU).
Multiply the ARPU by the total number of active users for the month.
Tips to Improve Monthly Recurring Revenue
Raise your subscription fees strategically.
Offer new, valuable features to attract and retain customers.
Encourage upgrades or additional purchases.
Enhance support and engagement to keep users.
Target new customer segments or geographic areas.
Customer Retention KPI #3: Product Stickiness
The KPI—product stickiness, refers to the measurement of DAU (Daily Active Users) to MAU (Monthly Active Users). It is the rate at which users you can also create an online store on return to your product regularly. To understand whether your products are creating value or not among users, this key metric you should apply.
customer-retention-kpi
To calculate the product stickiness, all you need to do is:
Find the daily and monthly active users.
Divide both user counts.
Follow the below tips to improve product stickiness:
Are you struggling to market your startup atb directory on a tight budget? You are not alone. Many startups face this challenge. However, the good news is thateffective performance marketingdoes not require a fortune. This blog explores 10 low-cost strategies, backed by free resources, to help you reach your target audience and drive growth.
Startup Marketing
What Is Marketing in Startups?
Startup marketing is the strategic process of promoting and growing a new business. It involves identifying the target audience, creating a strong brand identity, and utilizing various marketing channels to reach potential customers. The goal of startup marketing is to generate awareness, attract customers, and drive sales.
Key aspects of startup marketing include brand development, market research, content marketing, social media marketing, search engine optimization (SEO), email marketing, public relations, and paid advertising. Startups can build a loyal customer base and achieve sustainable growth by effectively implementing these strategies.
Challenges of Low-Cost Startup Marketing
Low-cost startup marketing can be effective, but it presents unique challenges. What it needs is commitment efforts to reach a wide audience, build brand awareness, and compete with established businesses.
Additionally, managing multiple marketing channels and tracking results can be time-consuming and complex. Moreover, relying heavily on free or low-cost strategies may lead to a slower growth rate compared to those with larger marketing budgets.
Startups can maximize their impact and achieve remarkable results by leveraging effective low-cost marketing tactics. These strategies not only save money but also allow you to focus on what matters most: building your business.
In this blog post, we will explore10 proven low-cost marketing strategiesthat can help your startup thrive. From content marketing and SEO to social media and email marketing, we will provide actionable tips and free resources to guide you along the way.
Throughout this guide, we will also highlight free valuable resources that can assist you in implementing these strategies. These tools and platforms will empower you to make the most of your marketing efforts without breaking the bank.
10 Proven Low-Cost Strategies for Startup Marketing
Startup marketing can be done with creativity and strategic planning if you can implement effective marketing strategies on a limited budget. Explore these proven low-cost techniques to maximize your impact and reach your target audience.
1. Content Marketing: Building Brand Authority
Startup Marketing
Content marketing is a powerful strategy that involves creating and distributing valuable, informative content to attract and engage your target audience. You can establish your startup as a thought leader and build trust with potential customers by consistently producing high-quality content.
One of the key benefits of content marketing is its ability todrive organic traffic to your website. When you create valuable content that addresses the needs and interests of your target audience, search engines are more likely to rank it higher in search results. This can lead to increased website visitors and potential customers.
Thought leadership is another important aspect of content marketing. You can position your startup as an authority in your field by sharing your expertise and insights through your content. This can help you build credibility and attract the attention of potential customers and partners.
Content Ideas for Content Marketing
Here are some content format ideas to consider for your startup’s growth in its content marketing:
Blog posts:Share your knowledge and insights through informative and engaging blog posts.
Infographics: Visualize complex data or concepts in a visually appealing way.
Case studies: Showcase your successes and highlight the value of your product or service provides.
Videos: Create videos to demonstrate your product or service, share tutorials, or interview experts.
Free Resources for Content Marketing
To help you create high-quality content, consider using the following free resources:
Canva:A popular online design tool, Канва makes it easy to create visually appealing graphics and infographics.
