Customer Retention Strategies for Ecommerce: 10 That Work

Retention is cheaper than replacing customers: Harvard Business Review notes that, depending on the study, acquiring a new customer costs five to 25 times more than keeping an existing one. But the strategies below only pay off if you know your starting point.

Measure two numbers before you change anything: your repeat purchase rate (customers with two or more orders) and the time between first and second order. Shopify's Returning customers and Customer cohort analysis reports give you both, and the retention rate calculator turns them into a rate you can track each quarter.

Most customers who never come back are lost between the first and second order. These three strategies work on that gap:

• Post-purchase emails. A short sequence after delivery: how to use the product, what to buy with it, and a reason to return timed to your typical reorder gap. Send it from Klaviyo or Shopify Email, not as a single "thanks for your order".
• Product education. Care guides, routines or recipes help customers get value from what they bought, which is what makes them buy again. Put them in the order confirmation, the first email and the customer account.
• Easy reordering. Reorder links in emails and the customer account, or a subscription option for products customers run out of. Every login, search or form you remove makes the second order more likely.

• Loyalty program. Points per order and a first reward reachable by the second or third purchase. Keep the rule simple enough to say in one sentence; see the ecommerce loyalty program guide.
• VIP tiers. Better perks as customers spend more, so your best customers have something to keep. See the tiered loyalty program guide.
• Referral program. Reward customers when a friend buys. It brings new customers who already trust the brand and gives existing ones another reason to stay involved; see the Shopify referral program guide.

• Segmented messages. Send offers by purchase cycle and value: a replenishment reminder for a 30-day product, early access for top customers, a different message for one-time buyers. Segments based on Shopify order data are enough to start.
• Phone wallet card. A loyalty card in Apple Wallet or Google Wallet shows the points balance on the customer's phone without an app, updates after each order and can show a notification on the lock screen when a reward is ready. See how to create a wallet loyalty card on Shopify.

• Win-back flows. When a customer passes their usual reorder time with no order, send a reminder, then an offer, then a last message. Use their unused points balance as the reason if you run a loyalty program.
• Support as retention. A fast refund, an easy exchange or a proactive message about a delayed order keeps customers who would otherwise leave. Tag customers with a support issue and check whether they order again.

Do not launch all ten. Pick three based on your repeat pattern:

If customers buy consumables every few weeks (coffee, supplements, pet food), start with easy reordering, replenishment messages and a points program.

If customers buy a few times a year (fashion, beauty, gifts), start with post-purchase emails, a loyalty program with a reachable first reward and win-back flows.

If you also sell in store, make sure the same program works at the till, so in-store customers are identified and earn too; see the omnichannel loyalty program guide.

Check monthly and compare like with like:

• Repeat purchase rate. Overall, and for customers who received each strategy against those who did not.
• Time to second order. If it gets shorter, your post-purchase and reminder work is landing.
• Customer lifetime value, estimated with the Shopify CLV calculator.

Give each change at least one full purchase cycle before you judge it, and change one thing at a time so you know what moved the number.

JeriCommerce covers the loyalty side of these strategies on Shopify: points, VIP tiers, referrals and rewards as Shopify discount codes, with each member's card in Apple Wallet or Google Wallet. The card updates after every order and sends automatic notifications when the balance changes, a tier changes or a reward unlocks, and loyalty events sync to Klaviyo for your emails and win-back flows.

Its analytics compare customers with and without the card, from installs to repeat rate, so you can see whether the program is moving retention. There is a free plan to start.