Effective strategies to recover abandoned carts helps build customer loyalty, revenue and growth not only during the critical holiday shopping season but builds the basis for building long-term customer relationships that will benefit the brand throughout the year and into the future.
Key takeaways:
Adopting best practices for communicating with new and current customers ensures they will do business with you throughout the year, not just during the holiday shopping season.
The five best practices for converting new customers into loyal customers.
Five essential tips for enhancing current customer loyalty include using historical data, giving your existing customers VIP treatment, increasing conversions, being emotional, and being attentive.
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5 best practices to convert new customers into loyal customers
Below are the five best practices for turning new customers into loyal ones for years to come.
1) Collect data
The first time a potential customer engages with you is an ideal opportunity to collect essential information. Along with basic contact details, you can simplify the process by using features like automatic completion (e.g., city populates from zip code, state dropdown lists, etc.). Additionally, offer value in exchange for other information, such as a birthdate (e.g., a discount on their first purchase or enrollment in a loyalty program). You can also ask for product preferences in order to follow up when the time is right. However, realize the shopper is in a hurry, so make information requests simple and quick to complete. If it’s too cumbersome or time-consuming, the shopper will opt out.
In addition to offering incentives for the shopper to provide contact, birthday and other information, provide other motivations for the shopper to purchase again after the holidays. Some examples include brochures, coupon codes, early access to future sales, and rebates.
3) Include branding
Offer branded merchandise for no additional cost. Anything customers wear or use where others can see it provides you with free advertising. Especially with the power of influencers, TikTok and social media in general, the power of a constant visual reminder of your brand shouldn’t be underestimated for its power to drive further customer engagement.
4) Exceed customer expectations
Customers are easily disappointed. By exceeding expectations, you delight customers and create a positive perception of your brand. An excellent shopping experience is a great driver of loyalty. If you have a guaranteed delivery date, attempt to beat it. Consider how you can delight and surprise your customers in ways that will remain memorable and shareable with friends and relatives through social media or word of mouth. Finally, make returns seamless and simple. According to past Optimove research, customers who make returns stand at 26%, compared to a 13% rate for those who do not return products.
5) Engender loyalty
Loyalty programs are an excellent way to nurture new customers. According to the Paytronix Loyalty Trend Report 2024, loyalty program members are often an etailer’s most valuable customers because they frequently outspend other shoppers. Allowing customers to earn points now – especially bonus points for new memberships – will give them a good reason to come back in what is typically a slow first quarter of the calendar year. Present your loyalty scheme prominently and make it easy to join and participate. If the onboarding process is too complicated, the program’s benefits are difficult to understand, or if redeeming rewards is too difficult, the customer won’t join or will quickly opt out.
5 tips for enhancing current customer loyalty
In addition to the five best practices for turning new customers into loyal customers, these five essential tips will help you improve your relationships with current customers, resulting in improved revenues, profits, and customer lifetime value (CLV):
Use historical data: The data that you already have about your existing customers provides invaluable insight into their product, channel, and purchasing habits. This data enables you to personalize the shopping experience with sharply targeted promotions and offers that help make holiday shopping easy rather than a mad scramble for your customers.
Give your existing customers VIP treatment: Leading up to the holidays, ensure that your existing customers receive alerts on your holiday plans. If you’re planning to offer free shipping, gift wrapping, or free returns, make sure your customers know and are ready to act.
Increase conversions: Create a pre-holiday sale for your loyal customers and make sure that they know it is available only to them. Early limited access to your holiday merchandise is a great bonus for loyal customers, and it is sure to attract attention.
The Guide to Re-Engaging Lapsed Customers
Identify at-risk and lapsed customers and bring them back with this guide.
Be emotional: Emotions drive loyalty, especially around the holidays when emotions run high. Highlight seniority and loyalty in your communications – a “thank you for being a great customer this year (or for x years) along with a holiday bonus will help ensure another year of great business.
Be attentive: Make it easier to get support by putting all of your support options on one easily accessible page. Make sure that your technology and human staff can handle an influx of questions and complaints. Provide your support team with the tools to turn complaints into opportunities.
In Summary
The key to a successful holiday season is looking at your customers through the Customer Lifetime Value lens and using marketing strategies to drive long-term e-commerce success and customer retention.
So look beyond the quick wins you may be able to gain this holiday season and focus instead on a long-term strategy of customer loyalty and retention. If you regard the upcoming season not as an easy chance for quick wins but as a season for sowing the seeds of your future loyal customers, you’ll be sure to win both during the holiday craze and in the year to follow.
Rony Vexelman is Optimove’s VP of Marketing. Rony leads Optimove’s marketing strategy across regions and industries. Previously, Rony was Optimove's Director of Product Marketing leading product releases, customer marketing efforts and analyst relations. Rony holds a BA in Business Administration and Sociology from Tel Aviv University and an MBA from UCLA Anderson School of Management.
