Where do you start in improving customer retention?

You see customer retention is about getting more and more repeat customers for your eCommerce business.

And to do that you need to know your customer retention funnel.

What is customer retention funnel?

Customer retention funnel is the steps your customers take from the first time they buy from you until they leave you.

The funnel has 4 key steps:

  1. Active new customer
  2. Active repeat customer
  3. At-risk of going in-active
  4. In-active or dormant customers

Customer Retention Funnel

New Customers

All customers start as a new, active customer because they recently bought from you for the first time (hooray!)

Repeat Customers

Some of them will come back to buy again soon, and they become an active repeat customer.

This is where you make your money, higher profit margins and faster growth happens here.

At Risk Customers

Now whether they came back to buy again or not, after sometime of not buying from you they become at risk of going in-active.

Dormant Customers

And after some time if they still didn’t buy from you, they are now considered in-active or dormant customers.

So the goal of your customer retention strategy is to re-activate your dormant customers to come back and buy again:

Re-activating Dormant Customers

And then you want to convert new customers into repeat customers:

Converting New Customers to Repeat Customers

Now you will want to keep your customers at repeat customers, and so whenever some of them start going at risk of going in-active, you want to try and bring them back:

Converting At-Risk Customers to Repeat Customers

You can do all of that using automations that run in the background, identify the different customers at different segments in your funnel and reach out to them with the right message at the right time.

Click here to learn more about marketing automation.

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