5 Proven Strategies for Improving Customer Retention on Amazon

Amazon is a massive marketplace with over 300 million active users, but it’s not easy to stand out. Growing your Amazon business takes time and effort, but there are some proven strategies you can use to attract new customers and - crucially - keep them coming back. Here are five proven strategies that will help improve your Customer Retention on Amazon.

See how increasing your customer retention rate might increase your profits with this handy retention calculator

Invest in customers’ experience

There are many ways to invest in customers’ experiences on Amazon. For example, you can provide reviews from your customers that will help other buyers make a decision about purchasing your product. You can also offer professional photography of your products and include an image of someone using it. This shows potential customers that this product is not only good but also useful for them.

You can also create detailed product descriptions to make potential customers feel like they know exactly what they are getting when they purchase your product. You can offer a trial period for your product so that people can try it before deciding whether or not to buy it.

While it is tempting to assume that all customers would prefer a lower price over better quality or additional features in their purchases, research has shown this isn't always true. If you can optimize your Amazon product listing to explain the benefits of your products and demonstrate the overall positive experience of purchasing from your brand over your competitors, you will give customers more reason than pure price to stick with you.

Find and create opportunities to build loyalty

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• Uncover hidden opportunities with your own sales data

Discover opportunities in your sales data by analyzing the behavior of your most loyal customers. Look for trends, such as which products are purchased together most often, or when customers purchase particular products again at a certain cadence. Using Amazon Seller Analytics tools which can help you understand how your customers usually purchase from you, for example, can help you market to them at the time when they’re most likely to purchase again.

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• Create opportunities to build loyalty.

If you want to retain customers and get them to keep coming back, it's important to create opportunities for them to feel the benefits of being a loyal customer. While this may sound obvious, too many businesses make the mistake of thinking they can simply rely on word-of-mouth marketing or sales promotions as their main way of promoting retention. If a business is only running one promotion per year, for example, that doesn't give customers many opportunities for loyalty building; if you're running three promotions per month (and each promotion has an expiration date), then you've got 30 opportunities per year—three times as many!

Blend your retail and social media presence

Building a strong brand on social media is hard work, but it's worth it. Social media channels can help you build your brand and grow your business by connecting with potential customers and nurturing relationships that otherwise would never have happened. You can use it to send out promotions and coupons, share customer feedback and otherwise show your customers and followers what you stand for. After all, as the saying goes, “people buy from people”.

Build trust with reviews

The importance of reviews for building trust and credibility cannot be overstated. Reviews are an essential part of the customer experience on Amazon, where people spend more than half their time reading other customers’ experiences with a product before buying it themselves.

In fact, according to a 2019 report from Feedvisor, nearly half of all shoppers who leave feedback do so within 24 hours of receiving an item—and 82% do so within two days. That’s because customers want to know what they’re getting into before making their purchase; if you can demonstrate that your product or service is trustworthy enough for people to feel comfortable doing business with you, they’ll be more likely to keep coming back after their initial interaction with you ends.

Reviews are also invaluable when it comes time for new customers (or potential ones) who aren’t familiar with your brand yet: they give them insight into how others have felt about doing business with you in the past and whether or not they would recommend working together again.

Cross-sell and up-sell wisely

Cross-selling and up-selling are two of the most effective strategies for increasing customer satisfaction, increasing revenue for your business, and retaining customers.

Cross-sells are items that complement the initial purchase (e.g., dog treats and dog toys). Up-sells are items that are more expensive than the initial purchase (e.g., a less expensive version of the same product).

In addition to maximizing revenue per transaction, cross-sells and up-sells have proven to increase overall satisfaction with Amazon as well as loyalty to specific brands or products within those brands. This is because essentially, you’ve made your customers’ lives easier by anticipating their needs. To figure out what your customers need, analyze your purchase flows to create useful product bundles for items commonly bought together.

Focusing on customer retention is a smart business move.

As a business owner, you know that customer retention is an important part of your marketing strategy. 

But have you considered how important it is to have a strong customer retention strategy? Not having one could lead to lost profits and unhappy customers. You may be able to see some of the benefits of focusing on improving customer retention right away: more sales, better brand loyalty, and increased customer lifetime value.

Customer retention is a key component of a successful e-commerce business. It’s even more important for Amazon sellers because once customers find your products on the site, they can easily purchase them from other sellers too - so you need to find more ways to stand out. We hope that these strategies will help you retain more customers and increase sales in the long run! 

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