5 e-commerce loyalty facts you need to know in 2024

It’s 2024, and the e-commerce landscape is more competitive than ever.

The digital algorithms keep evolving and this increases your customer acquisition costs (CAC). As CAC increases, brands need to boost customer loyalty and retention to achieve sustainable growth. 

If you want to optimize your business strategies, data and insights will make all the difference. 

And if you’re short on time, this is the blog for you. 

In this blog, we will explore factors that help build strong customer relationships, enhance shopping experiences, and drive growth. 

1. Customer loyalty and retention are directly proportional

DYK: 79% of customers say that loyalty programs make them buy again from the brand, and 84% are more likely to shop from brands that have a loyalty program in place. That also means a loyalty program can increase repeat purchases and reduce the need for expensive customer acquisition campaigns.

Loyalty programs serve as powerful tools for encouraging referrals, expanding your customer base through word-of-mouth marketing. Your customers are 70% more likely to spread the word about your brand when they’re part of a loyalty program.

Building trust and confidence among your customers is another way to increase customer loyalty, as 57% of customers spend more on brands they trust.

89% of customers considered the time brands take to respond to queries in deciding whether to buy from that brand in the future. 

Now, what does it take for a customer to become your loyal fan?

88% of consumers state it takes at least three purchases to build brand loyalty.

Improving your loyalty initiatives also helps increase customer lifetime value, This underscores the importance of investing in strategies that keep customers engaged.

Talking about engagement, let’s move to the next important aspect of customer loyalty.

2. Enhancing customer engagement boosts loyalty

Brands with dedicated mobile apps experience higher engagement and conversion rates compared to those relying solely on optimized mobile websites. The effectiveness of push notifications in driving app engagement cannot be overstated, as they provide timely and personalized touchpoints that keep users coming back.

Keeping users engaged is easily one of the most important things you can do for your business.

Because 95% of consumers choose brands that provide significant and relevant information throughout all stages of the customer journey.

A single onboarding-related push notification for your new mobile app users delivered within the first week of installing the app can increase your new customer retention rate by 71%.

Mobile apps contribute significantly to customer retention, offering a seamless and personalized shopping experience that fosters long-term loyalty.

Vajro’s mobile app platform empowers you to host live selling sessions right from the app. Live selling enables you to build trust and brand credibility, as viewers retain 95% of a video’s message compared to just 10% in the case of text.  

While the average conversion rate for a live selling event is 9%, this number can reach as high as 70% – meaning plenty of untapped potential is waiting to be discovered.

Live selling improves engagement and helps you offer personalized shopping experiences.

That takes us to the next section.

3. Personalized shopping experiences can make customers feel special and valued

Personalization has become a critical component of successful e-commerce strategies. Tailoring the shopping experience to individual preferences not only enhances customer satisfaction but also drives higher conversion rates. 

An Accenture study states that 91% of consumers are more likely to buy from brands that remember them, know what they buy, and provide relevant offers and recommendations.

Google says that 63% of customers have a stronger purchase affinity towards brands that give them relevant product recommendations.  

Personalized shopping experiences are no longer just a good-to-have capability because a study shows that 65% of customers expect companies to understand their needs and requirements at an individual level. 

The impact of personalization is far-reaching, as customers who receive personalized experiences are more likely to make repeat purchases and develop a stronger connection with the brand. 

In fact, 75% of consumers state that they’re more likely to be loyal to brands that understand them on a deeper, personal level.

Investing in personalization technologies and strategies can significantly boost overall sales and customer loyalty.

But if you still think implementing personalization strategies can wait, consider this:

Brands that fail to meet customer expectations regarding the omnichannel shopping experience stand to lose out on 10% to 30% of potential sales.

A lot of untapped potential that you sure shouldn’t miss.

By using data to understand customer behavior, you can create targeted recommendations and personalized offers that resonate with your audience. 

Talking about data…

4. First-party data is key for growth

Today’s e-commerce businesses are data-driven, so using analytics is key to refining your brand strategies. First-party data gives you insights into customer behavior and preferences, helping you create personalized shopping experiences that resonate with your audience. 

But amidst privacy laws and changing ad networks, there are challenges in acquiring customer data. However, 82% of consumers are willing to share their data in return for a personalized experience.

So how can you track this data if you don’t own it? 

It's easier than you think with a mobile app for your brand.

A mobile app serves as your marketing and sales channel while also giving you complete ownership of all data associated with it.

Vajro’s integration with Firebase app analytics gives you detailed information on customer actions on all the pages within your app, enabling you to refine your personalization strategy as you own this data.

As an added benefit, you can even track user behavior here, like:

• What collections do they view? 
• Which products do they click on?
• Did they add a bundle to the cart but delete it later?

And many other similar actions.

As the next step, you could retarget them through push notifications, email, or SMS using this behavior data. 

Let’s dive into another powerful section about what else customers are willing to do…

5. User-generated content is king

User-generated content (UGC) has emerged as a powerful tool for enhancing customer trust and engagement. 

98% of shoppers consider product reviews when they’re deciding to buy. 98%!

Encouraging customers to share their experiences and reviews can provide authentic and relatable content that resonates with potential buyers. 

And how is this beneficial for your business?

Well, customers referred by other customers convert 3X higher, stay 37% longer, and spend 200% more.

Impressive, isn’t it?

By showcasing real customer experiences, you can build a sense of community and foster stronger relationships with your audience. 

Customers trust peer recommendations more than traditional advertising. As many as 88% of people are more likely to trust a brand or product through recommendations from family or friends.

Vajro integrates with popular customer review apps in Shopify like Judge.me, Smile, Loox, and Yotpo.

Key trends in e-commerce

Customer preferences and behavior patterns change or evolve with the time of the year, sales season, economic status, and many other factors. 

On average, 3 out of 4 first-time customers seek higher-quality products and at least 84% of them compare your prices with competitors before purchasing. 

Owing to these rigorous comparisons, customer retention remains a challenge, with most industries experiencing retention rates below 20%. 

According to Shopify, a good returning customer rate should range between 20% and 40%. 

However, maintaining these rates can be difficult, as the average retention rate on day 1 of a new iOS app is 26.65%, plummeting to just 4.13% by day 30.

Cross-selling emerges as a powerful strategy in this context, driving as much as 30% of e-commerce revenues, with 60% of brands reporting increased customer lifetime value through cross-selling efforts. 

Mobile apps also play a pivotal role in customer engagement, with over 80% of customers preferring to shop via their mobile devices. 

Yet, the challenges persist, as a report from 2023 reveals an alarming 50.49% uninstall rate for Android mobile apps.

To address the uninstallation risks, focus on strategies like implementing one-click and social logins and supporting diverse payment options. 52% of global brands are investing in digital wallets today.

Easier login options come in handy when users forget login credentials. A report states that when users forget their login credentials, 92% of them abandon the process altogether rather than navigating through recovery steps.

Final thoughts

Loyalty programs that focus just on reward points belong in the past. Now and in the future, customers look for real connections from brands. They want brands to resonate with them. 

They want to be part of something bigger.

They want to know why you do what you do.

They want to understand how you give back to society, the environment, and the community.

It’s high time you build a community of loyal customers because customer acquisition costs are not going down anytime soon. And loyal customers will help you sustain in the long run as they are 9.9X more likely to spend more with your brand. Customers who can emotionally resonate with your brand are 71% more likely to recommend it to others.

Use efficient channels - like a dedicated mobile app - and robust strategies to retain customers and enhance engagement to stay on top of customer minds. Through personalized shopping experiences, you can build up customer loyalty, increase customer engagement and retention, and drive sustainable growth. 

If you are looking to build a high-converting mobile app to build a loyal customer base, try Vajro today, or book a demo now.

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