How to Improve Customer Retention on Amazon

Brand loyalty is decreasing every day. Thanks to the World Wide Web, customers can access products from businesses around the world. With more choices than ever before and even more information to help them make those choices, it’s easy to see why customer retention needs to be top-of-mind for e-commerce businesses.

 You’ve probably heard the stats around customer retention. It’s anywhere from five to 25 times more expensive to acquire a new customer compared to retaining an existing customer. If your goal is to improve your customer retention on Amazon in 2019, here are some ways you can make it happen:

Control your distribution

You want your customers to have a positive experience with both your brand and your products every time, right? 76% of customers will defect on a brand after one negative experience. And 72% will actively advise family and friends to avoid that company after they have a bad experience with them. While you can actively control the experience your customers have when they purchase your products through your company, this can be difficult when you have multiple distributors. That’s why it’s crucial to control who is allowed to sell your products. This means creating a list of approved sellers who have committed to maintaining solid customer service and consistent pricing.

Use Amazon’s tools

One way to control your customer experience (and improve retention) is by registering your brand with Amazon. This allows you to control who can sell your product on Amazon since any businesses hoping to sell your products will have to have authorization from your company. Once your business has registered with Amazon, the company’s support team will help protect your brand. You can identify any sellers who haven’t been authorized to sell your products, ensuring that sellers are limited to the distributors you know and trust.

Improve consistency

It’s important that both your employees and your select distributors know exactly how you’d like your customers to be treated. Create guidelines for your customer experience, beginning with how your products should be marketed online. Ensure that your customers will always receive products both on time and in great condition.

Encourage loyalty

One of the best ways to improve customer retention is to make it easy and worthwhile for customers to be loyal to your product. The Amazon Subscribe and Save program is a great way to do this. This program allows customers to put shopping for essential items on autopilot. It’s particularly good for products like diapers, toilet paper, and food products. There’s even a ‘Family’ subcategory, making it easy for families to receive basic items like baby food without needing to reorder them.

Customers that choose Subscribe & Save will receive free shipping. They’ll also get a 5% discount on their first four subscriptions, and a 15% discount for five subscriptions or more if their subscriptions from the health, baby care, grocery, or beauty categories. All other product categories are capped at a 10% discount. This is a win/win. Your customers receive a discount for their loyalty, and peace of mind knowing that they won’t need to physically reorder your product. And your business benefits from increased customer retention, Want to learn more about improving your customer retention on Amazon? We can help. Get in touch today.