Selling to an existing customer through different channels has a success rate of 60 – 70%, says a recent report
New Delhi: The rising number of e-commerce platforms each with its attractive discounts and offers has spoilt consumers who switch loyalties in no time. Retention has become a critical factor in online commerce.
A report by customer engagement platform MoEngage found that over 62% of customers uninstall their e-commerce applications within the first week of using them.
In its report titled ‘E-commerce Retention Trends 2023,’ MoEngage gives an overview of the state of retention in e-commerce in India.
It has highlighted 3 retention-related issues online businesses face while underscoring the importance of focusing on retention strategies rather than acquisition.
High add-to-cart vs. actual purchase rates
MoEngage found that out of the new users who install an e-commerce application and add a product to their carts, only 13% complete the purchase within a week. By the third week, this number falls to 7% and the trend continues down south.
High uninstall rates
Out of the 62% of customers who uninstall shopping apps within the first week of installing them, over 35% uninstall them in the first 24 hours. A solution could be that brands look at disseminating relevant nudges through the customers’ preferred touchpoints to increase sessions from the get-go, i.e., the day of app installation.
High cart abandonment rates
Cart abandonment rates after one week of installing the apps are around 80%. This increases to 90% within the sixth week of using the app. Hyper-personalised customer experience can solve this where brands align perfectly with customer preferences.
The MoEngage report suggests that retention is better than acquisition as selling to an existing customer through different channels has a success rate of 60 – 70%. And while acquiring new customers may seem exciting, the likelihood of selling the products ranges only between 5 – 20%.
Therefore, it becomes important to focus more on the existing customer to maintain a loyal client base which comes from excellent customer engagement that rewards long-term loyalty to brands.