Why Customer Loyalty and Great Reviews Are a Game-Changer for Ecommerce

If you’re an eCommerce business looking for authentic strategies to drive growth, you’ve come to the right place. This article is tailored for businesses like yours, offering valuable insights on how to thrive in a competitive market.

Planet Marketing, a Digital Marketing Agency specializing in Google Ads, Facebook Ads, and Remarketing, has years of experience in helping eCommerce businesses build customer loyalty and succeed. In this article, you’ll find tips and strategies designed to help your business achieve sustainable growth.

What Challenges Do eCommerce Businesses Face?

ECommerce businesses around the world encounter various challenges in their pursuit of growth. It’s a universal truth that every business aims to grow, but how do they achieve that growth? Growth happens by attracting new customers and, just as importantly, by retaining existing ones.

The importance of retaining old customers is often overlooked. In the rush to acquire new customers, many eCommerce business owners forget about those who have already purchased from them. This approach is flawed. It’s actually easier to sell to someone who has already bought from you than to a completely new audience.

Businesses know what they want—they seek growth and increased profit margins. They also understand the strategies required to reach these goals: attracting new customers and retaining existing ones. However, knowing what to do and actually doing it are two different things.

Where do businesses go wrong? If they know their goals and the steps needed to achieve them, success should be straightforward. Unfortunately, the reality is more complex. ECommerce businesses operate in a challenging environment. Below are some of the common obstacles they face:

Competition

In the world of eCommerce, competition isn’t just local—it’s global. The internet has truly transformed the world into a global village, allowing businesses from all corners of the globe to compete with each other. For example, someone in Bangladesh can easily compete with businesses in the United States. While competition is generally beneficial, it poses a unique challenge when businesses in countries like Bhutan can offer the same products and services at lower prices due to fewer overheads.

Cart Abandonment and Low Customer Loyalty

Shopping cart abandonment is a significant issue for eCommerce businesses and is often a sign of low customer loyalty. Imagine investing substantial time and resources to attract customers to your site, only to have them leave without making a purchase. Unfortunately, this is a common occurrence. It means that a potential buyer was on the verge of purchasing but left the site without completing the transaction. There are strategies to recover abandoned carts, and addressing this issue can significantly improve your eCommerce business.

Security

Security is a major concern for eCommerce ventures. Customers are unlikely to buy from a site they perceive as insecure, and who can blame them? With numerous cases of cybercrime and people losing their hard-earned money to hackers, ensuring your site is secure is crucial for gaining and maintaining customer trust.

SEO

Search Engine Optimization (SEO) is another challenge that many eCommerce businesses face. The difficulty often arises because many of these businesses neglect content creation, which is essential for boosting visibility. Content creation is how you get noticed by search engines, and the traffic that comes from Google and other search engines is nearly free—you might pay for content creation, but the traffic itself costs nothing.

However, SEO is not an instant solution; it takes time, which can be frustrating for beginners. Patience is required, as it can take years to be noticed by search engines like Google and Bing. The good news is that there are many online SEO tools available to help your eCommerce business improve its visibility.

Why Customer Loyalty Matters

In the eCommerce world, there’s a clear distinction between customers and loyal customers.

A regular customer might make a purchase and then forget where they bought it the very next day. When they need to make another purchase, even for the same product, they’ll often go elsewhere.

Loyal customers, however, are different. They remember your business and return for more purchases, even if your prices are higher than the competition. Your brand becomes a trusted part of their life, and they’re willing to pay a premium for the confidence they have in your products or services. Think of Apple customers, who are willing to camp out in the cold just to be the first to buy the latest iPhone.

Loyal customers also become ambassadors for your brand. In the past, they spread the word through neighbors, friends, and family via word-of-mouth. Today, they use social media to share their experiences. This makes social media a powerful tool in cultivating and spreading customer loyalty.

The beauty of loyal customers is that they essentially do your marketing for you, and they do it for free. They are one of the most powerful assets in any marketer’s toolkit. But how can eCommerce businesses cultivate this kind of loyalty?

How eCommerce Businesses Can Build Customer Loyalty

Focus on Turning Happy Customers into Loyal Customers

To build loyalty, start by earning your customers’ trust. Trust is the foundation of customer loyalty, and it’s vital for the long-term growth of your business. Attracting new customers is important, but retaining existing ones is essential for sustained success.

Run a Customer Loyalty Program

Implementing a customer loyalty program is another effective strategy. Offer rewards or coupons to customers who spend a certain amount with your business. These programs not only encourage repeat purchases but also leave a lasting positive impression on your customers.

Treat Customers Right

The old adage “the customer is king” still holds true. If your staff is rude or indifferent, customers are unlikely to return. Always prioritize a positive customer experience by treating everyone with respect and a friendly attitude.

Offer Discounts

Offering discounts is a great way to encourage repeat business. This can include free shipping or a discount on a customer’s fifth purchase. These incentives help ensure that customers remember your business when it’s time to make another purchase.

Offer Great Service

Providing exceptional service is key to building trust. Customers care most about your ability to deliver the products or services they need. By consistently meeting their expectations, you’ll encourage them to return time and again.

Market on Facebook to Create Brand Loyalty

Facebook Ads can play a significant role in building brand loyalty. Start with a free Facebook Business Page to engage with your customers and answer their questions. You can also use Facebook Ads with objectives like Brand Awareness to strengthen customer loyalty and keep your brand top of mind.

Retarget Your Customers

Retargeting, or remarketing, is a powerful way to reinforce your brand with potential customers. By using tools like Facebook Pixel, you can show ads to people who have previously visited your site or shown interest in your products. Retargeting can increase your conversion rates by up to 400%, ensuring that your business stays in front of potential customers as they browse the web.

Building customer loyalty is crucial for the success of any eCommerce business. Loyal customers not only reduce the need for extensive advertising but also are more likely to make repeat purchases.

Why reviews matter for eCommerce businesses

When considering why reviews matter for eCommerce businesses, it’s essential to understand their true impact. Online reviews go beyond platforms like Yelp and Google, although these free platforms are undoubtedly valuable. To fully harness the power of online reviews, you should explore services like Shopper Approved and Trustpilot.

These companies are authorized to syndicate data to Google, which is then used in Store and Product ratings. But why exactly are reviews so crucial for your eCommerce business?

  • Build Customer Loyalty: Reviews can significantly boost customer loyalty. Up to 88% of people trust online reviews, even when written by strangers. Leveraging this trust can be a game changer for your business. Automating the review process with companies like Shopper Approved is an excellent way to build trust and strengthen customer loyalty.
  • Influence Purchasing Decisions: About 90% of consumers check online reviews before making a purchase. This highlights the importance of maintaining a presence on as many online review platforms as possible. Ignoring reviews could mean missing out on potential growth for your business.
  • Manage Negative Reviews: Negative reviews can adversely affect your business. For instance, a one-star drop on Yelp can impact your bottom line by up to 9%. However, don’t panic—negative reviews are inevitable and can even increase trust in your business. People are more likely to trust a business with a few negative reviews than one with a perfect rating, as the latter may seem suspicious or fake.
  • Boost Click-Through Rates: Seller and Product ratings, often derived from online reviews, are syndicated to Google by companies like Shopper Approved. Businesses displaying Store Ratings in their Google Ads can see an increase in CTR by up to 17%, illustrating the power of online reviews in driving customer engagement.
  • Importance of High Ratings: While getting reviews is crucial, maintaining a high rating is equally important. About 43% of consumers say they won’t buy from a business with a rating of three stars or below. Ensure that your reviews not only reflect customer satisfaction but also contribute positively to your overall rating.
  • Enhance SEO with User-Generated Content: SEO can be challenging for eCommerce businesses that lack the time to create content. However, user-generated content, such as online reviews, can help fill this gap. Major players like Amazon and eBay rely on customer reviews as a significant part of their content strategy. These reviews serve as free content from your customers, acting as both ambassadors for your brand and contributors to your SEO efforts.

How to Get Reviews

In this final section, discover effective methods for obtaining reviews for your eCommerce business:

  • Claim Your Yelp Page: Ensure that you claim your Yelp page as this is a fundamental step. Yelp is a free platform, so there’s no reason not to claim your page. Even if you don’t claim it, customers can still leave reviews on the platform.
  • Sign Up with Review Companies: Register with review companies like Shopper Approved and Trustpilot. These are Google-approved review syndication services. By integrating their software into your site, you enable customers to leave reviews after making purchases. The reviews collected are then syndicated to Google for Seller and Product ratings. While these services charge a monthly fee, the investment is worthwhile given the potential growth for your business.
  • Utilize Facebook for Reviews: Facebook has become a major platform for online reviews. Setting up a free business page on Facebook can help increase your business’s visibility and credibility. Make the most of this platform to collect reviews and engage with customers.

Summary

Customer loyalty and positive reviews are vital for eCommerce success. Reviews build trust, which encourages repeat business and boosts growth. Positive Store Ratings can increase click-through rates (CTR) by up to 17%, while a one-star drop on Yelp can negatively impact profit margins.

Cultivating customer trust through reviews strengthens loyalty and significantly affects the bottom line.