Retaining Customers Acquired During the Pandemic

There’s no question that the global COVID-19 crisis has transformed customer behavior and that many of these behaviors look to be sticking around even now the danger has mostly passed.

Perhaps it would be more accurate to describe what occurred during the pandemic as an acceleration rather than a transformation. However, whatever the words we use to describe what has occurred are, the fact is that many retailers operating in the online and omnichannel spaces are now thinking about how they are going to keep hold of the customers they gained during the period and dissuade them from returning to pre-pandemic buying habits.

We know that customers are currently enjoying the novelty of being able to return to brick-and-mortar shopping, so online brands need to make sure they are giving them the best reasons possible to stick with ecommerce.

Meeting Customers Where They Are

This is a concept which has come up repeatedly in ecommerce discussions but has found increasing relevance in the wake of the COVID-19 pandemic.

Customers are being torn between multiple ecommerce brands and the experience of high street shopping. This means you cannot rely on them returning to your brand of their own accord and the onus is on you to get in touch and remind them of your existence and the ways you can best meet their retail needs.

This can be through social media posts, emails, or even snail mail, but make sure those customers which have agreed to be contacted by you gain value from that decision with personalized content and other motivating elements such as relevant discounts.

Personalization and Relevance

This author fondly recalls their local supermarket, at which they had never bought a single animal product, sending them a set of vouchers through their loyalty program for, among other things, packs of bacon.

If that supermarket used my purchase data intelligently, they would have identified my dietary preferences and sent discounts which were actually likely to yield a result.

Data is there for us to use, so use it. If customers have entrusted you with their personal and purchase information, use it to provide them with content which has the best chance of grabbing their attention and bringing them back for return purchases.

Research has shown repeatedly that, when a customer comes to a store specifically because they have a voucher, not only will they purchase the product the discount is for, but they are significantly more likely to make additional purchases alongside it.

Value

With the price of goods and fuel skyrocketing, people are looking for ways to tighten their belts and, if your ecommerce brand sells products which are not considered essential, you may see a reduction in sales as the cost-of-living crisis deepens.

"More US consumers reported switching to different brands and retailers in 2022 than at any time since the beginning of the pandemic – and most of them say they intend to incorporate that behavior into their routines,” writes McKinsey. "With inflation at a record high, more people are looking for value; price is at the top of the list of consumers’ motivations for switching. In particular, they’ve noticed significant price hikes in two things that many people buy multiple times a week: gasoline and groceries.”

Price has replaced product availability as the main reason customers are switching brands and retailers. If ecommerce brands want to retain business out of the pandemic and into the looming recession, they are going to need to look hard at where savings can be made in their business and pass them on to the customer.

ESG

As climate change becomes ever more present in our lives and social issues fill our news feeds, customers are keener than ever to remain loyal to brands which share their own outlook. However, the values which are of most importance can change depending on certain demographics.

"In general, younger consumers prioritize authenticity and social issues such as diversity, equity, and inclusion, whereas older consumers pay more attention to health and environmental issues,” continues McKinsey.

Ecommerce retailers which are able to deliver on customer expectations when it comes to these values, while meeting the other factors laid out in this article, will be the ones most likely to retain customers in this rapidly shifting landscape.

Final Thoughts

Ecommerce brands need to remain agile if they want any chance of retaining customers in the modern business environment. With world crises moving seamlessly between pandemics, wars, environmental disasters, economic downturns, and more, retailers must be able to meet customer expectations as they evolve alongside these events.

Customer loyalty is sure to be part of the conversation at eTail West 2023, taking place in February 27 – March 02 at the JW Marriott Desert Springs, Palm Springs, CA.

Download the agenda today for more information and insights.