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How to turn first-time buyers into long-term customers
Turning one-time buyers into loyal customers is key to long-term success in e-commerce. Discover how to boost retention, lower marketing costs and increase your customer’s lifetime value.
After peak sales periods when you’ve done the hard work to drive traffic and sales to your e-commerce store, you’ll want to make the most of your new customer base. Research consistently shows that repeat customers spend more and have higher conversion rates compared to new customer acquisitions. Not to mention that acquiring a new customer can cost five to seven times more than retaining an existing one.
What’s more, the longer you can keep a customer after their initial purchase, the higher their customer lifetime value. Increasing your customer retention rate by just 5% can improve your profits anywhere from 25% to 95%.
But with consumers, particularly Millennials and Gen Z, more likely to switch brands, how do you turn one-time buyers into loyal customers?
Build trust
More than ever, trust in a brand is what drives a customer to complete a purchase. While this skews more positively towards younger generations, 68% of respondents across all ages have stated that it’s more important now than in the past. And once they trust a brand, they’re more likely to become advocates or buy new products, even if these products aren’t as cheap as other options.
However, trust is a multi-faceted concept that goes beyond the quality of the goods you provide. There’s no question that if you have a high-quality product and a good warranty policy, you’ll develop a reputation for dependability. But customers today evaluate brands on their broader impact, including social and environmental responsibility, ethical practices and alignment with personal values.
It’s no longer enough for a brand to be competent or reliable; lifelong customers are those who appreciate a business’s integrity. A brand that champions sustainability, treats employees fairly and takes a stand on meaningful issues can build trust that extends far beyond the quality of its products or services.
Here are some ways to build trust.
Be transparent
People – not just customers – value honesty. Share the story behind your business, including how your products are made, where you materials come from, the ethical practices you follow and your values. If you invest in sustainability, you could publish reports or highlight certifications to back your claims.
Address any mistakes openly if they occur and show how you’re taking steps to improve. Patagonia, a socially conscious clothing brand, used the discovery of slavery in its supply chain to improve its practices and further cement its reputation for environmental and social consciousness.
Consumers are also increasingly concerned with data security, so being clear on how customer data is used and protected can help ease these fears.
Use social proof
Social proof helps customers feel more confident in their purchasing decision. Nine out of 10 consumers factor in reviews when making a purchase. It’s a powerful way to build credibility with your audience, since it’s independent validation of your company’s claims. Highlight genuine reviews from happy customers, testimonials and case studies that showcase real experiences with your brand.
Engage in open dialogue
Building trust involves creating opportunities for two-way communication. Show that you value your customers’ opinions by asking for feedback through surveys, social media or direct conversations – and act on their suggestions where possible. Then, communicate how their input has influenced your decisions. Almost two-thirds of consumers believe they can impact a brand to change, so when you show you’re listening and responding, you’re deepening their connection to your brand.
Be consistent
Consistency is key to earning and maintaining trust. Your values, messaging, and actions should align across every aspect of your business—whether it’s marketing, customer service, or day-to-day operations. A brand that acts with integrity and follows through on its promises builds credibility over time. Customers are more likely to trust a business that reliably stands by its commitments. So, if you advertise next-day delivery, make sure your logistics team can fulfil this every time. Other aspects, like tone and visuals, should also be standardised across all your channels so the branding is cohesive.
Collaborate with trusted and values-aligned partners
Your partnerships reflect on your brand and working with trusted and values-aligned organisations can strengthen your credibility. Whether it’s suppliers, influencers, co-branding initiatives or causes you donate to, choose partners whose ethics and practices mirror your own. Highlighting these collaborations not only reinforces your brand’s integrity but also expands your reach through association with respected names. When customers see you working with others who share your vision, it further validates your commitment to the principles you stand for.
Make them feel valued
Building customer loyalty starts with changing their perception of you, from a business focused solely on transactions, to one that genuinely appreciates their patronage. People are far more likely to stick with a brand that rewards their loyalty, and recommend your brand to others. Here are some effective ways to build lasting relationships.
Offer exceptional customer service
Ninety five percent of consumers say that customer service is key to their brand loyalty, with 86% abandoning a brand after two negative customer experiences. Beyond simply resolving issues, exceptional service comes from the speed of response, and how knowledgeable, approachable and empathetic your team is. While a bad experience can drive your customers to competitors, a positive experience can turn them into advocates.
Reward them with a loyalty program
Having a rewards program makes 60% of shoppers more likely to purchase from a brand. They’re a simple yet effective way to show that you value customer loyalty.
Who doesn’t have a loyalty card tucked away, where every tenth coffee is free, or where every dollar earns you credit? Rewards, such as discounts, freebies, or exclusive perks like free shipping, can encourage purchases, while tiered programs that unlock better benefits over time can further encourage loyalty.
Offer a birthday gift or exclusive discounts
A birthday gift or anniversary discount code for being part of your community shows that you’re invested in your customer’s experience. Research has found that birthday emails and personalised email campaigns are up to three times more likely to be opened than regular emails. While holiday season promotions may work to get one-time buyers into your store, it’s ongoing incentives that keep the customer retention rate high.
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Understand customer preferences
With 73% of customers wanting better personalisation in their customer journey, and almost two-thirds expecting companies to adapt to their preferences, it’s clear that a personalised approach can enhance customer satisfaction and foster loyalty.
It makes commercial sense too, because personalisation reduces marketing costs and lifts sales revenue. When you know how your customers like to shop, communicate and engage with your brand, you can tailor their experience in ways that feel relevant. 44% of customers said they would purchase from a retailer again if they offered a personalised shopping experience.
Some areas to personalise include:
Email marketing: Tailor email frequency and content based on customer preferences, by asking them what they want to receive; some like to receive promotional emails, while others will mark as spam straight away
Customer service: Offer multiple contact options like live chat, phone and email, or if your audience is active on social media, via social channels
Product recommendations: Use purchase history and browsing behaviour to suggest products customers are likely to want
Website experience: Make it easy for customers to find what they’re looking for. If most of your buyers shop on mobile, make the design a mobile-first experience
Cart abandonment: Send reminders for abandoned items with incentives like free shipping or discounts to encourage checkout. Cart abandonment emails have a 41% open rate, almost double a regular marketing email
Delivery options: Over 80% of online shoppers want free shipping, while a quarter want it on the same day. If offering both at the same time isn’t possible, give your customers the choice. They may also prefer the option to click and collect, or pick up from a location near them
Make it easy to repurchase
When customers find it effortless to buy from you again and again, it removes barriers to repeat business. Convenience is a key factor in customer retention – if the process is too complicated or time-consuming, they’ll likely give up. Conversely, if they can make their purchase in a couple of clicks, the friction virtually disappears.
Here are some ways to make repurchasing simple.
Optimise your website
According to a recent report, more than half of consumers will choose a merchant who offers a shopping experience with less friction. And with our increasingly short attention spans, we now expect a website to load in less than three seconds before abandoning the page. Other things, like displaying out-of-stock items or inaccurate filters can increase frustration and make it more likely for an unhappy customer to bounce. Simple website hygiene factors include:
Page load speed: Use tools like Google PageSpeed Insights or GTMetrix to audit your page. Compress images and enable browser caching to speed things up
Search functionality: A search bar helps customers quickly locate products. Make sure it supports filters like price or category and accounts for variations in search terms
Mobile responsiveness: If many of your customers are shopping on their phones, the mobile experience needs to be optimised for smaller screens
Navigation: Organise your menu logically, with categories that align with how customers browse. Breadcrumbs can help them navigate back to previous pages easily
Personalised elements: Implement dynamic features like “Recently Viewed”, “Popular Products” or “Top Picks for You” to make it easier for customers to pick up where they left off or discover new items
Simplify checkout
The average cart abandonment rate hovers around 70%, causing headaches for e-commerce merchants. While around half of these are simply because the buyer isn’t ready to purchase, the remaining half cite extra costs (48%), account creation (26%) and the checkout process (22%) as some of the reasons for abandoning their carts. Some ways to boost conversion rates include:
Saving payment and shipping details: Allow customers to save their payment information and delivery address for future purchases so they can skip multiple steps
Offering different payment methods: Ensure your checkout has a variety of payment options, such as card, wallets, PayPal or Buy Now Pay Later (BNPL) services, and is localised for the region you’re selling in (for example, Alipay in Asia)
Accepting multiple currencies: If you have a global site, or sell internationally, the ability to pay in local currencies removes a major barrier for customers. A recent Shopify survey found that 49% of respondents in the US and UK would abandon purchases not in their local currency. The World Account makes it easy to do business like a local. Receive payments from 100+ marketplaces and payment gateways in over 20 currencies, and hold or manage funds with no ongoing account fees
Displaying costs upfront: Make the customer aware of all costs – including shipping, taxes and fees – upfront
Enabling quick reorders: Some products are naturally suited for repeat purchases, such as food and beverages, cosmetics or pet food. For these everyday essentials, provide an option to reorder past purchases with just a click, or even offer a subscription service
Keep them engaged
Engaging your customers keeps your brand top of mind and builds affinity.
Create relevant content
Find out what interests your customers and use your content to provide value, while keeping it on-brand. A health and wellness company might provide educational information like wellness tips or self-care routines; a food and beverage business could share recipes or pairing suggestions.
The format of the content is also important – short videos might work best for social media, while in-depth blogs or downloadable guides are ideal for more detailed information. Is your audience likely to watch short reels on Instagram, engage with interactive polls on Facebook, or read longer articles on your blog? These insights will help shape your content strategy.
Use a multi-channel approach
The average person uses six to seven different social networks a month, and almost three quarters of internet users will look on social media for brand research. It makes sense, then, to show up where your customers are looking. A Harvard Business Review study found that omni-channel shoppers spent more, completed more checkouts and were more likely to recommend the brand to their network.
Take control of customer retention
Turning one-time buyers into loyal customers comes down to value, convenience and trust. When you create a streamlined shopping experience, personalise interactions and provide valuable content, you encourage customers to keep coming back.
For businesses with international customers, making it simple to pay in their preferred currency is key. The World Account helps you collect, hold, and manage payments in over 20 currencies, cutting costs and reducing barriers for global customers.
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