Fuel Loyalty: 7 Retention Techniques For Online Growth

Understanding Fuel Loyalty: The Importance of Customer Retention

Have you ever wondered why some customers keep coming back, even with so many options online. I’ve noticed this trend in ecommerce where businesses work hard to attract new shoppers but end up losing them after the first purchase. It’s a bit like pouring water into a leaky bucket – you can keep filling it, but most of it spills out before you get anywhere. There’s nothing wrong with attracting new customers, but focusing on loyalty seems to be far more cost-effective.

Retaining customers improves sales, credibility, and can usually help brands grow faster because they become more trustworthy through word-of-mouth and customer testimonials. Loyal customers are even great for boosting confidence among other buyers. More or less. I think people tend to return to the same brands over and over again because they value familiarity, ease of use, and reliability.

This creates a relationship between brand and buyer that makes the latter feel seen and special. Personalisation has played a huge role in helping brands improve retention rates by offering tailored recommendations or deals that fit their needs. You might see this as exclusive discounts or points systems that encourage repeat purchases.

Most successful online brands do something similar. Surely there’s no magic number when it comes to retention rates - each business is different based on what they offer and what their goals are. Sort of. Even industry benchmarks can vary drastically depending on seasonality, location, and competition in the market.

Ultimately, understanding your ideal customer is crucial if you want them to return after purchasing from your website the first time. Customer data can help you figure out what they want so you can offer an attractive shopping experience that keeps them coming back again and again for more fuel loyalty.

Technique 2: Reward Programs That Drive Engagement

Why do certain brands seem so irresistible, while others fade into the background. It’s not just about what they sell. It’s also how they make their customers feel. And in most cases, it appears that people enjoy being rewarded for something or the other.

Reward programs can be found everywhere - from supermarkets to fast food joints. But there is a method to this seemingly random madness. Reward programs play a significant role in creating and keeping customer loyalty for most businesses today.

This is kind of because they acknowledge and reinforce your customers’ engagement with your brand. It’s more than just giving freebies, I think. These systems operate on the principle of reciprocity—rewarding customers for their purchases, interactions, and referrals.

This simple act creates a psychological bond that increases the likelihood of repeat purchases and positive word-of-mouth. Getting people hooked isn’t as easy as some might believe. You need to get into their heads and show them that you see them and appreciate their business.

The way I see it, personalised incentives that are redeemable for discounts or exclusive rewards is a good way to get there. You could also create a community of people who have access to special offers, events, and information. But reward programs must be meticulously designed because they are an investment in your business’ future growth. It’s important to monitor their effectiveness with data points related to retention rates, average purchase frequency, customer lifetime value, and engagement metrics like loyalty program sign-ups.

And if something is occasionally not working out, make sure you keep tinkering away until it does (or doesn’t).

Technique 4: Building a Community Around Your Brand

Do you reckon anyone even reads the caption. What about that review on Trip Advisor - did anyone see that. The way I see it, i’m not being snarky, just a little bit cheeky, but there is some truth to my teasing because the world is awash with content. Like a low-grade diarrhea that we all suffer from after drinking the Kool-Aid.

That’s why the way forward for building a loyal customer base has got to be around creating a community. A community isn’t just a bunch of people who like your clothes - it’s about creating an experience together, for them and you. I’m talking about engagement.

If this were dating, you’d see your followers as more than numbers on Instagram. They’re people who buy your clothes and will potentially tell their friends how amazing you are sort of if only they felt like they were seen and heard by your brand. Don’t get me wrong, some people couldn’t care less about interacting with anyone other than their camera roll but many are eager for connection, for true engagement.

This can mean different things to different brands. For instance, your community could exist on your Instagram grid where you actively engage with every comment or question - let’s face it, no one enjoys talking to themselves so it would be quite discouraging to never hear back from a brand we love unless we’ve bought something from them. Or it could be an IRL event that brings everyone together for a night of drinks and dancing - either way, you’ll want to create opportunities that allow members of your community to interact with one another in as meaningful ways as possible. One way to do this is through user-generated content so your customers don’t feel like brand cheerleaders (unless you’ve hired them as such).

By taking an inclusive approach where everyone gets a chance to share their stories and experiences - think Oodie - loyalty can arguably flow both ways. It doesn’t just have to be ‘what you get from interacting with us’ but also ‘what can our brand give back’. This can make all the difference between transactional one-off purchases and an active community of truly loyal customers.

More or less.