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How can ecommerce businesses Reduce their churn rate

Just like fertile soil is vital to yield a good harvest, a good customer relationship is crucial to the success of any business; while different but similar in analogy, both these domains demand the realization of fundamentals that matters if they seek fruitful results. For businesses, a significant proportion of revenue comes from repeat customers; therefore, it is evident how important it is to reduce the churn rate, i.e, the number of customers that stop doing business with you. With ever-increasing competition in the ecommerce industry, many webstores find their customers swaying toward other stores. This article discusses what causes customers to churn and what measures ecommerce stores take to reduce churn rate.

Why do customers stop doing business with you?

Understanding customers’ sentiments are crucial to providing satisfactory customer service. But more importantly, what drives these sentiments must be realized, especially if they’re on the negative side of the spectrum. Otherwise, you’re at risk of losing them. Let’s see what factors cause customers to turn over.

  1. Bad experiences: One of the main reasons for customer attrition is negative experiences caused due to many factors; slow delivery, bait and switch practices, and overselling are some, to name a few, breaking the trust and confidence of the customers.

  2. Inadequate after-sales support: One place businesses can win customers’ trust is after-sales support. This step of the purchase cycle often determines whether a customer will buy again from the business. Not having a return policy and a proper support management system to answer their concerns, should they need any help, customers often feel abandoned, losing their confidence in the business.

  3. Bad pricing strategy: In an area like ecommerce, where competition is tough, how you price your products makes a significant difference. If customers, after purchasing products find out better deals are available in the market, they are less likely to repurchase from you.

How can you reduce your business churn rate?

Realizing how important it’s to retain your precious customers, a good business must take the necessary steps to ensure they always revert. Let’s see some of the ways you can retain customers.

Loyalty program

Reward the customers for every purchase they make in the form of points or discounts that can be redeemed while making future purchases. Although this strategy is common, it works well and demotivates customers from swaying toward competitors.

Personalized discounts

Humans can always tell how special it feels when treated exclusively. Offering discounts to existing customers on birthdays, sending discount vouchers to existing customers through reactivation campaigns, and providing discounts on products they have shown interest in previously. These are some ways in which you can offer personalized discounts to your established clients, encouraging them to buy again. These customers have good chances of converting since they already have experience dealing with your business.

Focus on recovering customers

A bad experience for the customer can be as disastrous for businesses as the customers. Therefore, business management must give special consideration to mitigate the adverse effects of bad customer experience. According to one study, 70% of customers are more likely to do business again with a company that responds positively to their complaints. Customers infer such business behavior as a sign of respect which transforms into customer loyalty.

Remaining updated

The world of ecommerce is moving fast as innovations are coming up more than ever. In such a market, it becomes crucial to keep your business updated in a way parallel to the latest trends in the industry. Failed to do so, and you’ll find customers moving on to your competitors.


In business, customer retention is as vital as customer acquisition. While many business owners give utmost importance to the latter former is often overlooked. The x2x team can set up a webstore for you based on modern ecommerce platforms and integrate it with popular business solutions. This integrated architecture enhances the ecommerce business capabilities with functionalities that can elevate the customer experience and offer them services resulting in an reduced churn rate.

Reach out to the x2x team for a free demo or any query that you have. The x2x team would be more than happy to help you.



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