How E-commerce Leverage Omnichannel Messaging for Customer Retention

The Beginning

Market studies show that growing customer retention by just 5% can boost profits from 25% to 95%. The benefits extend far beyond the increased frequency of purchases; loyal customers are proven to spend 67% more than new customers, impacting the bottom line. Therefore, for e-commerce leaders, investing in customer loyalty is a strategic imperative for growth. This brings us to the evolution of customer engagement: from multichannel to omnichannel e-commerce strategies. Multichannel approaches, while utilizing various platforms often operate in silos. Omnichannel messaging, however, represents a significant leap forward, emphasizing the integration of these platforms to create a better customer experience.

Imagine a customer starting a conversation on social media, continuing it via email, and then completing a purchase on your website- all while maintaining context and personalized service. This integrated approach addresses the modern customer’s multi-platform journey. 

The results are tempting: businesses adopting omnichannel marketing for e-commerce experience a 90% increase in customer retention. This improvement underscores the critical role of omnichannel in today’s e-commerce landscape. In this blog, we will show you how omnichannel messaging can transform customer retention, making it easier to keep your audience engaged and coming back for more. 

Omnichannel Marketing for E-commerce – How it Has Evolved 

According to the Salesforce report, 67% of customers use multiple channels for a single transaction. 40% of the surveyed customers do not like to even purchase from a business if they are not allowed to use all their preferred channels. 

Seamless omnichannel messaging keeps customers happy. 

It means a customer can start a conversation with you on Facebook, then switch to email, and you would still know exactly what they were talking about. It is all one continuous conversation.

Let us explain with a case study:

The key takeaway is that each message should be tailored to the customer’s current stage in the journey, working towards converting them to the next level. Omnichannel marketing for e-commerce allows you to track customer interactions across all channels and deliver consistent, personalized messages at each touchpoint.

Three pillars of effective omnichannel retention

Three key elements make your omnichannel messaging truly effective for customer retention:

• Personalization: This is about using data to tailor messages and offers to individual customers. Suppose, a customer frequently buys organic products from your store. You could send them personalized emails highlighting new organic arrivals or offering discounts on their favorite organic brands.
• Convenience: This means enabling customers to communicate and shop through their preferred channels. Some customers might prefer email, while others might prefer social media or SMS. By offering multiple communication channels, you make it easier for customers to interact with your brand.
• Timeliness: This is about reaching customers with the right message at the right moment. If a customer adds an item to their cart but doesn’t complete the purchase, sending a reminder email a few hours later is much more effective than sending one a few days later.

How Different Channels Contribute to Customer Retention

Seamlessly connecting your website, social media, email, SMS, and in-app messaging creates a unified customer experience, crucial for fostering loyalty. But true customer retention excellence demands more. 

Integrating Conversational AI chatbots elevates your strategy. These intelligent tools provide instant support, personalized interactions, and proactive engagement, transforming simple customer service into a powerful retention engine. 

Let’s look at the platforms playing a unique role in omnichannel messaging:

• Email: This is your workhorse for nurturing relationships. You can send personalized newsletters, promotional offers, product updates, and post-purchase follow-ups. For example, a customer buys a camera from your store. A few weeks later, you could send them an email with tips on taking better photos or links to compatible accessories.

• Social media: This is where you build community and engage in real-time conversations. You can run contests, answer customer questions, share user-generated content, and announce new product launches. If a customer mentions your brand on Twitter, you can respond with a personalized message or offer.
• SMS: This is your go-to for quick, time-sensitive updates. You can send appointment reminders, shipping notifications, or flash sale alerts. If a customer abandons their cart, a quick SMS with a discount code might be just the nudge they need to complete the purchase.

• In-app messaging: Platforms like WhatsApp and Messenger are useful for engaging customers while they are actively using your app. Every day, more than 175 million people send a message to a WhatsApp Business account and each month 40 million of them take a look at WhatsApp product catalog. With such popularity, these platforms are very helpful in meeting their customers conveniently and hitting them up with a message, ‘Our sales are live, want to check them out?’

Strategies to Leverage Omnichannel Messaging for Customer Retention

Traditionally, marketers might map customer interactions across various marketing channels. However, for an omnichannel e-commerce strategy, we can simplify this by focusing on key stages that align with the conversion funnel:

To win customers of all segments, you need to:

• Strong first purchase experience: Customer retention starts with a smooth first impression. Offer a variety of payment options, clear details, and live chat support to guide users through checkout. Follow up with a thank you message across multiple channels to welcome them. Here, everyone is your target segment- from early-stage customers or location-based to demographic segments.
• Onboard your customers effectively: New customers may not be familiar with your brand or products. Provide a well-designed onboarding program with automated messages and updates on WhatsApp, Messenger, and SMS. Offer self-service guides, FAQs, and access to customer support. Here the targetted segments are early-stage customer segments.

• Leverage omnichannel communication: Seamless conversational workflow across multiple channels enriches customer experience and builds trust. Use integrated platforms for consistent brand messaging and personalized communication based on customer data. Here all kinds of customer stages are your targetted segments.
• Personalize the journey: Go beyond generic marketing. Leverage customer data to tailor communication and recommendations. Create one-on-one personalized experiences throughout the customer journey and segment customers for better targeting. All segments, especially middle and late stages are your targetted audience here.
• Win back cancellations: Do not give up on canceling customers. Investigate reasons for cancellation and offer incentives to reverse the decision. Use messaging automation for payment reminders and account updates to prevent involuntary churn. Target especially the middle and late stages.
• Gather customer feedback: The key to understanding customer engagement and pain points is the way to reduce churn. Actively collect feedback through surveys after purchases, returns, and general brand experience. Offer automated feedback collection options via messages and live chat. 
• Nurture your loyal customers: Neglecting your loyal customers can cost your brand more than anything. Engage them with one-off campaigns, exclusive offers, and appreciation messages. This keeps them feeling valued and strengthens their connection to your brand. Loyal customers are sometimes found in the late stages, here, target them.
• Implement subscription or membership models: Subscriptions or memberships encourage long-term customer relationships. This can be particularly effective for recurring needs or product categories.
• Analyze RFM metrics: The RFM strategy is to find out the Recency, Frequency, and Monetary Value of your products. Analyze customer behavior using RFM metrics to identify valuable and at-risk customers. Segment customers based on purchase history and personalize retention efforts based on their RFM score. Segment your targetted audience from the middle stage, and build demographic, and purchasing power segments.
• Leverage conversational marketing: Move beyond static ads and embrace two-way conversational messaging. Use chatbots for personalized conversations, create interactive ad formats, and send real-time messages based on customer actions.
• Continuously add value: Customers seek brands that understand their needs and preferences. Offer personalized recommendations, relevant cross-sell and upsell options, and conduct surveys to understand how to improve their experience. This personalization is often targeted at the middle and late-stage customer segments.

Implement a customer loyalty program: Loyalty programs incentivize repeat purchases and boost customer engagement. Offer exclusive benefits, reward points, and special offers to keep customers coming back for more. This is ideal for early-stage customer segments.

What does an omnichannel messaging API do?

After the why and how of omnichannel e-commerce strategies for customer retention, there remains a genuine question: what is the underlying technology that makes this seamless, integrated experience possible? 

For this, you need a central hub that connects all your communication channels. This is the role of the omnichannel messaging API.

In your business, you have a team of delivery drivers (your communication channels: email, SMS, social media, etc.). Without a dispatcher (the API), they would be running around haphazardly, with no coordination. The dispatcher receives orders, assigns them to the right driver, and tracks their progress.

That is precisely what an omnichannel messaging API does. You need a platform like Gupshup to centralize your CRM and business so conversational marketing works like a charm. Here’s a breakdown:

• Streamlined messaging hub: It provides a single platform to send and receive messages across multiple channels. Instead of managing separate systems for email, SMS, and social media, you have one unified system.
• Contextual communication: The API keeps track of customer interactions across all channels. So, if a customer starts a conversation on Facebook and then switches to email, your team has the full context of the conversation. This prevents customers from having to repeat themselves, which is a major source of frustration.
• Automated workflows: The API allows you to automate key processes like sending welcome messages, order confirmations, shipping updates, and abandoned cart reminders. This saves time and ensures consistent communication.
• Data and analytics: The omnichannel API collects data on customer interactions, providing valuable insights into customer behavior and preferences. This data can be used to personalize messaging and optimize your retention strategies.

Final Words

Customer retention is the backbone of e-commerce success, and an effective omnichannel e-commerce strategy can make all the difference. Investing in omnichannel marketing for e-commerce has become a necessity to stay competitive. 

The numbers speak for themselves: businesses that embrace omnichannel strategies see a 23% jump in customer satisfaction and retain nearly 90% of their customers. The right tools can simplify this transformation, making communication seamless and consistent.

Now, if you think about how to actually implement this- let us present to you Gupshup as a solution. We are a comprehensive conversational messaging platform designed to power your omnichannel communication strategy. 

Consider the impact of engaging customers with interactive conversations, using rich media like images, videos, and even location sharing through rich conversational messaging, auto-intelligent routing, and auto template transition. Gupshup also focuses on the technical aspects that are crucial for a seamless experience: low latency, superior quality of service, and robust reliability with redundant systems. 

Don’t just message; converse. Don’t just connect; engage. Don’t just retain customers; build loyal advocates. Start Gupshup-ing today!

FAQ’s

1. How often should I update my omnichannel e-commerce strategy?

Regularly review and adapt your strategy based on customer feedback, market trends, and data analysis.

2. Is omnichannel communication relevant for B2B e-commerce?

Absolutely. B2B customers also expect seamless and personalized experiences across multiple touchpoints.

3. Is omnichannel just for large businesses?

No, businesses of all sizes can benefit by implementing a targeted omnichannel strategy.

4. Does omnichannel require a large budget?

No, scalable solutions exist. Start small, focusing on key channels and gradually expanding as needed.

5. How do I measure omnichannel success?

Track metrics like customer lifetime value, repeat purchase rate, and customer satisfaction scores across all channels.