Marketplace: How to Build Customer Loyalty?

Are you a professional e-commerce or marketplace seller looking to improve customer loyalty? You’re right, it’s a major issue in this sector. It’s a fact: acquiring a new customer costs more than keeping an existing one. A loyal customer base is a real driver of growth and a key success factor; all the more so in a marketplace where competition is fierce and consumers have many options. Providing quality service, guaranteeing a seamless experience and offering attractive benefits make all the difference. The Rakuten loyalty program is a good example of this, with members enjoying an average shopping basket seven times higher than other shoppers! The effectiveness of a well-thought-out loyalty strategy is formidable, so stay put: we tell you everything you need to know about it!

How to build customer loyalty in the marketplace

Building customer loyalty in the marketplace is based on the same principles as in a physical store, i.e. :

• Offer the best possible customer experience;
• Reassure customers at every stage of their journey;
• Reward them to build trust and encourage repeat purchases.

A number to remember about loyalty: a 5% increase in customer retention can boost profits by 25% to 95%. It’s undeniably a powerful lever for business growth, and above all, a strategic element not to be overlooked.

Establish a relationship of trust to build customer loyalty

Step by step, here’s how you can lay the foundations for a solid, lasting relationship with your customers:

• A smooth buying experience: simplify the buying process and optimize the sales tunnel. Fewer steps = more purchases and a better user experience.
• Quality products: always offer items as described and ensure their quality. Customer satisfaction starts with the reliability of the products you sell.
• Transparent information: communicate clearly about product features, ancillary costs and delivery times. A well-informed buyer is a reassured buyer.
• Customer feedback: always monitor and respond to customer feedback. Good after-sales service and proactive interaction help turn a hesitant buyer into a regular customer.

Rewarding purchases

There are many ways to reward your customers for their purchases:

• Loyalty programs and their exclusive benefits (promo codes, reward points, private events, etc.)
• Cashback, an excellent retention tool.

For example, Rakuten offers up to 35% cashback. This is a significant advantage that encourages customers to come back and buy more often.

Listen to your customers

To stand out from your competitors and keep your customers’ attention, it’s vital to listen to them, find out their expectations and understand their buying habits. To do this, you can provide them with :

– Reactive customer service by responding quickly to questions and complaints.
– Active engagement by using surveys, webinars and newsletters to involve your audience. A customer who feels listened to and taken into consideration becomes a loyal and committed customer.

How do you measure customer loyalty?

Tracking key performance indicators (KPIs) enables you to adjust your strategy and optimize your efforts to build customer loyalty. Here are the elements to analyze:

Repurchase rate

The re-purchase rate corresponds to the percentage of customers who make a new purchase after an initial order. This indicator shows whether your buyers are satisfied and spontaneously return to your store. A high rate means that your loyalty strategy is effective, and that your customers are finding enough value to keep coming back.

–Repurchase rate formula: Number of customers who have made at least two purchases / Total number of customers x 100.

Example: If 300 out of 1,000 customers make a second purchase, your repurchase rate is 30%.

The loyalty (or retention) rate

The retention rate measures a company’s ability to keep customers over a given period. An increase in this rate indicates that your loyalty-building actions are bearing fruit.

–Loyalty rate formula: (Loyal customers / Total customers) x 100.

Example: If you have 500 repeat customers out of 2,000, your loyalty rate is 25%.

Net Promoter Score (NPS)

NPS is a key satisfaction and recommendation indicator. It enables you to assess the degree of customer loyalty and attachment to your brand. A high score indicates high customer satisfaction and a good reputation for your store. The more positive the NPS, the more likely your customers are to recommend your company.

–NPS formula: NPS = % promoters – % detractors

Take advantage of a marketplace’s loyalty programs

Joining a marketplace with an effective loyalty program is an excellent strategy for ensuring customer retention and optimizing your sales over the long term. Becoming a partner of Rakuten and its loyalty program, Club R, is an excellent opportunity for you as a seller. Here are a few figures to prove it:

• 13 million members with a loyal, committed audience who buy regularly.
• Average shopping basket 7 times higher than non-members.
• A 30% higher-than-average re-purchase rate.
• The most generous loyalty program in France, with attractive cashback, exclusive promotions and additional benefits for loyal shoppers.

Why make this choice? Because registering with a marketplace that supports loyalty enables you to achieve 3 objectives: Save time – Increase your sales – Improve your conversion rate. A partnership with Rakuten means you’ll benefit from a program that’s already optimized to maximize your profits and guarantee stable growth.

In conclusion
Building customer loyalty is not an option, it’s a necessity to ensure your success and longevity in the marketplace. There’s no mystery to building customer loyalty in the marketplace: you need to provide quality service, establish a relationship of trust and offer attractive rewards. It’s by implementing an effective strategy that you’ll be able to perpetuate your business and optimize your results. By partnering with a program like Rakuten’s Club R, you can benefit from an engaged audience that will naturally increase your re-purchase rate. This program represents a unique opportunity to maximize your revenues and win the loyalty of an increasingly demanding clientele. Take advantage of it!