The customer loyalty platform report includes user engagement strategies to help online retailers increase customer retention and create value from customer loyalty.
Due to low customer loyalty, in the case of e-commerce brands, high customer acquisition costs (CAC or Customer Acquisition Costs) and price awareness of shoppers influence the overall value creation from customer loyalty and profitability. Given low-threshold entry and exit barriers, customers have a myriad of options to choose from, even in niche markets.
Almitra Karnik, Head of Marketing at CleverTap, says: "Cut-throat competition in the e-commerce sector is forcing brands to offer a superior customer experience. Our study shows that e-commerce brands are losing customers faster than they can gain them. Shopping apps lose an average of 86 percent of their customers within the first four weeks of download."
"Without a focus on customer loyalty, brands would continue to try to fill a leaky bucket by recruiting more and more users who don't stay long. For these brands, this affects conversion growth just as much as it does value creation from customer loyalty," she adds.
In addition, the following facts are among the key findings of the report:
- Registration: Only 16 percent of new users complete the sign-up process within a week of app installation.
- BindingOnly 11.6 percent of new users remain active in the first week.
- Uninstall: 42 percent of new users uninstall the app in the first 30 days after installing the app.
- Re-installationOnly 5.21 percent of users reinstall the app in 30 days after uninstalling it.
CleverTap is a customer loyalty platform that helps consumer brands optimize value creation from customer loyalty.
At Benchmark Report 3.1 billion data points were analyzed from 18 million devices and from 15 million unique uses. It is designed to provide insights that will enable growth teams to test the performance of their apps against some of the most successful e-commerce apps. The report also identifies strategies that can help improve customer engagement and loyalty, provides insights on how users move from one stage of their lifecycle to the next, and offers recommendations on how to increase repeat purchase rates and thus customer retention.