Loyal customers buy up to 90% more often and spend 67% more. It is important to remember that without high levels of customer retention, it is difficult to be successful in cross-border e-commerce. How do you achieve this?
Customer acquisition in cross-border commerce
Acquiring customers abroad can sometimes be more difficult than in your home market due to differences in consumer habits and needs. Here are the key steps to attracting shoppers:
- Analysis of the local market – The ideal solution is to conduct your own market research. If your budget does not allow for this, use existing sources such as reports on foreign markets published on www.trade.gov.pl. Research carried out by local institutions can also provide valuable information.
- Optimisation of the shop’s website – In many markets, customers are much more likely to trust websites that have a local domain name. Other ‘must haves’ include content in the local language, as well as local currency and payment methods.
- SEO – It is virtually impossible to promote a shop in a given market without SEO activity. Alternative solutions could include working with influencers, using recommendations or affiliate marketing strategies.
- Competitive advantage – Cross-border e-commerce is almost only viable if the shop stands out from its competitors, either in terms of affordability or the superiority of certain products over local goods. This makes consumers more willing to accept inconveniences, such as longer delivery times.
Retaining customers in a new market
Another challenge for the retailer is to retain the customers that have already been acquired – they are the group that guarantees a steady profit. Retention rate is the difference between the number of customers at the end of a given period and the number of customers acquired, divided by the number of customers at the beginning of the period, for example a year. It is expressed as a percentage and the average retention rate in retail is 63%. What you can do to improve your retention rate:
- Customer service in the local language – this enhances the experience and also improves customer loyalty.
- Loyalty programmes and promotions – these are universal mechanisms that can be used effectively in any market.
- Gathering and using customer feedback – this helps to build a positive experience and can be useful in marketing and sales strategies.
- Efficient logistics – long delivery times can deter customers from making repeat purchases. Therefore, it makes sense to ensure safe and timely delivery with the services offered by the Apaczka platform – an experienced partner in shipping processes.
- Ongoing communication with customers – through all possible channels, using personalised offers but also content marketing.
Cross-border commerce is a great solution for retailers looking to expand into new markets, but it can only be successful if the retailer invests in attracting consumers and building loyalty.