14 Customer Retention Strategies for Ecommerce (2026)

Customer retention is the ability to bring back first-time customers to make repeat purchases.

Considering that customer acquisition costs continue to climb—reaching as high as $175 in the luxury industry—retaining customers is more important than ever to support a thriving business. At the same time, shoppers are less loyal by nature: 88% have bought from a new-to-them brand in the past three months, per Attentive’s 2026 study, while 77% regularly shop with five brands or fewer.

In a Shopify Masters interview, Neil Hoyne, chief strategist for data and measurement at Google, says to focus more on the customers most likely to stick around and spend more.

“You need to be mindful about what’s leading you to slightly better people, and put a little bit more emphasis there and a little less emphasis on those people we know aren’t going to come back,” he says.

This guide covers how to develop an ecommerce customer retention strategy, including the metrics that can tell you whether or not it’s working.

What is customer retention?

Customer retention is the practice of increasing a business’s repeat customer rate, and gaining additional value from existing customers. The goals of customer retention strategies are to ensure that customers make repeat purchases, are satisfied with a company’s products or services, and do not turn to competitors.

Customer retention differs from loyalty, where the goal is for shoppers to form an emotional connection and become brand advocates. That said, two can overlap—and you might even use a customer loyalty program as a way to retain customers. 

Why is customer retention important?

Customer retention drives higher revenues, powers word-of-mouth marketing, and is more cost-effective than relying solely on new shopper acquisition. 

Higher average order value

A high customer retention rate means your customers trust your products and your company. This trust translates to more revenue: Known customers spend up to three times more per order.* 

Word-of-mouth marketing

Qualtrics’ 2026 consumer experience research found satisfied customers are 4.1 times more likely to recommend a company, 3.8 times more likely to trust it, and 2.3 times more likely to purchase more.

This word-of-mouth marketing is invaluable, especially if you can incentivize repeat customers to spread the word. Conversations with family and friends are the primary research channel for 38% of shoppers.

Cost efficiency

Acquisition brings in new customers, while retention helps you earn more value from those you’ve already paid to reach. 

As such, Gorgias estimates that increasing your repeat purchase rate could increase revenue by up to 6%. These repeat customers generate up to 300% more revenue than first-time customers. 

For example, in the graph below, each store has 100 customers buying a $10 item each month. The theoretical light purple store is retaining 5% of those customers each month, and the dark purple store is retaining 10%. As you can see, the 5% increase can lead to rapid growth that is difficult to match with straight acquisition.

Customer retention metrics and formulas

Use customer retention rate and other key metrics to diagnose why customers return or leave. Here are the most important customer retention metrics and why they matter:

Customer retention rate formula

Customer retention rate is the percentage of customers you keep during a specific period. The formula is:

Customer retention rate = (Customers at end – New customers acquired) / Customers at start x 100

For example, if you started July with 1,000 customers, acquired 300 throughout the month, and ended with 1,250—then your customer retention rate would be 95%.

Repeat customer rate

Repeat customer rate measures the percentage of customers willing to make a second purchase from you. 

Calculating your repeat customer rate requires only two pieces of information:

• Number of repeat-purchase customers. The amount of customers who have made more than one purchase in a specific period of time.
• Number of unique customers. The number of different customers who purchased from your store in the same time frame, including those who have only purchased once.

To calculate repeat purchase rate:

Repeat customer rate = (Customers that purchased more than once / Unique customers) x 100

Purchase frequency

Purchase frequency shows how often customers are coming back to buy from your store. 

Using the same time frame you chose for your repeat purchase rate (e.g., a single month), divide your store’s total number of orders by the number of unique customers.

To calculate purchase frequency:

Purchase frequency = Orders placed / Unique customers

Average order value

Average order value (AOV) shows the amount of money a customer spends in your store on each transaction.

Use the same time frame you set for your repeat purchase rate. From there, divide your revenue by the number of orders your store processed. Shopify reports can also calculate this number for you. 

To calculate AOV:

AOV = Total revenue earned / # orders placed

Customer lifetime value

Customer lifetime value (CLV) is the dollar amount each customer will spend during their time with your business. It helps you understand how much each customer relationship is actually worth.

To calculate CLV:

CLV = (AOV) x (Number of repeat transactions) x (Average retention time)

Churn rate

Customer churn rate is the percentage of customers who’ve stopped being your customers during any given time period. 

To calculate your churn rate:

Customer churn rate = (Lost customers / Total customers at the start of the period) x 100

Customer retention benchmarks

Customer retention benchmarks vary by industry, product type, purchase frequency, and business model. Compare performance against businesses that have similar customers and buying patterns, along with your own historical trends inside your analytics platform.

These benchmarks can help you identify opportunities for improving customer loyalty and repeat purchases. For example, Recurly’s 2026 State of Subscriptions report found 52% of customers have canceled at least one subscription in the past year due to lack of use. 

If your subscription cancellation rate is higher than this average, consider “pause before cancel” options. The same Recurly report found three of four subscribers who pause their subscription eventually return. 

Tracking these metrics requires reliable customer data. Shopify Analytics, for example, unifies data everywhere you sell. Sidekick, the AI assistant built into Shopify, uses this data to answer questions, retrieve insights, and offer personalized advice. The clothing brand SNOCKS relies on these metrics to cut report-building time by up to 98%,

14 customer retention strategies for ecommerce

• Use customer accounts
• Improve your customer service
• Start a customer loyalty program
• Send customer life cycle emails
• Use customer segmentation and personalization
• Offer a discount or store credit
• Collect customer feedback
• Perfect the returns process
• Offer a subscription service
• Turn customer complaints into resolutions
• Reward referrals
• Offer buy now, pay later options
• Add rewards milestones
• Educate your existing customers

From loyalty programs to personalization, here are 14 customer retention strategies to try for your ecommerce business: 

1. Use customer accounts

Customer accounts let customers sign in with a quick login when visiting your online store. Shoppers can use their personal accounts to track orders, initiate returns, manage subscriptions, and buy again.

Customer profiles also collect data you can use for future personalization. If someone adds a product to their wish list, for example, you can regularly email that shopper with an incentive to buy. This strategy proved particularly useful for retail marketing brand Bluecore, who found they drive the most conversions.

However, customer accounts can be a double-edged sword. Some 19% of carts are abandoned because the site required the customer to create an account.

Consider extending customers the option to create an account after they’ve placed their first order. After the purchase, send a well-timed, personalized email that highlights the perks of having an account—such as faster checkout, order tracking, and exclusive offers. 

2. Improve your customer service

If customers have to reach out for help, the level of service they get influences whether they’ll return. Zendesk’s 2026 CX Trends report found that 85% of CX leaders say customers will drop brands over unresolved issues, even on the first contact.

Consider adding unexpected extras to the customer service experience, like a small gift or a handwritten thank you note. 

“Those personal touchpoints make you feel seen,” says Lauren Ludwig, co-founder of Their Jewelry, in a Shopify Masters interview. “They make you feel heard.”

With Shopify Inbox, you can offer a live chat on your website and use AI to write instant Answers. Customers get an immediate response to FAQs like “Where is my order?” and “What’s your returns policy?” However, questions that need help from a human rep will be routed to your Shopify admin to handle. 

French apparel brand From Future also uses Shopify to power omnichannel returns and exchanges, allowing customers to return online purchases in-store. The apparel brand reports a 10% increase in sales as a direct result of these omnichannel features, in part because in-store returns create opportunities for exchanges and additional purchases. 

3. Start a customer loyalty program

Customer loyalty programs motivate customers to purchase more often to earn rewards. This becomes a profitable exchange for both you and your customers; they get more value each time they shop, and you benefit from their repeat business.

LoyaltyLion’s 2026 study found 70% of customers are more likely to shop with brands that have a loyalty program. Deloitte’s 2025 Consumer Loyalty Program survey also shows 72% of US loyalty program members say loyalty programs make them more likely to spend with their preferred brand. Some 56% say they even increase spending because of the program.

Creating a loyalty program can be as simple as rewarding customers on their second purchase or when they reach a certain spending threshold. That might be:

• Points that convert into store credit
• Gift cards or vouchers
• Free shipping

Shopify Analytics lets you find loyal customers by dollar value and total number of orders. You can also ask Sidekick to help with a prompt like: “Create a segment of customers who’ve placed more than one order and draft a Shopify Messaging email that invites them to my loyalty program.”

4. Send customer life cycle emails

Email marketing gives you a direct line of communication with customers. Some 71% of them stick around for sales and promotions, per Attentive’s 2026 study—but it’s not the only reason why email subscribers remain on a brand’s email list:

• 41% stay for product launch announcements
• 29% stay for seasonal tips or ideas
• 26% stay for reminders on items they’ve saved
• 25% stay for product recommendations
• 23% stay for restock reminders on items they use regularly

Build your email marketing strategy around these types of content that subscribers value. For example, a week after a customer’s first purchase, you could recommend products that would complement their initial purchase.

Shopify Messaging has prebuilt email templates so you’re not working from scratch. Use Sidekick to customize post-purchase thank you emails, replenishment reminders, product education, and winback messages. Then, use Shopify Flow to automatically send them to the right customer segments.

5. Use customer segmentation and personalization

Customer segments are groups of people who share similar traits. Use what you know about them to personalize retention-related outreach. Some 93% of shoppers are more likely to keep shopping with a brand that personalizes, per Attentive’s 2026 report.

Shopify Sidekick can build these segments for you. Define the qualities you want to personalize—for example, customers who bought a particular skincare product—and target that segment with a Shopify Messaging campaign. You could send product recommendations for other skincare items, replenishment reminders, or win-back offers.

Airsign took this approach after the launch of their smart vacuum cleaner. They segmented customers who bought the cleaner but not the AirBags or HEPA filters, then emailed them three months later when they came in stock. 

“We identified the segment in Shopify, created a discount for that specific segment, communicated with them in a way that was very personalized for their needs, and we saw about 30% of those people convert,” says Cofounder Alex Dashefsky.

6. Offer a discount or store credit

If you have the margins to support it, consider discounts that drive customers back to your store. It can lower the barrier to purchase; Attentive’s 2026 study found exclusive VIP-only discounts are the top type of offer that makes customers continue shopping with a brand.

You can also experiment with offering store credit versus a percentage discount. For example, a $10 credit toward any future purchase may feel more tangible and flexible to customers than 10% off. 

Once customers have earned store credit, create customer segments based on when that credit expires. Then, use Shopify Messaging to send emails that encourage them to spend it.

7. Collect customer feedback

Don’t assume that every customer who doesn’t plan on returning will leave feedback with their reasoning. Qualtrics’ 2026 study found only 3 in 10 respondents explain why they leave, while 30% do not tell anyone and switch brands silently.

Customer segmentation tools let you filter people who haven’t placed a purchase in more than three months. Put these people into a feedback loop:

• Mine customer surveys, reviews, support tickets, return reasons, and post-purchase email replies to find out why customers haven’t returned. 
• Assess and group the reasons why customers hesitate or leave.
• Prioritize one fix.
• Tell customers what changed and invite them back. 

Imagine 60% of your one-time customers say they didn’t purchase again because they haven’t used the last item they bought. You could enter these people into an email marketing series that focuses on product education. Walk them through the use cases of the product they purchased, the benefits of it, and testimonials from other customers.

“We’re constantly interviewing our customers and I’m actually on video calls with them, asking them what they like about Fluff, and what they like about other brands, or what brands they are watching or following closely, just to gauge what Fluff’s true customer is interested in and their expectations of a brand from content,” says Erika Geraerts, founder of Fluff in a Shopify Masters interview.

“Often as a founder, you have an idea in your head and it’s really good to either validate that or challenge that assumption by turning to your customers.”

8. Perfect the returns process

Returns are an expensive problem. The National Retail Federation (NRF) projected total returns would reach $849.9 billion in 2025 and estimated that 19.3% of online sales would be returned. 

Start by creating a clear policy that outlines what qualifies for a return and what doesn’t. Since 81% of people check a retailer’s return policy before placing an order, clarifying these details upfront helps manage customer expectations and prevent misunderstandings.

Some returns are inevitable; refine the process for customers who do wind up shipping their items back. In a survey of 600 shoppers, 22% said an easy return or exchange process is one reason they’d shop with a new brand again. 

One way to simplify the process is with Shopify, which allows customers to submit their own returns within their customer account. It lets them generate a return label, track the status of their return, and request a refund or exchange on your website. 

Returns apps like Loop Returns or AfterShip can also be helpful, as they let you build an online portal where customers can generate shipping labels, track their returns, and request exchanges—all without draining your customer support resources. 

9. Offer a subscription service

Subscriptions lock customers into purchasing items regularly, providing your business with steady, recurring revenue. This works for repeat use items, or products that need regular replenishment. 

Ryan Close, founder and CEO at Bartesian, says this kind of built-in customer retention element is crucial. As he put it in a Shopify Masters interview: “I would never launch a business again that doesn’t have some sort of stickiness element to the customer, because otherwise it’s so hard and expensive to go and acquire that customer to go back and have to do it again and again and again.”

You don’t need to make subscriptions your entire business model to reap the benefits of customer retention. You could use Shopify Subscriptions to offer a standalone curation box featuring miniature versions of your bestselling products. Jesse’s Tea Club does this with their subscription box, which allows customers to sample a variety of teas every season.

10. Turn customer complaints into resolutions

The service recovery paradox suggests that effectively resolving a mistake can build more goodwill with customers than if the issue had never occurred in the first place.

Graza’s founder Andrew Benin took this approach when demand for their new olive oil overwhelmed their distribution system. Their customer service team began receiving complaints that the bottles’ labels were flaking or arriving dented, while some customers were waiting up to three weeks to get their delivery.

Andrew fixed the problem with a mass apology email sent to roughly 70,000 of their customers. “This is simply an acknowledgement that we are not perfect, and we are aware that we may have disappointed some folks over the past 60 days, and into the gifting season,” Andrew wrote.

“I can assure you that our team is hard at work improving,” he added. “I want to apologize for not being excellent in terms of your customer experience.”

11. Reward referrals

Customers who recommend your business vouch for your quality and reliability. This trust factor is invaluable: Salsify’s 2026 Consumer Research report found 46% of people discover new products from family and friends. It surpasses brand websites (24%), video ads (19%), and online forums (12%).

Local produce delivery service Odd Bunch tested this approach with their referral marketing program.

“The hypothesis was that if someone feels they’ve now become a champion for the brand or have convinced someone to do something that they themselves started doing, there would be that extra stickiness,” says founder Divy Ojha in a Shopify Masters interview.

Their hypothesis proved true. “Their retention at six months was an order of magnitude higher,” Divy says.

12. Offer buy now, pay later options

Buy now, pay later (BNPL) options allow customers to purchase items and pay for them over time, often with low fees or no interest. It also opens up your products to a broader audience, including those who may not have the immediate funds available.

Baby Mori, for example, offers Shop Pay Installments that let customers split larger purchases into smaller installments. They recorded an 8.5% increase in conversions from Shop Pay users. Those shoppers also spent 13% more. 

13. Add rewards milestones

Attentive found 81% of customers think it’s motivating to track their progress toward rewards for a brand. These rewards might include a discount off your purchase, free product, or other perks linked to certain milestones, such as:

• The anniversary of their first purchase 
• Their birthday
• Passing a certain spend threshold
• Making a certain number of referrals 

Rewards are especially helpful if you also run a brick-and-mortar store. LoyaltyLion’s 2026 study shows 60% of customers are more likely to visit stores when they have points and rewards to redeem. 

14. Educate your existing customers

Product education helps customers get more use from what they bought, which offers them a clearer reason to reorder, refill, upgrade, or try a related product. 

There are a number of ways to leverage this approach. For example, Aliyah Marandiz—founder of skincare brand Sugardoh—creates TikTok content to help inform customers and build community around her brand. “The best education is education that people don’t know they’re actually learning from,” Aliyah says in a Shopify Masters interview.

You could also use webinars or live Q&A sessions to engage with your customers and address their questions in real time. Laura Thompson, cofounder of Three Ships, hosts livestreams to talk about new products. “We’ll usually have maybe a thousand people join in during that one hour, and we’ll do $35,000 to $40,000 in sales,” Laura says in a Shopify Masters episode. “It’s a great channel for community building.”

Customer retention tools and software for ecommerce brands

A retention toolstack gives you the features you’ll need to power these strategies. They include loyalty apps, subscription management software, help desk tools, live chat, and email marketing platforms. 

Shopify has native tools you can use for customer retention without the need for third-party integrations. The platform natively unifies ecommerce and point-of-sale (POS) on the same platform. Brands using Shopify POS see up to 61% more repeat purchases from known customers.*

Options to consider include:

Customer retention examples

Here are some examples of businesses that focus on customer retention, along with the techniques they use to drive repeat customers:

Elph Ceramics

Elph Ceramics has both an online store and brick-and-mortar locations. They found managing customer data across various sales channels was confusing, so they enlisted the help of Shopify POS to deliver seamless customer experiences, regardless of their shopping channel.

Elph Ceramics can now unify their customer data—including emails and purchase history—in one back end, making it easier to send retention emails that convince customers to buy again. This resulted in a 30% higher customer retention rate.

Jaxon Lane

Skincare retailer Jaxon Lane goes above and beyond to offer a positive customer experience, with the hopes it will encourage repeat business.

“We’re competing with Amazon, right?” says Jen Yu, cofounder. “We have free shipping we’ll do for our customers that have ordered many times. We throw in surprise gifts for them. We write them handwritten notes. We do everything we can do to help our customers be successful in their skincare journey and just enjoy shopping with us.” 

Jaxon Lane also launched a loyalty program where customers can earn points each time they shop and refer a friend. These points convert into rewards they can redeem on their next purchase. 

Mokobara

Luggage brand Mokobara runs their direct-to-consumer (DTC) website through Shopify. Their loyalty program is similar to a paid membership: customers get a six-month validity period for exclusive perks like 5% off during sales events. 

This is combined with Checkout Extensibility to show discounts and offers at checkout, and Shopify Flow to identify loyal customers and trigger a differentiated experience for them. 

The results speak for themselves: Mokobara’s loyalty program is driving three times more sales per customer. Their customer retention rate has grown by 30% year over year. 

The Honest Kitchen

The Honest Kitchen already had a customer loyalty and subscription program to improve retention, but it had no way for existing customers to redeem points on subscription orders.

Plus, because its target market considers its products an investment in their pet’s health, The Honest Kitchen needs to educate customers continuously—even if they’ve already made a purchase.

The Honest Kitchen uses Yotpo to deliver personalized educational content based on the pet they have, its weight, and any allergies it needs to consider in the food they buy. The retailer also automatically populates a rewards page based on each customers’ previous purchases.

After implementing this personalized approach, opt-in rates for The Honest Kitchen’s referral program rose to four times the industry average. 

“I’ve definitely seen customers who are inclined to explore new products, because there’s less of a risk if they’re using reward points,” says Leanne Pratt, The Honest Kitchen’s digital marketing and ecommerce manager, in a Yotbpo case study.

Francis Henri

Francis Henri sells curated collections of baby clothes. Founder Katherine Oyer baked retention into their marketing plan from the start. 

“The customer experience is so important for me,” Katherine says in a Shopify Masters interview. “I will not cut corners on handwritten thank you cards in every package, or specialty tissue paper and stickers.”

Katherine also took steps to make her retail stores more accessible, like choosing a space with a parking lot and back entrance and offering buy online, pickup in-store options. “If there is a mom who has a sleeping baby, we’ll get messages that say, ‘Can you just run my bag out?’” Katherine says.

When to focus on customer retention

The strategies you should prioritize for customer retention can vary significantly depending on the type of products you sell. For instance, a retailer selling high-end leather furniture will approach retention differently than a store selling tea and coffee. 

Always tailor your strategy based on what you sell and your customers’ behavior. Analyze this through website analytics, customer feedback surveys, returns forms, and support tickets. Data will uncover why customers leave, helping form your priority list for customer retention strategies.

*Shopify POS Data Claims & Proof Points, Q4 2024