New research from Forrester Research says that Australian online retailers risk losing customers by failing to invest in customer loyalty and retention. As reported on B&T Marketing, the research in Australia 2010: Marketing, Merchandising, And Customer Service, revealed a majority of local online retailers are focusing all their attention on acquiring new customers and making sales, but are not putting into place effective measures to retain them past the first purchase.
"Steven Noble, senior analyst at Forrester Research, said very few companies have the metrics to understand how a retention strategy should fit into the marketing mix.
"'Companies need to be focusing more on the end of the customer journey,' he said.
"'It is quite natural that many online retailers would focus initially at the start and the middle of the journey, given many Australian online retailers are still in a stage of massive growth and focusing on acquiring customers and building new business. Though in the future as they mature, and as they collect more data about the lifetime value of their customers they will need to focus on the retention end of the customer journey, which includes things like measuring the customer experience, seeking feedback from your existing customers and considering loyalty programs.'"