"Emotional e-commerce" increases repeat purchases by 80%, retention by 58%

December 16, 2022

When high-growth e-commerce companies move from short-term transactional relationships to building long-term emotional relationships, they see dramatic business results.

Whether your company is located online or offline, there are two types of customer relationships: business and emotional relationships.

Transactional relationships describe customers who are more interested in price and speed of landed than in the actual shopping experience.

On the other hand, emotional relationships arise from the customer experience, leading to a deeper relationship between the brand and the customer. These emotional relationships create the depth and loyalty that form the foundation of any profitable and sustainable business.

How do you make transactional customer relationships deeper and more emotional?

1. Implement points programs to incentivize customer actions

Points programs are the most popular type of program and work by motivating and rewarding customer actions. Because you can reward customers for almost any small action (such as a product review or social engagement), rewards programs make it easy to attract customers to every part of your business.

2. Grow your customer base through referral programs

In an industry driven by fierce price competition and increased advertising noise, potential buyers are looking for a voice they can trust that provides opportunities to the best customers in the world. Recommending your store can have the same effect on their social circle as a celebrity endorsement.

With a referral program, you can increase conversions by having your existing customers share your brand with others, setting a social precedent that encourages other customers to engage and interact.

With 84% of shoppers trusting recommendations from people they know, your existing customer base will become your best and most trusted advocates.

3. Improve customer retention through VIP programs

With VIP levels, you are encouraging repeat purchases through gamification. Customers are motivated by the pursuit of higher status and increasing rewards. Your customers will even start bragging about how much they've spent.

As customers progress through your program, you have the opportunity to offer more experiential or emotional rewards, such as invitations to special events, early access to new products, and choose your own rebate days.

As you scale and expand your business, it's increasingly important to focus on loyalty, retention and a sense of community. Rewards, referrals and VIP levels help you get there.

Damon Baca


Crossborderit (CBIT)