In recent years, retaining customers for online businesses has become challenging due to the escalating trends of rising marketplace fees and seller commissions.
A recent study by SleekFlow revealed that marketplaces now charge service fees ranging from Rp1,000 to Rp2,000 per transaction and have raised seller commissions from 1-4% to 5-6% since Q1/2023. These newly introduced fees and commissions pose challenges for sellers, potentially altering consumer behavior and decreasing customer retention.
The Power of Customer Loyalty in Business Success
Customer loyalty stands as a cornerstone for a business’s survival and growth. As the marketplace landscape becomes more dynamic and challenging, cultivating a loyal customer base becomes a strategic necessity in the evolving landscape.
Loyal customers are like a business’s biggest supporters, shielding businesses from challenges like the recent increase in marketplace fees and commissions. A strong base of loyal customers not only helps businesses weather the storm but propels them to thrive in the competitive online marketplace.
As a leading omnichannel social commerce platform, SleekFlow studied how these trends in rising marketplace fees affect how people shop. SleekFlow’s findings provide businesses with important insights to adjust and strengthen their customer relationships despite the challenges.
Consumer Behaviour vs Rise in Fees
SleekFlow’s report, “Rise in Fees on Marketplaces: Customer Loyalty and Strategies for Businesses in 2023,” exposes growing price sensitivity among consumers. As the report indicates, free shipping and promotions programs are still primary factors in e-commerce shopping.
According to the report, 42.9% of consumers admit they would reduce marketplace purchases due to application service fees. This finding shows that consumers are now more critical in their transactions and responsive to price increases.
Therefore, businesses need to adapt by diversifying their presence across various channels, including marketplaces, WhatsApp, social media, and other social networking platforms. This approach helps diversify customers’ purchasing costs on each platform, creating stronger brand loyalty compared to focusing solely on marketplaces.
Unlocking Customer Loyalty with Optimized Omnichannel Platforms
Another effective way to cultivate customer loyalty is by optimizing omnichannel platforms. Encouraging consumers to transact on a business’ website with more affordable prices can make customers more loyal.
This holds especially true if the website is connected to instant messaging apps, enabling businesses to respond effectively to customer complaints or desires. This brings customers closer to the brand, generating optimal brand loyalty.
To support businesses in optimizing omnichannel platforms, SleekFlow offers products that enhance the consumer experience, such as conversing with consumers via WhatsApp, SMS, Facebook, Instagram, live chat on the website, and various social networking and instant messaging apps. These services simplify and optimize the sales process for businesses.
Moreover, SleekFlow goes beyond social commerce. The platform functions as an impressive CRM solution. The SleekFlow CRM is equipped with automation features to assist businesses in running marketing campaigns more effectively, staying relevant to consumers.
With products that provide solutions for business communication and streamline the sales process for its clients, SleekFlow has achieved fantastic performance. Throughout 2022, SleekFlow recorded a six-fold increase in users, with approximately 5,000 users sending around 32 million WhatsApp messages using its services.
In conclusion, prioritizing customer loyalty is fundamental for thriving in the evolving online marketplace. SleekFlow‘s insights affirm its pivotal role as a shield against rising marketplace challenges. As businesses adapt, SleekFlow offers a suite of CRM products and solutions, ensuring remarkable success in retaining customer loyalty.
