Customer Registration on E-Commerce Sites

Customer registration on your e-commerce site can offer some big advantages to you as a merchant.

MarketingSherpa's Ecommerce Benchmark Guide 2006 notes that most larger retail sites (79%) have some kind of customer registration and profile system, though many (39%) don't do a good job of selling customers on why they should register. The majority (54%), however, explain that registration provides faster check-out blended with some sort of a discount plan as a carrot.

This information peaked my interest in customer registration and profile systems. Some of the better small business e-commerce software programs allow for customer profiles including: Yahoo! Merchant Solutions (formerly Yahoo Store), Storefront, ShopSite Pro, Monster Commerce, Miva Merchant, osCommerce, X-Cart, and others.

Shopping cart abandonment is the enemy of sales. When you have customer registration, you can you contact those who have abandoned carts (so long as they register before they abandon). One of the slickest ways to improve your conversion rate is to send (automatic or manual) e-mails to registered customers who have recently abandoned their shopping carts. Give them a URL where they can complete their transaction, tell them you'll answer any questions on the phone, and perhaps offer a 5% off coupon if they complete the transaction within 48 hours.

The other advantages of customer accounts, of course, are loyalty and marketing. Order history and wish lists are popular with customers. Plus, you'll have an easy way to contact your best prospects -- those who have purchased from you -- via e-mail.

If you do set up a customer registration system, don't make it mandatory or you'll drive away customers. Instead, induce customers to register by offering an incentive of some kind.