Every Shopify founder knows the thrill of hearing that “cha-ching.” However, if sales only spike when you run discounts, that isn’t sustainable growth, it’s a signal your retention strategy is broken. In Smile’s latest YouTube video, an 8-figure ecommerce founder shared how heavy discounting nearly destroyed their business, wiping out 70% of revenue overnight. But when they shifted focus to long-term retention instead of quick sales, everything changed.
Discounts attract bargain hunters. Retention attracts loyal customers.Here’s how they rebuilt their business using five strategies that increase retention without sacrificing your margins.
1. Use Limited Editions to Build Emotional Connection
If you want to increase customer retention, create moments your customers can’t forget. Limited-edition launches that tap into real FOMO, the psychological driver that keeps people coming back for the next drop.
For example, when Supreme releases a new collab, fans camp out. When your brand releases a true limited edition, not fake scarcity, you build anticipation and loyalty at the same time. Customers who feel part of your journey aren’t just buyers; they’re participants. That emotional tie makes them far more likely to purchase again and again.
2. Add Value Instead of Cutting Prices
Retention thrives when customers feel they’re getting more value, not necessarily just a cheaper price. Instead of offering 20% off, try adding 20% more value. The founder in our video swapped deep discounts for small value adds: free guides, exclusive bundles, and helpful extras that cost almost nothing but felt special. Bundles can be another value driver and are especially powerful for retention, customers discover new products they might not have bought otherwise, increasing satisfaction and repeat purchase rates.
Pro tip: Retention is easier when your customers feel they’re leveling up with every order.
3. Turn Transactions Into Relationships With a Loyalty Program
The #1 driver of retention in ecommerce? A great loyalty program. Instead of rewarding customers for waiting on sales, reward them for coming back. With Smile, shoppers can earn points every time they buy, turning purchases into progress. Just like Starbucks’ stars, those points gamify the experience and build habit-forming behavior. Customers feel smart, valued, and eager to earn their next reward.
Loyalty programs increase retention because they create emotional switching costs: once customers start earning rewards, they don’t want to start over elsewhere.
4. Use Storytelling to Build Retention Through Meaning
Discounts win transactions, stories drive retention. When the founder in our video opened up about their struggles, showed behind-the-scenes footage, and included handwritten thank you notes, something amazing happened: repeat orders went up. Customers want to support brands that feel human. Sharing your journey, values, and creative process gives them something to believe in, a story they want to stay part of.
Those small storytelling touches turn casual shoppers into loyal fans and every fan into a retention asset.
5. Launch a Referral Program That Rewards Advocacy
When your customers love your brand, retention and acquisition start to blend. A referral program is the bridge between the two. When you combine referrals with loyalty (both built in Smile), you create what we call the retention flywheel, customers earn rewards for buying and sharing, keeping the cycle spinning.
That’s how top Shopify brands grow sustainably, through relationships, not discounts.
The Future of Retention: Experience Over Discounts
If you want to know how to increase retention, start by asking: Would my customers still buy if I stopped discounting tomorrow? The brands that win long-term aren’t the cheapest they’re the most memorable. Focus on value, storytelling, and rewarding loyalty, and your customers will stay longer, spend more, and tell their friends why.
Ready to build your retention engine? Start your free trial of Smile, the loyalty and referral platform trusted by 100,000+ Shopify brands. Launch in minutes, and keep growing.
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FAQ: How to Increase Retention in Ecommerce
Q1. What’s the best way to increase retention without discounts?
Try to focus on creating value through loyalty programs, bundles, storytelling, and limited editions. These strategies increase repeat purchases and strengthen emotional connection.
Q2. How do loyalty programs increase retention?
They reward customers for repeat engagement, creating habit and incentive.
Q3. Does retention really impact profitability?
Yes, improving retention by just 5% can increase profits. Keeping customers is always cheaper than acquiring new ones.
Q4. Should I still run occasional sales?
Yes, but make them rare, meaningful, and aligned with your brand story. The key is to lead with loyalty, not discounts.