If you could actually see the sales funnel for an e-commerce website, it would make a frustrating sight with anywhere between 60 to 80 percent of your income disappearing before it gets anywhere near your bank – in fact it might better be described as a sales sieve.

Some of the holes you can do nothing about – not everyone buys each time they visit but an area where some filler can be applied is right at the base where customers are making purchases.

Of these customers, the majority will be first time buyers who you’ll never see again, but a small number – maybe 5% will become repeat customers and it’s in this area that website owners can make a big difference to their bottom line by working that percentage.

This means rewarding customers for their initial purchase with loyalty incentives to come back and buy again, perhaps through vouchers or a points scheme. Supermarkets tend to be very good at this, offering personalised discounts, incentives and also asking for feedback on the purchase experience.

What they no doubt know, but not everyone is aware of is that once someone has purchased twice, there’s a much higher probability that they’ll go on to make a third and a fourth  purchase and become a loyal customer than there is of a first time customer making a second purchase.

It makes sense then to concentrate your loyalty plan efforts at that key tipping point.

Reflecting on my old Morris minor whilst looking at my new iphone, it occurred to me that actually they have a lot in common, despite being technologically worlds apart – they’re both really easy to use, add value to my life and as a result, I’ve grown attached to them emotionally .

Businesses can learn a lot from this. Take for an example the restaurants and bar sector. If I’m looking to book a table at a favourite or new restaurant, I want to speak to them or email or book online – not via a third party – but with them. How can a restaurant expect customers to begin to bond with their brand if they put bookings out to third parties? It really bugs me that I frequently have to sign-up with a restaurant website only to be told that I have to sign-up again with someone else just to make a reservation enquiry!

Savvy operators in the sector have realised that investing in direct online relationships with customers and making it easy for them to book and interact, will help them grow their business, even in difficult times. It’s a throwback to good old fashioned customer service, but with high tech underpinnings – a Morris minor with an iphone installed perhaps.