Acquisition and the grow-at-all-costs mindset; it’s been D2C’s playbook for years. Well, while we have spent so much time analyzing and asking ourselves questions about the acquisition funnel, we haven’t given the same thought to how we keep our customers coming back.
We’re all paying attention to our Returning Customer Rate. But, as we’ve heard from many of Yotpo customers, their retention strategy starts and stops at this returning customer rate. But there’s so much more that goes into bringing customers back.
Brands should be asking:
- Who are these repeat customers?
- And what are they buying?
- What is your current customer return rate?
- What types of engagements are driving these repeat purchases?
- What are the main reasons customers are churning?
- Are you effectively using customer data to personalize their experiences with your brand?
Answering these questions is key to creating a successful retention strategy. But brands can’t quite seem to make it click. When we asked, 52% of brands are more focused on retention than they were last year, and yet, 40% of brands haven’t made any changes to improve or broaden their retention strategy.
Even further, 70% said their retention rate has remained stagnant or gotten worse over the past year.
So, we have to ask: Do you know how to keep your customers coming back? You need to engage your customers between purchases with the right experiences at the right moment, making their post-purchase path simple, seamless, and captivating.
Let’s look at three of your most common customers:
- Olivia: She’s just made her first purchase, and your goal is to bring her to her second purchase and diversify her cart.
- Jane: She is a repeat buyer and always buys the same product. Your goal is to continue having Jane buy from your brand while also motivating her to become an active subscribed customer.
- John: He is an active subscriber and has his third subscription order coming soon. Your goal is to mitigate churn and increase AOV.
Test your retention knowledge below and follow these three customers’ paths to retention to achieve the individual goals set for each shopper.
Woo! You did it. We’re so proud. If you’re ready to see how Yotpo can help you implement these retention strategies IRL, let’s chat.
