"25% of customers come back! 56% of repeat customers make their 2nd purchase within 3 months"
Last year, we hosted a webinar with marketing leaders from Jonathan Adler & Lilly Pulitzer where they shared their hints, tips, and insights around customer retention.
We took a look at all of the AgilOne database transactions and discovered that 25% (up from 23% last year!) of customers return and 56% of those customers buy within the first 3 months after their 1st purchase. Our goal is to help our clients because customer retention masters - and today, we want to share some of those best practices with you!
So how can you leverage this for your customer business strategy?
If you are loosing 2/3 of customers to abandoned carts, make sure you are automating campaigns like: abandoned cart, abandoned browse, first purchase incentives, signing up for email incentives, triggered welcome campaigns, and using recommendations based on browsing behavior.
Directly After First Purchase
make sure you say Thank you and set up triggered opportunities to drive a 2nd purchase - both within and outside of the 3 month window. Examples include: replenishment (like PetCareRX and UGG do), drive in-store incentive, ask them for a review, campaigns to get information such as asking for their birthday, incentives to join a loyalty program, and again - use recommendations based on their 1st purchase and browse.
Getting That Second Purchase and Beyond
After that 3 month window if they have not made a 2nd purchase - let them know you miss them! You can send them something special based on the predicted lifetime value and predicted propensity to buy.
After the 3 months or 2nd purchase - keep the relationship going! You can win at customer retention and set yourself apart from competition with anniversary notes (like Moosejaw does) or VIP specials that drive them in-store (like Peter Glenn and other top brands.)
If you haven't had a chance to enjoy our exciting and informative webinar to discuss the importance of customer retention with participation from our highly innovative retail clients Jonathan Adler and Lilly Pulitzer - now is your chance!
VP of Marketing & Press at Jonathan Adler
Marketing Manager, CRM at Lilly Pulitzer
Now that you have the steps to be a customer retention master,
make sure to browse the top headlines for this week!
Top Retail News & Insights
Every Friday we post top trending retail news for you and are now introducing a fun fact to help you benchmark your marketing efforts against peers. Get the articles here.
1. Business Insider: Millennial dads are the future of retail
According to a recent report from Mintel, young dads could be extremely profitable to retailers and companies should start marketing to them.Men stereotypically dislike shopping, but it turns out that changes when they have kids.
Young dads actually like shopping with their children. In fact, Mintel highlights how they prefer to shop for their kids over shopping for themselves...
2. Entrepreneur: Here's a Great Way to Wake up Your Stagnating Retail Brand
New business models, technological advancements, and optimized manufacturing capabilities have made it easier for manufacturers to sell direct to consumers, and retailers need to adapt and adjust if they're going to be able to stay relevant and compete. This will require a modernization of outdated business strategies, a change that will be sure to bring considerable growing pains for monolithic retailers. It's ultimately an absolute necessity for any retailer that wants to survive...
3. PerformanceIN: Subscription and Retail Marketing: the Key Differentiators
There are core differences between retail and subscription marketing strategies, and marketers must understand these nuances in order to attract and engage with their differing audiences.
Generally, retail relies on impulse or irregular buying patterns from relatively disloyal customers. As a result, every sale counts and therefore the size of each and every purchase determines whether the sale is successful. Their commercial model also tends to require high volumes of sales from day one. As a consequence, they are impatient for growth and profit.
Subscription models, however, revolve around customer lifetime value (CLV) and rely on developing and fostering long-term customer relationships. They work off the assumption that the right consumer can be upsold in the future and that their engagement with the brand will be of a regular pattern and over a longer period of time. As a consequence, a subscription model is far more likely to pay a higher cost of sale (even up to 100% of the value of a sale) in the first instance. The assumption here being that the customer will still be around for six or 12 months...
4. Mobile Marketing Magazine: The User Experience Retail Cycle
So what is the User Experience Cycle and how can retailers and customers benefit from it? First, let’s break it down into three parts; storytelling and the mobile hook; maximizing on the experience; and breathing life into the retail cycle...
The growing innovations in the online fashion retail market, the increasing online spending from consumers, and the rising influence of millennials on online fashion are some of the key factors that are estimated to fuel the growth of the market through the forecast period. In addition, the growing influence of fashion shows, customization of products, social media marketing, and visual commerce are the major opportunities for the growth of the online fashion retail market in the U.S.
On the flip side, increased online product returns, presence of counterfeit products, growing cases of fraudulence, and absence of the traditional feel of shopping are the key factors that are projected to curb the growth of the online fashion retail market in the U.S. in the next few years...