Top Retail News & Fun Fact Friday – How many VIP customers do you lose yearly?

May, 6 2016

"One High Fashion Retailer Realized They Were Loosing 30% of Their VIPs Each Year"

 

Once you have your customer data sources aligned, cleaned, and usable - there is a whole new world you discover! You begin to understand who are your VIPs, how do they interact with you, what are their channel preferences, where are they being acquired from...and most importantly...

Are you retaining your VIPs?

One of our fashion retailers discovered that they only understood 58% of their customers and 30% of their VIP customers were churning each year.

How different is that number for other retailers? And what did this retailer do to retain their VIPs?

  1. Engaging VIPs with Clienteling - like Jonathan Adler
  2. Automated, Triggered, Life-cycle Emails - Like Lilly Pulitzer 
  3. Segmentation & Clustering by product, brand, channel preference and behavior (Using these models to focus on reactivating lapsed customers!) - Like Blinds.com and Moosejaw
  4. Leveraging Mobile and VIPs only campaigns - Like DAVIDsTEA and Donald J Pliner
  5. Leveraging Geo-targeting to drive high value customers between channels & into the store for sales or events like - Like Peter Glenn

 

*Pro Tip: Click the brands links to see their real use cases and stories on how they turned VIP strategies into delightful customer buying experiences!


 

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. Multichannel Merchant: 3 Tips Every Brand Should Implement in their Marketing Efforts

We see brands and retailers increase both their revenue and the efficiency of their ad spend as new technologies upend the traditional playing field. The old playbook is proving inadequate for driving success in the digital age. We need to think about our team, particularly marketing, advertising, and merchandising, differently. To capture ROI, retailers and brands must re-imagine these roles, which become more blurred with every passing year, to find and keep their customers.


2. MacRumors: Apple VP of Online Retail Bob Kupbens Resigns From Company

 Kupbens took over from Apple VP Jennifer Bailey – now in charge of Apple Pay – and was directly responsible for all online retail initiatives, such as Apple's recently redesigned online store and its online iPhone upgrade program. Hint: We find the comments section enlightening on what consumers like & dislike when you update your online stores!

3. USA Today: Sephora is making a serious 'Play!' with subscription beauty boxes

For women and men who love products, this service is for you. At the price of around one new drug store lipstick a month ($10), it's a low entry point and ideal for those who travel frequently and need carry-on sized goodies, or want a mini makeup kit to carry around at all times. It's also great for those with a lot of events on the horizon like graduation, birthday parties or summer weddings. And, of course, for Mother's Day presents. Sephora may well give Birchbox and others a run for subscription business, though there may be enough customers for all.


4. CNBC: April retail sales confirm spring off to a slow start

L Brands, the maker of Victoria Secret, was especially disappointing—sales at the flagship Victoria Secret brand were down 1 percent, well below expectations of a gain of 4 percent. But they weren't the only disappointments...Costco, Zumiez, Buckleand Cato were all below expectations.

What happened? First there's the weather, which this time really has been disappointing—and it's been poor into May. It's been cloudy in New York for a week and a half. I just spoke to an analyst in Atlanta: it's supposed to be 75 degrees, it's 51 and cloudy.

5. Small Business Trends:The State of Retail, Here’s What You Should Know

Retailers spent $62 billion on “shoppers’ experiences” last year, competing for the attention of consumers. Some of the outlay worked — 2015 retail revenues hit $5 trillion in 2015, and that doesn’t include cars. Sales are up significantly (72 percent) since 2000.

But what really surprised me was learning that there are 3.8 million storefronts in the U.S., an increase of 190,000 in only two years. Most (90 percent) of those storefronts are individual shops (meaning they’re small businesses and not large chain operations). However, these stores only account for 25 percent of overall retail revenues...

 

Please feel free to leave comments below to share in this theme of customer retention - We want to hear from you!