Post on 22-Jan-2018
The E-commerce Revenue Formula
Acquired customers
Average order size
Retention rate
REVENUE (in eCommerce)
According to Harvard Business Review article, “increasing customer retention by 5% can potentially increase profits by 25-95%.”
Zero Defections: “Quality Comes to Services” in the September–October 1990 issue.
Source: Windsor Circle, Retention Trends Webinarhttps://vimeo.com/183736035
Retail Retention Rates
Retention MarketingWhat is retention-focused marketing?
That’s marketing strategy with the simple focus to create more engaged customers who return to your store repeatedly.
Understanding the different customer segments (personas)
in your client base is the key to retention
Customer segments you should be monitoring
Repeat customers
New customers
Spending habits
Buying habits
Plan your remarketing strategy
Dog Lovers Cat Lovers
Ads containing Dog content only!
Ads containing Cat content only!
Always consider timing when you are setting up your next promotion!
You can’t ask people buy more food for their pet, if they already have enough!
How to utilize email marketing to improve retention
Post-purchaseemails
Setting up “trip-wire” email
promos
Do the up-sales based on data
1 2 3
Post-purchase email seriesPositive experience is the key to customer loyalty
or in our language - Better Retention
35 DAYS AFTER the order. The estimated time to expect the next order.
No random products here. Use data to discover relevant products
Trip-wire email campaignRelying on data while setting up your email promotion
results in Better Retention
What are trip-wire emails?Emails with relevant offers set to trigger when it is very
likely that a customer of yours is going to churn
How to find out when people churn
Calculate your Average Time-Between Orders!
Free Resource: AVG time-between orders calculator
Set-up an email drip campaign that triggers at the right time!
• Email 1- try to avoid discounts, simply offer relevant products
• Email 2 (a day later) - Offer better incentive (small discount)
• Email 3 (3-5 days post trigger) - Offer great incentive (bigger discount)
• The Emails had 117% higher conversion rate than standard promotions!
• The Remarketing campaigns had 53% higher CR than their average
• Overall: We managed to bump up retention rate of New customers with 25%
Use customer behavior
to adjust product promotions
Build extremely precise targeting for your emails &
remarketing
Once again, the key is…