Why DTC Retail is so focused on Customer Retention & Post-Purchase Behavior! š„
Why DTC Retail is so focused on Customer Retention & Post-Purchase Behavior! š„
Part One is all about What We Know in our two-part trend report.
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THIS WEEKāS DOPE NEW STARTUP IDEA COVERS:
* Customer Retention + Post-Purchase Behavior + Branded Customer Experiences š„
WHAT WE KNOW:
* The Market Indicators & Behavioral Consumer Trends we've identified.
Retention becomes a top priority as acquisition costs spike
-Ā thanks shopify!Ā https://twitter.com/Shopify
TheĀ pandemic-induced plungeĀ in customer acquisition costs was short-lived. Costs onĀ Facebook have reboundedĀ and are at or near pre-pandemic highs. In lateĀ 2020 paid search spiked 17%Ā and paid social advertising increased 24%.
Competitionāfueled by the move to ecommerceāisĀ accelerating digital ad growth. Industry data revealsĀ increased spend in paid search, social, and connected TV.
Though reaching new customers is important, the rising competition for online attention has reinforced the value of keeping existing customers.Ā Retention has overtaken acquisition and conversion as a top priorityĀ for many businesses.
Post-Purchase Automations You Need To Retain More Customers
-Ā thanks malomo!Ā https://twitter.com/gomalomo
Despite email marketing already making up a large portion of ecommerce sales, most brands fall short when it comes to automating a post-purchase experience that captivates customers and builds long-term loyalty. After the customer buys, their excitement is at a peak. Most brands donāt take advantage of that time with customers, or they completely ignore it.
The first sale is the beginning of a relationship with a customer, not the end.Ā Youāve spent money and time to get people to the site, and have already eaten the acquisition cost. So the post-purchase experience is where the opportunity is.Ā
The Value of Keeping the Right Customers
-Ā thanks amy!Ā https://twitter.com/amyegallo
If youāre not convinced that retaining customers is so valuable, consider research done by Frederick Reichheld of Bain & Company (the inventor of the NPS / Net Promoter Score) that shows increasing customer retention rates by 5% increases profits by 25% to 95%.
How To Use Order Tracking To Boost Ecommerce Sales
-Ā thanks yaw!Ā https://twitter.com/yawa
Your post-purchase experience is a golden goose of opportunity to drive engagement, repeat purchases, brand loyalty and much more.
Email is the most effective channel of customer retention. The issue is that most brands donāt control their most important and opened emails that they send to customers: shipment tracking emails.
Ecommerce brands can use these emails to share educational material on their product or promote their rewards programs, but hereās why theyāre so critical: The open rates are astronomical.Ā Whereas typical marketing emails see open rates of 10% to 20%, tracking notification emails see open rates between 50% to 80%.Ā
-Ā thanks jon!Ā https://twitter.com/jshieber
Yaw Aning named Malomo, the service he launched for small businesses to turn their order-tracking services into branded customer experiences, as a tribute to his mother, who was a small business owner herself.
Along with co-founder Anthony Smith, Aning built a service that connects with a single click to the Shopify platform and creates custom, branded tracking pages for each brand. āItās a landing page for a brand. They use it like they would use any marketing asset,ā Aning said. āThe strategy is to build up integrations to the other tools merchants use to create rich experiences leveraging those tools.ā
THE DOPE IDEA & THE BRAND EXECUTION:
* Taking the idea and amplifying that into tactical action.
Join us next week for the second half in our two-part report.
Weāll discuss on how to position ourselves as a new player in theĀ Customer Retention + Post-Purchase Behavior + Branded Customer ExperiencesĀ space ā and get into the development of the Brand IP, securing a legit Domain Name, then making it Internet LIVE.