Why DTC Retail is so focused on Customer Retention & Post-Purchase Behavior! 🔥

Part One is all about What We Know in our two-part trend report.

WELCOME to $5.vc, your source of differentiated startup intel!
* We break down the new market indicators & behavioral consumer trends we're tracking, then figure out the unlock to growth & revenue.
** Follow us on Twitter for upcoming open DMs / Q&A sessions. 👍

ICYMI in the last 10 weeks we covered: NFT-based Artwork + Fractional Investing + Secondary MarketplacesHosted Live-Streaming ContentMonetizing Legendary Startup StoriesHyperlocal NewsChaptered MoviesPodcast Discovery TikTok-styleNETFLIX going FULL AudioSuper Local On-Demand DeliveryBuy Now Pay Together, and GHOST Retailers.

Get Dope Startup Ideas!


THIS WEEK’S DOPE NEW STARTUP IDEA COVERS:
* Customer Retention + Post-Purchase Behavior + Branded Customer Experiences 🔥

WHAT WE KNOW:
* The Market Indicators & Behavioral Consumer Trends we've identified.

Retention becomes a top priority as acquisition costs spike

thanks shopify! https://twitter.com/Shopify

The pandemic-induced plunge in customer acquisition costs was short-lived. Costs on Facebook have rebounded and are at or near pre-pandemic highs. In late 2020 paid search spiked 17% and paid social advertising increased 24%.

Competition—fueled by the move to ecommerce—is accelerating digital ad growth. Industry data reveals 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. Retention has overtaken acquisition and conversion as a top priority for many businesses.

Post-Purchase Automations You Need To Retain More Customers

thanks malomo! 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 don’t 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. You’ve 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. 

The Value of Keeping the Right Customers

thanks amy! https://twitter.com/amyegallo

If you’re 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

thanks yaw! 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 don’t 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 here’s why they’re so critical: The open rates are astronomical. Whereas typical marketing emails see open rates of 10% to 20%, tracking notification emails see open rates between 50% to 80%. 

Indianapolis-based Malomo raises $2.8 million to turn order tracking into a branded customer experience

thanks jon! 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. “It’s a landing page for a brand. They use it like they would use any marketing asset,” Aning said. “The strategy is to build up integrations to the other tools merchants use to create rich experiences leveraging those tools.”


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.

We’ll discuss on how to position ourselves as a new player in the Customer Retention + Post-Purchase Behavior + Branded Customer Experiences space — and get into the development of the Brand IP, securing a legit Domain Name, then making it Internet LIVE.


COMMUNITY:
* Like what you’re reading? Help us build out our community. 🧱🦺🏗️🧱🧱
** And follow us on Twitter! 👍

Copyright © 2021 $5.vc - All Rights Reserved
What is $5.vc?
$5.vc is a concierge advisory service of product, marketing, and branding strategists specialized in naming & brand development, product market fit, GTM strategy, growth & retention modeling, and new market segmentation.
Interested in working together?
We work with a limited number of clients at a time to ensure the highest quality of work. Please fill out our Advisory Services Typeform, and our team will be in touch as soon as possible.
Are the Domains and Brand IP seen on $5.vc for sale?
Yes, but limited to $5.vc annual subscribers only. Any negotiated sale typically includes the transfer of domain, any collected emails from said domain, and any agreed upon advisory services from $5.vc (deal terms will vary). To get in touch, please fill out our Sales Inquiry Typeform.