eCommerce Retention Marketing: 4 Proven Tactics to Skyrocket LTV
Jerrel Reigada
December 21, 2022
Your brand can't rely on new customers alone. Eventually, the influx of new faces slows down. When that happens, a business needs returning customers to help it stay in the green. The key to solving that challenge?Retention Marketing.Repeat customers spend an average of 67% more than their first-time counterparts.In this post, you'll learn just how to increase the chances that each new customer keeps coming back for more.So without further ado, let's get right into it.
eCommerce Retention Marketing: 4 Proven Tactics to Skyrocket LTV
Jerrel Reigada
December 21, 2022
Your brand can't rely on new customers alone. Eventually, the influx of new faces slows down. When that happens, a business needs returning customers to help it stay in the green. The key to solving that challenge?Retention Marketing.Repeat customers spend an average of 67% more than their first-time counterparts.In this post, you'll learn just how to increase the chances that each new customer keeps coming back for more.So without further ado, let's get right into it.
Customer Retention vs. Acquisition
While customer retention and acquisition are related concepts, they’re far from the same.Acquisition-focused marketing revolves around tactics meant to bring in new customers.An acquisition-focused marketing approach isn’t concerned with how long customers stick around, it only aims to get them through the front doors.Retention-focused marketing revolves around encouraging customers to continue shopping with your brand.Rather than finding new faces, a retention campaign aims to ensure that any new customers turn into loyal brand followers.When it comes to brand sustainability, both approaches are an essential part of success. The problem is that only 18% of eCommerce brands focus on the retention side of things.
Customer Retention vs. Acquisition
While customer retention and acquisition are related concepts, they’re far from the same.Acquisition-focused marketing revolves around tactics meant to bring in new customers.An acquisition-focused marketing approach isn’t concerned with how long customers stick around, it only aims to get them through the front doors.Retention-focused marketing revolves around encouraging customers to continue shopping with your brand.Rather than finding new faces, a retention campaign aims to ensure that any new customers turn into loyal brand followers.When it comes to brand sustainability, both approaches are an essential part of success. The problem is that only 18% of eCommerce brands focus on the retention side of things.
Why is Customer Retention Essential for eCommerce Brands?
Each and every brand needs an influx of new customers and returning customers to stay afloat, but that begs the question:Why is it so important to not solely rely on new customers?To start, acquiring new customers is five times costlier than retaining your existing ones.This means that a brand that's entirely focused on acquisition is significantly cutting their potential for revenue.Not only that, but paying 5x more for each conversion means there are fewer viable products for your brand to sell profitably. Low-ticket products just aren’t as viable if your customers don't stick around.A loyal base of returning customers opens the door for your brand to sell a wider selection of products. Not only that, but it also provides your store with a more reliable stream of revenue to stand on.
Why is Customer Retention Essential for eCommerce Brands?
Each and every brand needs an influx of new customers and returning customers to stay afloat, but that begs the question:Why is it so important to not solely rely on new customers?To start, acquiring new customers is five times costlier than retaining your existing ones.This means that a brand that's entirely focused on acquisition is significantly cutting their potential for revenue.Not only that, but paying 5x more for each conversion means there are fewer viable products for your brand to sell profitably. Low-ticket products just aren’t as viable if your customers don't stick around.A loyal base of returning customers opens the door for your brand to sell a wider selection of products. Not only that, but it also provides your store with a more reliable stream of revenue to stand on.
How to Develop a Killer Retention Strategy (4 Tactics)
How to Develop a Killer Retention Strategy (4 Tactics)
1. Optimize Your Essential Email Drips
Email marketing is essential to successful eCommerce marketing.One of the most cost-effective ways to optimize for LTV is to re-optimize existing email campaigns. Here are a few great email drips to start with:a) Top-of-Mind DripsTop-of-mind (ToM) email drips are critical because they keep your brand at the forefront of consumer minds. While customers aren’t likely to make a purchase immediately after reading a top-of-mind email, that's not the purpose.Rather, a well-designed top-of-mind campaign ensures that your brand is the one that comes to mind when they plan on buying. The most effective ToM email drips touch base with customers on a regular basis, but don’t overload their inboxes. Weekly or bi-weekly newsletters are a great way to remind consumers and provide relevant news and updates about your brand and industry. Here's a great example of one:
1. Optimize Your Essential Email Drips
Email marketing is essential to successful eCommerce marketing.One of the most cost-effective ways to optimize for LTV is to re-optimize existing email campaigns. Here are a few great email drips to start with:a) Top-of-Mind DripsTop-of-mind (ToM) email drips are critical because they keep your brand at the forefront of consumer minds. While customers aren’t likely to make a purchase immediately after reading a top-of-mind email, that's not the purpose.Rather, a well-designed top-of-mind campaign ensures that your brand is the one that comes to mind when they plan on buying. The most effective ToM email drips touch base with customers on a regular basis, but don’t overload their inboxes. Weekly or bi-weekly newsletters are a great way to remind consumers and provide relevant news and updates about your brand and industry. Here's a great example of one:
Instead of promoting products or services, Dave (a fintech company) uses email newsletters to inform an audience with high-value content.It’s also a good idea to avoid constant promotions and/or sales within ToM drips, overpromotion your brand is bound to frustrate customers more than it helps.b) Abandoned Cart EmailsCustomers are people, and people forget things from time to time.Not every abandoned cart is intentional, sometimes it’s due to distraction or forgetfulness. That’s part of why abandoned cart drips are so essential. In fact, almost a third of consumers who click on abandoned cart emails end up making a purchase.If you don’t have an abandoned cart flow in place yet, now is a better time than ever to create one.c) Re-Acquisition CampaignsRe-acquisition campaigns are similar to abandoned cart emails, but not quite the same.The goal of a re-acquisition campaign is to bring churned, but not lost, customers back into the fold. The method to do that can vary, from top-of-mind emails to exclusive promotions, the optimal tactic depends on the brand and consumer.We recommend a mix of promotional content and top-of-mind awareness in your re-acquisition campaign. If a customer decides not to come back, it’s always a good idea to send a survey - at the very least, you can get data that will prevent future customers from churning.d) Email PromotionsYou’re already likely running email promotions for your brand, and it’s no wonder why - They’re simple and effective. The best way to optimize email promos?A/B testing and personalization - the only way to create a hyper-optimized email is by testing. Try to test each individual piece of the email (ie, the subject, the body, etc), but testing is most vital in the subject line itself.Here's a well-optimized email from Uber Eats:
Instead of promoting products or services, Dave (a fintech company) uses email newsletters to inform an audience with high-value content.It’s also a good idea to avoid constant promotions and/or sales within ToM drips, overpromotion your brand is bound to frustrate customers more than it helps.b) Abandoned Cart EmailsCustomers are people, and people forget things from time to time.Not every abandoned cart is intentional, sometimes it’s due to distraction or forgetfulness. That’s part of why abandoned cart drips are so essential. In fact, almost a third of consumers who click on abandoned cart emails end up making a purchase.If you don’t have an abandoned cart flow in place yet, now is a better time than ever to create one.c) Re-Acquisition CampaignsRe-acquisition campaigns are similar to abandoned cart emails, but not quite the same.The goal of a re-acquisition campaign is to bring churned, but not lost, customers back into the fold. The method to do that can vary, from top-of-mind emails to exclusive promotions, the optimal tactic depends on the brand and consumer.We recommend a mix of promotional content and top-of-mind awareness in your re-acquisition campaign. If a customer decides not to come back, it’s always a good idea to send a survey - at the very least, you can get data that will prevent future customers from churning.d) Email PromotionsYou’re already likely running email promotions for your brand, and it’s no wonder why - They’re simple and effective. The best way to optimize email promos?A/B testing and personalization - the only way to create a hyper-optimized email is by testing. Try to test each individual piece of the email (ie, the subject, the body, etc), but testing is most vital in the subject line itself.Here's a well-optimized email from Uber Eats:
2. Invest Resources into Long-Form Content
63% of marketers say that content marketing is an effective way to build trust and loyalty with online audiences.In a world full of eCommerce options, a strong content marketing strategy helps brands stand out from the crowd.Not only that, but high-value content establishes your brand as the go-to expert in your field. To find ideas for exactly what to create content about, we recommend studying up on SEO.Ahrefs’ blog is a great place to start.For a more hands-on example, check out the blog of Pressed.Pressed is a health and beverage eCommerce brand that sells both online and offline. One of the best sections on their website is the blog:
2. Invest Resources into Long-Form Content
63% of marketers say that content marketing is an effective way to build trust and loyalty with online audiences.In a world full of eCommerce options, a strong content marketing strategy helps brands stand out from the crowd.Not only that, but high-value content establishes your brand as the go-to expert in your field. To find ideas for exactly what to create content about, we recommend studying up on SEO.Ahrefs’ blog is a great place to start.For a more hands-on example, check out the blog of Pressed.Pressed is a health and beverage eCommerce brand that sells both online and offline. One of the best sections on their website is the blog:
A blog that's full of relevant, useful content for your audience is exactly what's going to bring organic traffic in and keep those visitors around.
A blog that's full of relevant, useful content for your audience is exactly what's going to bring organic traffic in and keep those visitors around.
3. Create a Customer-First Support Team
A brand’s customer service will make or break it.Why?A bad customer experience will dissuade a customer from ever coming back. Not only that, but they’re also very likely to convince friends and family not to buy from your brand.On the other hand, 81% of consumers report that a good customer experience means there’s a good chance they’ll buy again.Here are a few things you can do to ensure your customer support team creates repeat customers:
- Offer Multiple Support Channels
3. Create a Customer-First Support Team
A brand’s customer service will make or break it.Why?A bad customer experience will dissuade a customer from ever coming back. Not only that, but they’re also very likely to convince friends and family not to buy from your brand.On the other hand, 81% of consumers report that a good customer experience means there’s a good chance they’ll buy again.Here are a few things you can do to ensure your customer support team creates repeat customers:
- Offer Multiple Support Channels
- Created Automated Resources to Reduce Wait Times
- Train Your Reps with a Satisfaction > Profit Mindset
- Created Automated Resources to Reduce Wait Times
- Train Your Reps with a Satisfaction > Profit Mindset
4. Streamline the Shopping Experience
A tedious shopping experience is one that customers won’t return to.It’s important to regularly revisit your UX design and look for areas of improvement. As a general rule, the fewer clicks between each customer and a purchase, the more sales you’ll make. Here are a few ways you can give your UX a simple boost:
- Integrate Autofill Fields
- Use “Personalized Storefronts”
- Make it Easy to Create an Account
- Add an Auto-Order Feature
4. Streamline the Shopping Experience
A tedious shopping experience is one that customers won’t return to.It’s important to regularly revisit your UX design and look for areas of improvement. As a general rule, the fewer clicks between each customer and a purchase, the more sales you’ll make. Here are a few ways you can give your UX a simple boost:
- Integrate Autofill Fields
- Use “Personalized Storefronts”
- Make it Easy to Create an Account
- Add an Auto-Order Feature
Wrapping Up
Retention marketing is the difference between a brand that fizzles out quickly and the ones that stand strong over the years.At the end of the day, the demographics within your audience will determine which tactics are the most effective, but you can't go wrong with most of the ones listed here.If you found this guide helpful, be sure to check out more insights from the Nyla blog.
Wrapping Up
Retention marketing is the difference between a brand that fizzles out quickly and the ones that stand strong over the years.At the end of the day, the demographics within your audience will determine which tactics are the most effective, but you can't go wrong with most of the ones listed here.If you found this guide helpful, be sure to check out more insights from the Nyla blog.