3. Four main reasons why you should implement a retention strategy pre and post holiday season:
Grow Customer Lifetime Value
Increased customer lifetime value (LTV) is the main benefit of customer retention strategies, which is why D2C brands need to make it a priority. When you have a high LTV, your customers are more likely to shop with your brand again and again. One of the best ways to increase LTV is to focus on retention tactics such as personalizing the post-purchase experience, utilizing referral marketing, or providing efficient customer service.
Build Customer Loyalty
DTC retention strategies put the customers' needs and wants at the forefront, and that doesn't go unnoticed. Whether you give customers personalized offers, offer referral rewards, or utilize loyalty rewards programs, these actions build relationships and turn customers into brand ambassadors. And brand ambassadors go on to tell their family and friends about how much they love your brand, so by focusing on the happiness of one customer, you've actually gained a few more.
Improve the Overall Customer Experience
Retention re-focuses your marketing strategy on relationship building and personalizing experiences because shopping is just that, it's an experience. If you make that experience memorable, positive, and personal your customers will be happier.
When you have the right resources to support your internal team, increased productivity is a natural result. Customer service is a huge component of customer retention and satisfaction. Brands often expand customer service teams to meet the demands of the holiday season, but that's not enough. Your customer service team needs to be able to go above and beyond for customers no matter what time of the year.
Tips to fill out your customer retention strategy
Don't wait until the holiday season is over to start implementing customer retention strategies. Start today. Here are a few tips to get your retention efforts rolling:
Implement a customer loyalty program: You can't go wrong with rewarding people who shop with your brand! Customer loyalty programs include points programs, tier-based programs, free gifts, or subscriptions, to name a few.
Prioritize the post-purchase experience: From branding shipment tracking pages to providing top-notch customer service to simple returns and exchanges, the post-purchase experience can be a make or break for customer retention.
Value personalization: Nothing is better than a personalized customer experience. You can do this through personalized offers, handwritten notes, or an extraordinary unboxing experience.
Utilize referral marketing: Referral marketing encourages existing customers to recommend your brand to their friends and family. Existing customers are given a referral code or link to send to friends and family and when it's used, they get rewarded for it.
Don't get swept up into the hustle and bustle of the holiday season and slack on your customer retention efforts.
4. Five brands that can guide you through the holiday rush and help increase your customer retention rate:
Who is Octane AI?
Octane AI is the zero-party data marketing platform for Shopify and Shopify Plus merchants. With Octane AI, brands can convert and retain more customers by collecting zero-party data via quizzes and conversational pop-ups, followed by leveraging that data across marketing channels like their website, email and SMS to improve the customer journey with personalization.
Collect zero-party data to understand your buyer and build lasting relationships. The only way to convert and retain your customers is to understand who they are and what they want. The holiday season is a great time for brands to build their customer base, so don't squander it! If you were waiting for an opportunity to start collecting zero-party data (high-value data that a customer intentionally and directly shares with a brand), now is the time! This type of data can help you personalize the entire customer journey for each of your customers, which in turn will lead to a lasting relationship.
Grab that opt-in information early on, extra points for zero-party data too! During the holiday season, stores receive a lot of traffic, it's the hottest time of the year to be in ecommerce! But unfortunately, most site visitors won't turn into customers. And that's okay as long as you collect their opt-in data (email and SMS). Why? No purchase doesn't have to mean no relationship. By collecting that opt-in data you can nurture that prospect and convert them into a customer over time.
But wait, there's more: a website pop-up only allows you to collect opt-in info, so when it is time to reach out to that skeptical prospect you won't know anything about them that may tip the scales in your favor. Octane AI's Conversational Pop-ups enable the collection of opt in information along with zero-party data and making a product recommendation -- all from a single pop-up. That way, when you followup with that site visitor, you'll have something unique to chat about!
Integrate your data with Klaviyo to send personalized email messages. Collecting zero-party data doesn't mean a thing if you don't actually leverage it. After collecting the data, make sure to integrate it with Klaviyo and other providers to send personalized email or SMS messages. Want to know why that is important?
Learn from Doe Lashes! This multimillion-dollar beauty brand uses a product-finder quiz on their website and through the zero-party data collected, they learned the surprising fact that a large portion of their visitors were new to using false lashes. They immediately leveraged that insight to overhaul their content strategy and to create a new email welcome series in Klaviyo to cater to those customers and teach them about lashes, which resulted in a big lift in revenue and conversions.
Your relationship doesn't end after check out: use post-purchase quizzes. Keep building and nurturing your relationships with your customers. A great way to do so is by sending post-purchase quizzes via email. If you know a customer was shopping for friends & family, which is likely during the holiday season, send them a quiz to find out what's the best thing for them, for example “You are making someone very happy with [product name], but have you found yours yet? You can also use the post-purchase quiz to ask questions that will inform your product roadmap, ask about customer feedback and a whole lot more!
Above all else, make the experience a personal one. Cultivating a unique online shopping experience and sending personalized messages based on what you've learned about each customer will help you stand out, connect on a deeper level and encourage repeat business. And don't forget, the holiday season is just the beginning. Now that you are collecting zero-party data, you can use it to send personalized messages and stay in touch with your customers throughout the year! Zero-party data is the gift that keeps on giving, limited only by your imagination! 🎁 🤩