First impressions matter in any relationship. The first date. The first job interview. The first haircut at a salon. Marketers hope to leverage momentum from the first experience towards a second purchase. The one-to-two purchase conversion is the first step in what hopefully turns into a long-lasting, repeat-buying relationship.
The numbers back it up. Two-time buyers are 9 times more likely to repeat than first-time shoppers. Granted, there is some debate around this figure. How much of the 1x-to-2x conversion is ‘nature’ (acquiring great customers) vs ‘nurture’ (an effective welcome series). It’s nearly impossible to tell, but most marketers agree it’s a combination of both.
As a result, the welcome series has become a critical component to every retention marketing game plan. The welcome series — an aptly named (and relatively easy to set up) succession of automated emails that introduce a new customer to a brand— is a great start and a clear improvement to the alternative of doing nothing.
Inspired by the conversations that often take place in “Monday recap” meetings, Custora’s CEO and Head of Product wrote a power ballad about using customer analytics to bridge the gap between marketing and merchandising teams. The final output: a music video featuring hand-sewn puppets. Merchandising, marketing, and customer analytics: an unexpected love story.
One time buyers. One-and-dones. One buy stands. Buy-bye bennys.
No matter what you call them, if you work in the retail industry, they’re a real concern. The unfortunate reality is the vast majority of customers who make a first purchase just never return. By simply patching the problem with a generic welcome series, you’re leaving money on the table. Our research shows that a 1% increase in customer retention leads to a 5% increase in profit per customer.