Bringing customers back again and again after that first checkout is the key to building a strong e-commerce business: Custora’s research has found that a 1% increase in customer retention leads to a 5% increase in profit per customer.
The challenge? Customer retention can be achieved using a seemingly infinite array of methods. Email campaigns, referral programs, promotions — the list of ways to boost retention goes on and on, and encompasses many integral components of a well-rounded customer communication program.
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.