Boryl: 3 strategies to boost e-commerce retention

Boryl: 3 strategies to improve the sustainability of an e-commerce!

Boryl is an operational data marketing agency whose main mission is to support companies with online business (e-commerce, SaaS, marketplace, lead generation, etc.) to deploy an automated relationship marketing system and great

The goal is to allow these companies to boost their acquisition and improve their retention by delivering to their customers and/or prospects a personalized and cohesive experience at each of the contact points.

With many years of experience, Boryl marketing automation agency gives us 3 awesome strategies to improve customer retention in your e-commerce!

What is customer retention in an e-commerce?

Customer retention in an e-commerce is nothing but its ability to build customer loyalty over time.

A loyal customer is a customer who frequently generates additional value (new purchases) over time.

According to some studies, it costs an average of 5 to 7 times more for an e-commerce to convert a new customer than to re-convert an existing customer.

Then you will understand the importance of a good maintenance strategy!

3 strategies to improve e-commerce customer retention

Prioritize your new customer acquisition campaigns smartly!

To improve your overall e-commerce retention, you can analyze your current customer database and identify which segments of people have been the most loyal in the past.

By exploring your customer database, you will be able to direct your acquisition campaigns to the most loyal segments of people, which will directly impact your overall e-commerce customer retention and your profitability.

These segments can be achieved using multiple dimensions and KPIs.

Examples of dimensions: Customer age, gender, country, city, social/demographic Facebook Ads adgroup targeting where you got it, etc.

KPI examples: Customer lifetime value (CLV), customer life, redemption rate, retention rate, churn rate, etc.

For example, you can direct your acquisition campaigns specifically to women aged 35 to 50, who live in the provinces, because according to your analyses, their customer lifetime and their customer lifetime value are more higher than average.

Some advertising platforms can also do the segmentation and targeting for you if you keep sending them enough data on the most loyal customers (the champions) in your database.

For example, this is possible with Facebook Ads lookalike audiences.

Facebook Ads takes care of targeting (using the vast amount of data it has on its users) people who are similar to the customers you’ve passed on to it. A fearsome weapon!

Offer the right product promotion, at the right time and to the right customer!

Also by analyzing your existing customer database, you can determine for each combination (person segment) / (first purchased product) the best time to push the most appropriate promotional product to them. This way, you will greatly increase the chance that your customers will make a second purchase.

For example, you can promote for the product “grey plaid” 30 days after the first purchase of women aged 35 to 50, living in the provinces, whose first purchase is the “dark green pajamas”, because according to your reviews, this is a scenario that comes up often.

This promotion can be carried out through an SMS push notification, a media advertisement or an email. You can also use these 3 levers simultaneously under certain conditions to optimize marketing pressure/consistency.

Identify the recurring causes of churn and fix it!

Another technique to improve the retention of an e-commerce consists of analyzing and understanding why a customer no longer buys. Yes, it seems logical… But how to do it?

The easiest way to identify a customer who no longer buys is to calculate their average purchase frequency and consider them “churn” if they haven’t bought x times longer than their purchase frequency. meaning.

Then, to determine the cause, there are many methods of investigation, here are two simple ones:

  • Determine the top x of the final products purchased before churn and inspect them
  • Identify the top x customer service loan requests before churn and act accordingly

The last word

Because of their significant impact on e-commerce profitability and growth, sustainability issues should be at the center of their strategy.

In addition, due to the growing loss of data acquisition (GDPR, end of third-party cookies, etc.) retention tests will become increasingly important for online businesses.

In fact, unlike acquisition analyses, retention analyzes have (if the collection work is done correctly) all the essential data to produce reliable and actionable insights.

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