...once you've attracted a new customer.
I recently gave a talk at the bi-annual customer lifecycle conference in Holborn, London hosted by the good guys @ometria.
The event focused on “Customer Retention” and I’ve summarised the key takeways from the talk below and included the full length version and Q&A at the bottom.
The gift of data - use it
If you are selling a product or service online, here’s the good news, you are sitting on valuable information that you can use today to better understand your business and take data driven actions to improve it.
On a simple level, understand how many customers have shopped this year? How many customers haven’t shopped this year? How many newsletter subscribers have never shopped! Your marketing team can use this information to greatly improve the success of communication efforts. ** you can get to this information by running your order or customer export against your newsletter information or speak to the guys @ometria.
Know your customer - they are real people, not just data points.
Do you know who buys your stuff? Think about it, do you really? It is so important that as things become more and more digitized that we don’t lose sight of who’sbehind the data. After all, at the end of every new customer acquired, each visitor metric reported and every new sign up added there is a person.
When combining customer profiling with your data the insights can be enlightening, and when applied, we have seen revenue per email grow 10x.
Email is not dead - take it to the next level
When you have done all the hard work to attract a new customer, what are you now doing to keep them engaged and encourage them to buy for a second time? Do something about it, build a retention model (watch talk for full example) or simply send out quarterly manual email blasts to your different customer segments with a tailored message.
Sending the same message to your top spending customers and to new sign ups who’ve never bought is kind of nuts! What you're trying to achieve is different, they're at opposite ends of their journey with you, their needs and wants from you differ, the list goes on... Automated emails allow you to add this layer of tailored communication without sucking up unnecessary resources.
Key metric to work out here is your churn rate: the % of customers your business is leaking every year. Car's can have oil leaks every so often but you'd take your car straight to the garage if it was spurting oil - make sure you've checked and fixed your churn rate before you go on another New Customer Acquisition attack.
3 Quick Customer Retention Moves You Can Run On Today!
Know your customer - get heads of product, marketing and customer service to profile privately on a piece of paper the business’s customer. Have a 10 minute standing meeting to discuss the findings - are you aligned in your assumptions?
Do what you can to retain them - calculate your churn rate and work with your marketing team to make sure you are doing what you can to keep existing customers engaged and encourage another sale - this could be a full retention model or quarterly manual blasts. Monitor your churn rate and tweak accordingly.
Tailor your message - segment your customer base using your data and send tailored automated emails to specific ones reflecting the different outcomes you desire i.e. deeply engage/reward your VIP customer, incentivise dormant customers back, educate and convert new sign ups who haven’t yet shopped.
A lot of brands are misbehaving in this area, if you’re trying to wrap your head around it or have any questions, add me on Skype and I'd be more than happy to lock in a time to speak.