SlideShare a Scribd company logo
From Acquisition
to Retention:
Optimizing Your
DTC Customer
Journey
Joe
McCarthy
Director of Performance Marketing
JM1731
1 Introduction to DTC
2 The 4 Stages of the DTC Lifecycle
3 Marketing Tactics for Each Stage
4 Q & A
Agenda
Introduction to DTC
Traditional retail
versus the DTC
model
Dimensions Traditional Digital
Reach Finite Unlimited
Personalization Mass market Personalized
Loyalty Basic Advanced
Access to customer Limited, periodic Comprehensive, real-time
Pricing Partial control Full control
Speed to market Slow Fast
Merchandising Limited control Full Control
Assortment Limited Full
Capex High Low
Overhead High Low
Adapted from Deloitte
Control of the customer experience
Higher margins
Deeper loyalty
Richer customer data
Benefits of DTC
Nike has projected that its
DTC business will reach
$16 billion in sales by the
end of fiscal year 2020.
“Hey the future
for us is DTC”
Four stages of
the DTC lifecycle
Acquisition
Learn and
Engage
Conversion
Build Trust and
Earn Sale
Fulfillment
Deliver and
Update
Retention
Recognize and
Grow Loyalty
Data
1. Acquisition
Acquisition
overview
Objective: Gain website traffic
Role: Learn and engage
Drivers: SEO, customer referrals, social
media, paid advertising, events or
pop-ups
Acquisition
Good news —
brand discovery is
at an all-time high.
Customers want
brands they
identify with—
ones that offer
authentic
experiences.
A. Marketing tactics for generating brand interest
1. Acquisition
Authenticity: Establish your brand voice, share your story,
and create a consistent brand experience across all channels.
“Storytelling is a central part of our
marketing. We think about what
stories we can feed to the press and
to social media—things that make
people take notice.
You don't push your product. You
create things that are fun to talk
about, to write about, to share.”
Personalization: Leverage all relevant customer data when
developing your social ad strategy.
Advertising Platforms
● Using email engagement and
other first-party data in social
ad targeting helps you lower
your CAC
Retargeting
email engagers
Audience: Understand the behavior of your VIP customers,
and then find more people like them.
● Frequently views
women’s sandals
● VIP customer
Audience and BI Platforms
● Sync your VIP customer segment(s)
to Facebook/Instagram
● Create a lookalike audience to
optimize your ad targeting
VIP Lookalikes
Referral Partners
● Facebook CAC $38
● Cost of Goods Sold: 40%
● Max referral incentive (to match cost
with merchandise value $95
Referrals
Trust: Demonstrate social proof by sharing customer reviews
in digital advertisements and across social media.
Review Platforms
● Use quotes as ad copy
to build credibility with
new audiences
Social proof
Acquisition
overview
Objective: Gain website traffic
Role: Learn and engage
Drivers: SEO, customer referrals, social
media, paid advertising, events or pop-ups
Acquisition
Head to
https://www.klaviyo.com/marketing-resources/ecommerce-new-normal
2. Conversion
Conversion
overview
Objective: Earn the sale
Role: Convince
Drivers: Email marketing,
onsite content, paid remarketing,
optimized landing pages, reviews
Conversion
Customers want
a seamless,
reliable, and
helpful shopping
experience.
A. Marketing tactics for winning first-time purchasers
2. Conversion
Engagement: Leverage onsite pop-ups and quizzes
to help customers find the right products.
Quiz/Survey Platforms
● Adopt a prescriptive
sales approach
● People may not know
which product is right
for them
Quizzes
Personalization: Feature relevant product recommendations
on dedicated landing pages or embed in emails.
Personalization Platforms
● Convert recipients into
customers with products
personalized to their
preferences
Embedded
feeds
Reduce Friction: Highlight the convenience of shopping
with your brand, and ensure a smooth and supportive
checkout process.
Payment and Billing Platforms
● Use onsite pop-ups to
Promote incentives like
free shipping
Shipping
advantage
● Promote payment
options to further
reduce friction
Payment
flexibility
Conversion
overview
Objective: Earn the sale
Role: Convince
Drivers: Email marketing,
onsite content, paid remarketing,
optimized landing pages, reviews
Conversion
3. Fulfillment
Fulfillment
overview
Objective: Deliver on your commitment
Role: Reassure
Drivers: Shipping and logistics platforms,
email marketing,
SMS marketing
Fulfillment
Customers want
products
delivered on
time and in good
condition.
They also want
consistent
order updates.
of consumers report product availability
and free shipping are top reasons
influencing their purchase decisions
70%
A. Marketing tactics for delighting first-time purchasers
3. Fulfillment
Delivery: Delight first-time customers with speedy and
reliable delivery. Wow them with what you deliver.
Shipping Platforms
● Dress up your delivery and
create an unforgettable
unboxing experience
Packaging
Communication: Set clear expectations and provide updates
before, during, and after items ship. Find ways to continually
deliver value.
Order Tracking Platforms
● Trigger automated emails to send
when customers receive their
order
Real-time
follow-up
● Ask customers to share
their experience or review
your product
Real-time
follow-up
● Provide further value
through SMS updates
once subscribers
order
SMS updates
Accountability: Understand that not everyone is going to
have a positive customer experience, and strive to improve
service delivery.
Customer Service
● Automate emails based
on review scores
● Offer coupons if someone
leaves a negative review
Earn back trust
Fulfillment
overview
Objective: Deliver on your commitment
Role: Reassure
Drivers: Shipping and logistics
platforms, email marketing,
SMS marketing
Fulfillment
4. Retention
Retention
overview
Objective: Increase repeat purchase rate
Role: Nurture
Drivers: Loyalty software, email marketing,
SMS marketing, community
Retention
The cost to acquire rather than retain a
customer
5x
Customers want
to be recognized
for their loyalty
and feel a sense
of community
from your brand.
A. Marketing tactics for creating lifelong customers
4. Retention
Reward: Get customers to purchase again with incentives
and discounts. Retention
● Make high-value
customers feel special
with giveaways
Birthday
treats
● Reward customers for honest
feedback by incentivizing them
with discounts
● Dollars off can be more tangible
than percentage off
● Engaging soon after first
purchase increases likelihood of
next purchase
Dollar
discounts
Predict: Engage your customers when they’re likely to buy again.
● Trigger email and SMS messages
based on a customer’s predicted
date of next purchase
Predicted
analytics
Tag: Use custom properties to create richer customer profiles
and more personalized marketing experiences.
● Take your top five hero products
and tag customers when they
view them
● Create unique emails for each
product
● Trigger sends when customers
view products without starting
checkout
Product
interest tags
Loyalty: Establish and promote loyalty programs that
recognize customers for their purchases.
Loyalty Platforms
Loyalty
program
● 61 ROI
● Redeeming members
spend 3.5x more than
non members
● And their AOV is 12.5%
higher
Community: Maintain dialogue, share useful content, and
connect your customers with other brand enthusiasts.
● Start conversations that
unite your customer
community around a
common purpose
Social sharing
● Demonstrate how to use
your product or how to
get the best results
● Try video tutorials or
livestream events
Product
how-tos
Re-engage: Don’t forget to nurture customers that might
have lapsed. Retaining them is cheaper than acquiring
new customers.
Retention
overview
Objective: Increase repeat purchase rate
Role: Nurture
Drivers: Loyalty software, email marketing,
SMS marketing, community
Retention
The DTC
lifecycle
Acquisition
Learn and
Engage
Conversion
Build Trust and
Earn Sale
Fulfillment
Delivery and
Update
Retention
Recognize and
Grow Loyalty
Data
Own your Growth
● Pre-built integrations
● CRM
● Activity history
● Segmentation
● Content designer
● Workflows and automations
● Deliverability
● Revenue attribution
● Predictive analytics
We built the first
marketing
platform with
customer data
baked in
Use API endpoints from all
customer touchpoints to
request data.
Use Klaviyo’s Event, Custom
Property, and Javascript API
to pass this information
to Klaviyo.
With Klaviyo, you
can leverage data
from all of your
channels to build
relationships
Customers have made more than $3.7 billion in
revenue in the last year alone.
Join the movement at klaviyo.com
Questions?
From Acquisition to Retention: Optimizing Your DTC Customer Journey

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