The document outlines the importance of customer retention in e-commerce, emphasizing that existing customers are critical for profitable growth. It debunks common myths around customer retention and presents a three-step strategy: utilizing consistent data, personalizing communication, and creating engaging experiences for customers. Key takeaways include focusing on retention alongside acquisition, leveraging customer lifetime value, and personalizing interactions to enhance loyalty.

1. RETENTION PLEASE!h o w t o m o t i v a t e m o r e c u s t o m e r s t o s t a y l o y a l & b u y a g a i n
@irhodes
Ian Rhodes
Founder of Ecommerce Growth Company
Sharing 22 years of Ecommerce insight

2. 1.) Why customer retention is critical
2.) What actions you can take
@irhodes
THIS AFTERNOON’S AGENDA IS PRETTY SIMPLE

3. There’s a huge
profitable growth
opportunity for you in
CUSTOMER
RETENTION
@irhodes Source: Shopify

4. YOUR CURRENT
CUSTOMERS ARE YOUR
MOST VALUABLE
MARKETING ASSET
don’t just treat them as one long list
of names in a database

5. ?With all your focus on new
customer acquisition are you
shackling profitable sales growth?
@irhodes

6. THE CASE FOR RETENTION
The Value Created
The Ease of Delivery
The Opportunity Gap

7. Retention: Evidence in Data
Country/Region Website
Visitors
One Time
Purchasers
Repeat
Purchasers
France € 1.83 € 5.49 € 11.76
Germany € 2.53 € 6.19 € 10.59
United Kingdom £ 2.13 £ 5.10 £ 11.53
Europe € 1.75 € 5.34 € 11.54
United States $ 2.06 $ 5.22 $ 10.24
Source: Adobe 2012 Study - https://irhod.es/adobe-ret
EXHIBIT A: The value of a website visitor
@irhodes

8. Retention: Evidence in Data
Platform Effective?
Email Marketing 56%
Social Media Marketing 37%
Content Marketing 32%
Referral Marketing 26%
SEO 13%
Paid Search 4%
Source: MarketingCharts.com Study
EXHIBIT B: The Ease of Delivery
@irhodes

9. Retention: Evidence in Data
Growth Strategy % Greater Focus
Customer Acquisition 44%
Customer Retention 18%
Both or No Idea Whatsoever 38%
Source: MarketingCharts.com Study
EXHIBIT C: The Opportunity Gap
@irhodes

10. 3 Myths We Need To Bust
1) Customer retention is only important to established brands
You don’t have time to focus on retention
If we give a good service, customers will come back anyway
@irhodes

11. 3 Myths We Need To Bust
Retention is only important to established brands
2) You don’t have time to focus on customer retention
If we give a good service, customers will come back anyway
@irhodes
3 Myths We Need To Bust

12. 3 Myths We Need To Bust
Retention is only for established brands
You don’t have time to focus on retention
3) If we give a good service, customers will come back anyway
@irhodes
3 Myths We Need To Bust

13. What are you doing to
retain more customers?
@irhodes

14. This isn’t retention.
This is random.

15. 3 steps to a damn good
retention strategy
Consistent data + Welcome experience + Personalised communications
@irhodes

16. Step 1
You need data.
However.
It’s different.
Step 1

17. What goes on
under the
funnel?
@irhodes

18. @irhodes
Recommended
Tool: www.Glew.io
… also Exponea, Ometria and email service providers

19. Understanding CLV
Customer Lifetime Value
@irhodes
CLV = Average Order Value x How Often Purchases Made

20. Product & Category
Marketing Channel
Price Point (AOV vs APF)
+
Recency (How Soon?)
Frequency (How Often?)
Monetary (How Much?)
@irhodes
DIG DOWN INTO CLV

21. Create a post
purchase
experience
Step 2
@irhodes
onboarding new customers & thanking
repeat customers
… this is the impact of email segmentation
*60% of consumers are more likely to repeat-
purchase from a retailer or brand that
communicates with them directly after a sale.
*Narvar.com

22. Make
customers feel
like they’re
joining your
club
@irhodes

23. Recognise
Repeat
Customers
GET PERSONAL
• Thank them for their repeat business
• Send from a ‘real’ human email address
• Remind them you’re there to help
• Introduce your VIP loyalty programme
UNLOCKING THE 2nd & 3rd PURCHASE IS
CRITICAL TO BUILDING LIFETIME VALUE
@irhodes

24. Let people in… open
your doors a little wider
Consider how you introduce new
customers to your entire product range
@irhodes

25. Master the art of
email personalisation
Step 3
@irhodes

26. Send behaviour-triggered emails
@irhodes
One example:
The return of the
abandoning browser
Plain Text styled emails work
brilliantly…
Human-to-Human

27. Create workable segments
What did they last buy?
When did they last buy?
How did they last buy? Discount? Full Price?
How much have they spent?
Did they buy as a gift?
What about people that have never bought?
Domestic or International?
Make the shift from the email blast
to the personalised recommendation
@irhodes
[

28. Value Your VIPs
VIP = VERY IMPORTANT PEOPLE
Are they aware that they’re a VIP of your brand?
How do you define a VIP within your own business?
How will you demonstrate their value?
- First access?
- Exclusive offers?
- Tiered discounts?
- Exclusive content?
@irhodes

29. 5 Key Takeaways
ü As sexy as it may be, it’s not all about
acquisition
ü Success in retention impacts your
approach to acquisition
ü Learn the tools and discover the data
ü Create a club - build the best welcome
sequence your customer has ever
encountered
ü Personalise. Personalise. Personalise.
@irhodes

30. Let’s wrap up.
ian@irhodes.com
www.irhodes.com/newsletter
@irhodes