January 19, 2023
Webinar: Elevate your customer lifetime value for 2023
As retail brands emerge from the holiday period with newly acquired customers from 2022 holiday promotions, customer retention has to be top of mind.
Consumers will continue to face economic pressure and navigate fears of inflation as we enter 2023. So how can brands ensure they retain these newly acquired customers and turn them into loyal repeat purchasers?
Watch our conversation with industry experts Courtney Siegel, Director, Demand Gen at Yotpo and Megan Porteous, Head of Digital at Carve Designs as they discuss post-holiday strategies for elevating customer lifetime value and retention.
Here are our top 7 strategies from the session, along with timestamps if you'd like to skip ahead in the webinar recording to a topic that peaks your interest.
1. Focus on 3 Buckets
Convert high value one time customers into repeat purchasers
- Develop segmentation strategies to identify which customers to target and where the effort is worthwhile to ensure the right customer is coming back. <7:09>
- Loyal customers are the most valuable and most engaged segment, and will always come back to purchase. You can use a CDXP to identify your most loyal customers and give them VIP treatment, offers, and perks such as early access to sales, higher points with tiers, new product testers. <25:40>
Reactivate lapsed customers
- Re-engage lapsed customers with new product drops and back in stock. <22:56>
2. Retention is the name of the game right now
- Develop Loyalty Programs, or at the very least, give your existing customers exclusive offers. Listen to how Carve Designs bucked the system by not offering Black Friday sales and, instead, gave past purchasers exclusivity to a specific offer which resulted in triple digit growth YOY in the same time period. <10:28>
3. Capture zero-party data
Because there is such a high cost in acquiring their customers, it is important to ensure you keep them! <17:56>
- It is important to capture zero/first party data from every touchpoint and have it integrated with all systems so communication is seamless.
- Surveys and quizzes are a great strategy to really get to know who your customer is, why they are shopping, who they are shopping for, reviews, etc.
4. RFM (Recency/Frequency/Monetary) segmentation
- Carve Designs implemented Direct Mail in 2018 before it became competitive and have had good success to improve their RFM segmentation. <23:24>
- Carve is excited about taking an extra step by bringing in a monetary component to pull the very best, especially with the lapsed customers. <22:56>
5. Don't take your eyes off the metrics!
Focus on the Golden Metrics <30:18>
- Average Order Value
- Time to Next Purchase
- Purchase Recency
- Churn Rate
- Channel Growth
- Engagement Rates
- All of these metrics = Customer Lifetime Value
6. Take your data to the next level
- Experian data helps Carve understand what household groups their customers fall into, and Mosaic data is helpful to gain a deeper understanding of their customer base. <34:37>
7. Ideas for post-holiday engagement
Successful strategies to re-engage customers and encourage purchases early in the year: <39:37>
- Simple reminders around Loyalty Points gained from holiday purchases.
- Thanking the customer for just being your customer (ex: send a Christmas card thanking them, or a message from the Founder/CEO)
Watch the webinar recording for a deep dive into these top strategies and more!