Take it from Slater McLean, co-founder of Oliver Charles. The brand reduced its customer retention rate from 20% to 5% by convincing first-time customers to join a challenge: “The 1-Week Challenge encourages our customers to wear our product every day for a week straight. If they do it and send us a photo each day, we refund them $50.
“This incentives customers to fully experience the value our product offers,” Slater says. “Those who complete the challenge are 50% more likely to return and buy more sweaters.”
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Use dunning management software
Research shows three-quarters of ecommerce netherlands phone number list businesses plan to offer subscriptions by 2023, largely because they give scaling businesses sustainable revenue. Subscriptions also lend themselves to customer retention: once someone signs up, they’re authorizing the brand to make repeat purchases on their behalf.
Pet Joy is one DTC brand taking advantage of the subscription boom. However, its vice president, Jeffrey Petett says, “The main word internally these days is involuntary churn; losing customers not because they canceled, but because the credit card didn’t bill. For us, that’s about 13% of our monthly customers, and 28% for the yearlies.
“Most of the things we do, like sending out emails, don’t really affect that, since a credit card is going to bill or not—it doesn’t matter about the customer. We noticed that by retrying the customer every Friday for the next few weeks, we could get back about a quarter of them.”
, improve customer retention—with dunning management software. The following tools will automatically notify customers who need to update a soon-to-expire payment card:
Churn Buster
Bold Subscriptions
Recharge Subscriptions
Customer retention email strategy:
Eight in 10 businesses use email marketing for customer enhancing cloud security in response to growing digital threats retention. Why? Because it gives you a direct line of communication with your current customers. Some 80% of the US population uses email—and many of them are open to receiving marketing emails from brands.
But the email marketing strategy you’re using to acquire new customers isn’t the same strategy you’d use to retain existing ones. Your current customer base likely be numbers already knows, likes, and trusts you. They’re at the bottom of the marketing funnel and need to receive a different type of content before they’re ready to buy again.
Here’s how to build an engaging customer retention email strategy.