11 High-Converting Customer Retention Strategies for DTC Brands

June 16, 2022

 

Ecommerce businesses have it rough.

 

On one hand, you have the constant challenge of acquiring new customers, on the other hand, you have to work hard to have your current customers around. And ideally, get them to buy more from your ecommerce brand by retaining them.

 

Retention marketing means different things to different businesses. But in general, it’s about using helpful customer retention strategies to have satisfied and engaged purchasers. 

 

And it is one of the most vital aspects of any ecommerce business.

 

After all, it’s much cheaper and easier to have a customer for a longer period than to acquire a new one because of the costs associated with marketing and sales.

 

Let’s analyze these two business activities in more detail.

 

Customer Retention vs. Customer Acquisition

While both customer retention and customer acquisition are essential, they are not exactly the same thing.

 

Customer Retention

Customer retention is all about ensuring your current customers’ are content with your products/services so that they give you repeat orders and increase the customer lifetime value.

 

It can be done through providing excellent customer service, offering great products, and maintaining a positive relationship with them—in short providing a great ecommerce experience.

 

Customer Acquisition

Ecommerce customer acquisition, on the other hand, is all about finding new shoppers to grow your ecommerce brand. It requires marketing, advertising and other promotional/sales campaigns that could take up significant capital and resources initially.

 

However, it can be really profitable in the long run.

 

As an ecommerce business owner, you need to leverage both—customer retention technique and customer acquisition to take your online brand to the next level.

 

For this article, we’re going to learn some of the best customer retention strategies.

 

But before that…

 

What is Retention Marketing?

Retention marketing is a marketing strategy employed by ecommerce businesses to make customers buy from them for as long as possible. It typically involves strategies to make them feel valued and appreciated with the hope that they will remain loyal to the brand.

 

Top 3 Benefits of Retention Marketing

Retention marketing strategies for ecommerce brings several benefits. Some of them are:

 

Benefit #1: Retain ecommerce customer without much investment

With retention marketing, you can have buyers for a longer duration buying from your brand without having to do any additional investment. Because once a customer joins your purchasers list, you just have to engage with them strategically with very less investment.

 

All you need to do is—sign up for the right retention marketing tools or reach out to Zoronto’s ecommerce retention marketing service provider for a consultation. And, we’ll help you with retaining your buyers and boost your revenues.

 

Benefit #2: Earn more word of mouth referrals

When customers are retained, you get more opportunities to provide them with a memorable shopping experience on your online brand. And, such buyers are more likely to refer your business to their friends and family. Using the right customer retention strategies therefore helps you earn more word of mouth sales.

 

Benefit #3: Reduce customer churn

A low churn rate for your ecommerce business means you have good customer retention strategies already in place, and you can allocate more time and resources on other critical facets of your DTC brand.

 

As you are now familiar with retention marketing and its advantages, we can take a look at some of the strategies you can use to grow your DTC brand.

 

11 High-Converting Customer Retention Strategies

The below customer retention strategies work regardless of what products you sell on your ecommerce store.

 

1. Maximize Your Customer Retention With Push Notifications

Push notifications mean different things to different people. Some might think of them as a waste of time and resources while others see them as a powerful marketing tool.

 

Regardless of your opinion on push notifications, there’s no denying its potential of a good customer retention plan for online ecommerce brands. 

 

To get the most out of your push notifications for customer retention, you need to:

 

Notify customers of updates

Customers appreciate being kept in the loop, so you can use push notifications to let them know about updates and changes about your brand’s products and services.

 

Have relevant notifications

You need to make the notifications relevant to your customers. Sending irrelevant messages will only annoy them and could result in them unsubscribing from your push notification list.

 

Create a sense of urgency

If you want to encourage customers to take instant action, use push notifications with a sense of urgency including messages like “sale ends tomorrow” or “limited time offer.”

 

Make it easy to unsubscribe

Some customers might not want to receive push notifications, so make it easy for them to unsubscribe. You can do this by including an unsubscribe link in each of your notifications.

 

With this marketing method, the notifications must be interesting, relevant, and timely.

 

How to Setup Push Notifications?

You can set up push notifications with a tool called PushOwl. It is a widely popular ecommerce tool used by many Shopify stores and allows you to do effective ecommerce marketing automation.

 

Some of the core features of PushOwl are: 

  • Customer campaign reports
  • Buyer behavior analysis
  • Personalized marketing
  • Timely customer alerts

 

2. Send customer retention emails

Sending emails to customers is an effective way to sell your products to all types of ecommerce customers.

 

However, it’s necessary that your emails are well-crafted and relevant to your customers’ needs if you want them to be effective in retaining customers. You can suggest relevant products to new buyers while emailing them. Checkout how Crate&Barrel does it.

 

 

an example email for sending retention emails

 

You can manage all your email campaigns with the help of Klaviyo, a powerful email marketing tool for direct-to-consumer businesses.

 

With features like one-click integrations, ROI-based report, laser targeted segmentation, and pre-built autoresponders, it helps you run ecommerce email marketing campaigns that yield results.

 

We, at Zoronto, have been able to help our client boost their email marketing revenues by 3x in 90 Days. While working on it, we basically revamped the strategy and focused on:

 

  • Send Time
  • Tone of Voice
  • Design Revamp
  • Segmentation

 

And that’s all. Below is a summary of the results we got for this client:

 

 

ecommerce email campaign case study where Zoronto helped a client boost their revenues

 

You can go through more such case studies where we helped our clients grow their ecommerce business.

 

4 Tips to Write Effective Customer Retention Emails

Tip#1: Focus on the benefits of staying a customer

To get the most out of your emails, highlight the benefits of continuing to purchase products from your DTC brand, such as special offers, exclusive privileges, and better convenience.

 

Tip#2: Keep your emails relevant

Customers don’t want to receive irrelevant emails, so the content of your emails should be timely and relevant to their interests.

 

Tip#3: Make it easy to unsubscribe

As common as this may sound, many ecommerce organizations still fail to make it easy for their email subscribers to unsubscribe. And, that frustrates a lot of users. You see, being able to get off your email list is their right. So just remember to have an easy-to-find unsubscription button in all your emails.

 

Tip#4: Test and measure your results

Finally, test different versions of your emails to see which ones are most effective in generating sales. Measuring the results of your email campaigns can help you to optimize them and get higher returns.

 

3. Create a Smooth Onboarding Process

Onboarding is the process of integrating a new buyer into your ecommerce brand. It is a vital part of the overall customer journey as it can make or break his/her relationship with your online store.

 

In fact, only if the onboarding process is seamless, the customer sticks around and makes his/her first purchase. Otherwise, you’re likely to lose that purchaser forever.

 

There are a few key things you can do to build a hassle-free onboarding experience for your shoppers.

 

  • First, you must have clear and concise instructions throughout the process. If the instructions are confusing or difficult to follow, the customer is likely to give up on your ecommerce site.
  • Second, you need to build a process that is quick and easy. If it takes too long or is too complicated, the customer is likely to waste a lot of time on the website.
  • Third, you must be available to help the customers if they have any problems during the onboarding journey.

 

With these simple strategies, you can create successful onboarding for your buyers.

 

4. Leverage the power of SMS marketing

SMS marketing is one of the most efficient and effective ways to reach out to customers and retain them. It is a personal medium that delivers a high ROI, especially for ecommerce businesses.

 

And, it is highly preferable to the consumers as per this report.

 

It says, 45.5% of consumers are most likely to opt into SMS marketing from e-commerce and retail brands.”

 

However, it also happens to be one of the most underutilized marketing channels.

 

To use SMS marketing as a customer retention strategy, you need to incorporate several key elements.

 

You can do that by:

 

Segmenting your customers

Not all customers are the same, and they don’t all require the same marketing messages. Segmenting your customers allows you to target them with relevant marketing campaigns that are more likely to resonate with them.

 

There are many ways to segment customers, but some of the most common methods include segregating them by demographics (age, gender, location, etc.), purchase history, and engagement level.

 

Sending targeted messages

Once you’ve segmented your customers, you need to start sending them targeted messages. These messages should be relevant to the specific group that they belong to and should offer them some sort of value.

 

For example, you can send a targeted message for customers who have purchased in the past offering them a discount on their next purchase.

 

Make it easy to opt-in and opt-out

One of the biggest benefits of SMS marketing is that it’s a permission-based marketing channel. This means that customers have to opt-in to receive messages from you, and they can easily opt out at any time.

 

It ensures that only interested customers are receiving your messages, and it also makes it easy for them to unsubscribe if they no longer wish to receive the SMSes.

 

5. Build a community

Among all the customer retention strategies, building a community is perhaps the most challenging yet the most crucial strategy. It is in fact the backbone of not just ecommerce businesses but any organization.

 

That means, you need to have a bunch of raving fans that have a sense of belonging to your brand to grow it.

 

To build an online group that adores your product and spreads the word about it, you need to:

 

Step#1. Establish a clear purpose

Your community should have a clear purpose, such as providing support, sharing ideas or even promoting your product among friends and colleagues. This allows you to have your users always engaging with your online brand.

 

Step#2. Create a welcoming environment

Build an environment around your business that is welcoming and supportive for new users. That’ll encourage members to participate and be more involved.

 

Step#3. Foster engagement and participation

Encourage members to participate by posting interesting content and hosting discussions. The more interactive members are with your brand, the more likely they are to stick around.

 

Step#4. Offer incentives for participation

Offer incentives such as badges, rewards, or discounts to encourage members to participate. 

 

create a helpful community for your ecommerce brandby sharing tips & tricks, offering discounts on new products, encouraging them to share selfies, etc.

 

 

Having a group of people in your ecosystem that helps in customer retention can seem like a lot of work, but it’s worth it.

 

6. Be proactive with customer support

Customer support is a critical part of customer retention strategies. By providing excellent support, you can prevent them from leaving your online brand. There are several ways to use support services as tool for customer retention:

 

Offer excellent customer service

Your buyers will be more likely to stay with your business if they receive prompt response to their queries and concerns. Your team must be knowledgeable, friendly and should be able to solve problems quickly.

 

You should also make it easy for your shoppers to contact you. Provide a phone number, email address, or chatbox on your website, and respond to inquiries promptly.

 

Respond to complaints quickly

If a shopper has a complaint, you need to respond quickly and politely. Address the issue and try to find a solution. Do not ignore complaints or make excuses. Show your customers that you care about their satisfaction and are willing to work on resolving any issues they have.

 

Fulfill your promises

If you promise something, ensure that you follow through. If you can’t fulfill a promise, let your purchaser know as soon as possible and offer a solution. Failing to meet your commitments can cause them to lose trust in your business and may lead to them leaving.

 

7. Setup a subscription model

The subscription model can be immensely helpful in retaining ecommerce customers. It allows you to be in touch with your buyers regularly, which builds trust and strengthens the relationship.

 

Additionally, it also helps in understanding buyer behavior and preferences, which can be used to improve your products. You can use a subscription model for customer retention by:

 

Offering a discount on the annual subscription: A lot of ecommerce stores offer a discount on the annual subscription as compared to the monthly one. It encourages customers to subscribe for a longer period.

 

Sending out regular newsletters and updates: Updating the consumers about the latest products, offers, and discounts helps in retaining them. You can do this by sending out regular newsletters and updates.

 

Sending personalized greetings on special occasions: Sending personalized greetings on special occasions shows your customers that you care. You can include a special offer or discount in the greeting to make it even more appealing.

 

Hosting contests and giveaways: Running hosting contests and giveaways engage your customers. You can offer a prize for the winner of the contest or giveaway.

 

8. Use post-purchase use tips

Post-purchase usage tips can be one of the most beneficial customer retention strategies. When customers are satisfied with their purchases, they are more likely to remain loyal to the brand and make additional purchases in the future.

 

example of a post-purchase use tips for your ecommerce store

3 Tips for Using Post-Purchase Effectively:

  1. Create awareness around the customers not just about the features but benefits of their purchase. If they are not using the product to its full potential, they may be less satisfied with their purchase.
  2. Prepare helpful tutorials, guides and make it easy for the customers to access them.
  3. Offer customer support in case of any problems or questions about how to use the product.

 

When you help your customers use their purchases effectively, they are likely to join your community and even spread the word about it.

 

9. Create a shopping experience worth repeating

image to depict that you can provide a great shopping experience to the customers by offering free gifts, bonus gifts,

 

A great shopping experience is what makes customers return to a store. There are many ways to create an enjoyable experience for customers, but it all starts with the basics. To provide a great shopping experience for customer retention, you need to:

 

Build your online brand in a user-friendly way

When a customer can’t find what they’re looking for, it’s frustrating and they’re likely to leave. But if the store is organized properly and the UI/UX offers a more hassle-free experience for customers to find what they’re looking for.

 

Have a knowledgeable support team

Customers will appreciate knowing that they can trust your employees to answer their questions and help them find what they need. Employees who are knowledgeable about your products will make the customer’s experience more enjoyable.

 

10. Personalize by Preference and Behavior

Personalization is an effective customer retention strategy. You can customize your sales, marketing efforts by preference, like what they wear or by behavior, like what products they prefer, how they use your product, and what they think of it.

 

image to showcase how to personalize by taste and behavior for your customer 
retention

 

With so many channels to collect customer data, there are endless opportunities to personalize the customer experience. For that, you must:

 

Start with the buyer preference: Buyers appreciate it when you remember their likes and dislikes.You can use their purchase history and browsing behavior to recommend products and content they might be interested in.

 

Focus on behavior: Customers appreciate it when you recommend products and services that are tailored to their individual needs. Use data from how they interact with your product to personalize the experience. To do that, you can use dynamic content. It means using customer data to tailor the content on the page, making it more relevant and interesting to each visitor.

 

11. Overdeliver on Your Unboxing Experience

Unboxing is an exciting experience that customers look forward to and is among the top customer retention strategies. It’s the moment when they finally get their hands on the product they’ve been anticipating. But, it can be even more exciting for the buyers if you over deliver on your unboxing experience.

 

To do that, you need to do the following:

 

Create top-notch packaging: When customers receive their product, they should be greeted with high-quality packaging. This means ensuring that your packaging is sturdy and looks good. Use quality materials that showcase your brand’s style.

 

Include a personal touch: Adding a personal touch to your unboxing experience can also make a difference. For instance, you can include handwritten notes, thank-you cards, or little gifts to show your customers how much you appreciate them.

 

Think outside the box: Get creative with your packaging and unboxing experience. Try something new and unexpected that will wow your customers.

 

Make it environmentally-friendly: Use recycled or sustainable materials for your packaging whenever possible. This shows your customers that you care about the environment and their satisfaction.

 

 

Ecommerce Customer Retention — SNOW Unboxing Experience from COMMON THREAD & ADmission on Vimeo.

With these easy-to-follow strategies, you can overdeliver on your unboxing experience and create happy, satisfied customers.

 

Customer retention strategies are important for DTC brands. So, make sure you use the above customer retention strategies and create an exceptional experience for your buyers. Remember, happy customers are more likely to become brand advocates and refer their friends and family to your products. 

Ready for success?

Book a free consultation with one of our retention experts today &
discover how we can create a winning marketing program for your brand.

Book a free consultation with one of our retention experts today & discover how we can create a winning marketing program for your brand.