This Seminar outlines in high level the definition of Retention Marketing and its importance within a successful digital marketing plan. Learn how to build strong and long-lasting customer relationships, utilize all customer experience channels (online, offline, omnichannel) through “personalized” campaign mechanisms, retaining programs, post-purchase follow-ups, loyalty program techniques, utilization of rewarding mechanisms and more...
Retention Marketing in the Digital Era - Hellenic American Union_01042019
1. Retention Marketing in the Digital Era
MAKIS THEMELIS
Chief Digital & Commercial Officer
QIVOS S.A.
Certificate In Digital Marketing
3-hour Seminar – 01/04/2019
3. 1. Customer Acquisition vs. Customer Retention: the big
challenge
2. Customer Retention Definition
3. Retention Rate Formulas to follow (KPIs & more)
4. The Role of Retention Marketing in eCommerce…
5. Case Studies & some Retention Best Practices
6. How to create a Customer Retention Strategy within your
Online Marketing strategy mix: Steps, Tips & Tools
7. 4 Practical Online Marketing Techniques to Boost Retention
8. Key Takeaways
Table of Contents
5. Customer acquisition is one of the biggest and most difficult challenges brands face today.
01. Customer Acquisition vs. Customer retention:
the big challenge
6. Attracting a new customer is 5 - 7 times more expensive than retaining an existing
one (Advertising costs, ad impressions, clicks, conversions, SEO techniques, etc.)
01. Customer Acquisition vs. Customer retention:
the big challenge
9. 01. Customer Acquisition vs. Customer Retention:
the big challenge
Customer Retention needs to be at the top of your KPIs list and represents a very
important key to e-Commerce Success, building revenue and long-term growth.
11. 02. Customer Retention Definition
Retention marketing is a strategy which focuses on your existing
customer base.
The goal is create repeat customers, and increase both their
frequency of purchase and the average order volume per purchase.
14. 03. Retention Rate Formulas to follow (KPIs & more)
The most popular metric to measure the success of a retention
marketing campaign is Retention Rate.
15. 03. Retention Rate Formulas to follow (KPIs & more)
- Retention rate measures what percentage of your customers are
retained during a given period of time.
- It is the inverse of churn rate, which measures how many
customers leave during a given timeframe.
- If a customer continues doing business with you, they are
retained. If they are no longer a customer, then are "churned".
- Determining what a "good" retention rate depends on a number
of factors:
your industry
Product
switching costs
business model
Etc.
16. 03. Retention Rate Formulas to follow (KPIs & more)
Other Key Benchmarks & KPIs to
follow are:
CLV
AOV
Purchase Frequency
Visit Frequency
17. 04. The Role of Retention Marketing in e-Commerce
18. Existing customers
already know and
love your brand and
it is more likely to
return to your e-
shop and buy again.
04. The Role of Retention Marketing in e-Commerce
Building strong relationships with your customers is key
to standing out in the increasingly competitive e-
commerce world.
Retention strategies can transform your business and
help you create customer experience (CX) excellence.
19. Did you know?
Fostering loyal customers
can boost your bottom
line without spending
more on acquisition.
Indeed, according to Bain
& Co., increasing
customer retention by
just 5% can boost profits
by up to 95%!
20. 04. The Role of Retention Marketing in e-Commerce
Targeting existing customers, apart from being less
expensive, it offers numerous unique benefits to online
businesses. The more times a customer purchases from
you, the stronger your relationship becomes.
21. 04. The Role of Retention Marketing in e-Commerce
Save MONEY & TIME
Increase CLV (Customer Lifetime Value)
Average Value Orders Step Up
Optimize on Advertisement & Other Acquisition Costs
CUSTOMER EXPERIENCE (CX)
GROW YOUR eBUSINESS FAST
DIRECT BENEFITS TO ONLINE BUSINESSES
2% increase on e-Retention Rate = bottom line optimization (Net Profit)*
*According to eCommerce Expert Richard Lazazzera
23. Advocacy Based Retention
• “Refer a Friend” Techniques
• “Consistency Bias”
• Monetary Incentives
#1 The RealReal: authenticated luxury consignment.
With an expert behind every item, they ensure everything they sell
is 100% real. www.therealreal.com
24. Retention via
Reactivation Campaigns
• Customers NO longer
engaging or “churned”
– WHO
– WHY
• PERSONALIZATION
• Email Campaigns
– Recency of Visit
– Value
– Etc.
#2 Instacart: same-day grocery delivery service by a personal
shopper (web & mobile) from various grocery stores.
www.instacart.com
25. THE 1st EMAIL
• “Re-Acquisition = Retention?
• Small Perk
• Deadline….
#2 Instacart: Reactivation Email Campaigns
26. THE 2nd EMAIL
• Follow Up Emails
• Immediate or even Daily…
• Develop your VALUE
PROPOSITION
#2 Instacart: Reactivation Email Campaigns
27. THE 6th EMAIL
• Give up??? #NOT
• EMOTIONS…
(remove guilt…)
• Extension of PERK…
#2 Instacart: Reactivation Email Campaigns
28. THE 9th EMAIL
• Give up??? #NOT
• Build more reasons
for ENGAGEMENT…
• Monetary PERK…
#2 Instacart: Reactivation Email Campaigns
29. Daily Deals Based Retention
• Discounted Offers
• Exclusivity
THROUGH
• CONSISTENCY
• BRANDING (“The WOW content”
• URGENCY
#3 HOLLAR: online dollar store. It doesn't sell cheap knock-offs, but
real recognizable brands. www.hollar.com
30. Subscriptions Based Retention (also see AMAZON Prime…)
• Once you pay up-front, you are likely to become loyal buyer
• Continuous PERKS & BENEFITS (Qualitative & Quantitative)
#4 THRIVE MARKET: membership-based e-tailer offering natural
and organic food products at reduced costs.
www.thrivemarket.com
31. 06. How to create a Customer Retention Strategy within your
Online Marketing strategy mix: Steps, Tips & Tools
32. 5 Key Steps to follow are:
1. Be Consistent: apply your strategy across all the channels that your customers
that your customers visit (e-shop, mobile application, social media, emails, even
brick-and-mortar, etc.) and build trust.
2. Build a Unified Commerce Model where the customer is, of course, the center.
course, the center.
#1
Build a Unified Customer Retention Methodology
33. 5 Key Steps to follow are:
3. Personalize communication and engagement via Data Acquiring Techniques:
Acquiring Techniques:
- Address them on their first name…
- Segment your customers…
- Cluster their needs and habits
- Reward them…
- Surprise them…
#1
Build a Unified Customer Retention Methodology
34. 5 Key Steps to follow are:
4. CX Visualization
- Seeing is Believing…
- Content Marketing
- Images / Videos
- Testimonials
- Advertorials
- Artificial Intelligence (A.I.)
- Optimize Internet of Things (IoT)
#1
Build a Unified Customer Retention Methodology
35. 5 Key Steps to follow are:
5. Set Retention Benchmarks, KPIs and Reporting, such as:
Retention Rate
CLV
AOV
Purchase Frequency
Visit Frequency
#1
Build a Unified Customer Retention Methodology
36. Did you know?
71% of consumers have ended their
their relationship with a company due to poor
customer service.
(Source: KISSMETRICS)
37. Customer service is about creating happy customers that keep coming back to you.
Brand loyalty and Customer Service go hand in hand
#2
Master Customer Service
Start thinking the
relationship with your
customers as a continuous
journey and not as a single
action.
38. #2
Master Customer Service
Find 4 more tips >>
4 creative tips:
1. Build trust (treat them as human beings and not just as data
points).
2. Listen to your customers (focus on their feedback).
3. Emphasize on your team (train the on what and why CX is
valuable)
4. Delight your customers (go the extra mile & amaze them with your
service)
39. Marketing automation tools enable you to connect with your customer with
the right content at the right moment, delivering personalized and
touchpoints.
#3
Invest in Marketing Automation
Some available tools / platforms:
• ActiveCampaign
• Hubspot
• Ontraport
• SendinBlue
• Prospect.io
40. #3
Invest in Marketing Automation
Tips on Marketing Automation Techniques:
Make real-time product recommendations during the e-store visit
based on the specific customers’ preferences
Automated cart abandonment campaigns, along with a special offer
a special offer or a discount to give incentivize accordingly
41. Taking your loyal customers for
granted is risky as customers
expect different treatment for
being loyal and staying
connected with you.
42. The prime objective of any customer retention strategy is creating loyalty.
Loyalty programs are a huge help in e-commerce. Today’s customers are always online, have
always online, have access to more choices, and can easily switch to other brands. Basically, they
have fewer reasons to be loyal than ever before.
Top e-commerce businesses reinforce their marketing efforts for retaining their most loyal customers
their most loyal customers by investing in a customer loyalty program.
#4
Implement an attractive Customer Loyalty Program
A customer loyalty program is still one of the most effective ways to drive repeat
purchases and boost brand loyalty. >>
43. #4
“
The best customer loyalty programs don’t just
don’t just engage with and reward shoppers when
shoppers when they make purchases – they also
– they also give points, discounts, etc. for a variety
for a variety of different actions.
THE REWARDS MIX:
Consumers aren’t necessarily just interested in saving money. Enhanced customer service, mobile
rewards and the ability to earn special treatment have become more important over the past few
years
Implement an attractive Customer Loyalty Program
44. Build an attractive customer loyalty program that rewards your
customers for:
writing reviews
giving feedback
hash tagging photos
referring friends
connecting on social media
#4
Implement an attractive Customer Loyalty Program
45. Did you know?
Almost half of web users expect a site to load in
2 seconds or less, and they tend to abandon a
site that isn’t loaded within 3 seconds.
(Source: KISSMETRICS)
46. Website design or frequent re-design converts visitors into customers and
returning customers.
Your e-shop is your main channel, so make sure that its performance is high;
content encourages engagement.
#5
Build a user-friendly site that converts
Extra Tip:
User Experience (UX) is key. Some tips:
1.Make the navigation easy and the structure of your website clear (can find
attitude within a few clicks).
2.Make additions that will enhance UX; add descriptions to your products, clear
call to actions, along with useful and educational content.
3.Set a simple checkout process with several payment methods.
47. Mobile presence
Consumers rely on their smartphones as information, entertainment,
companions.
Mobile phones are not just a technology device; they have become a
way of life where people spend time on daily.
#6
Focus on mobile moments & social media engagements
Tip: Leverage mobile moments to reach your customers successfully and
create meaningful and lasting connections with them.
48. #6
Focus on mobile moments & social media engagements
Social media engagements
Use constantly social media to stay connected with your customers. “follow”
by definition…
Create engaging content for your social media accounts and determine the
post.
Tip: Use retargeting ads to reach current customers & visitors of your e-shop. It
is an effective retention tactic that when used right, can increase retention rates.
49. The key to success is to test and measure all your
efforts during the customer retention process. Hence,
process. Hence,
- Optimize your strategy often and deliver A/B
testing campaigns to determine which message
message works best.
- Invest in technology, such as an advanced CRM
advanced CRM platform to get a deep activity and
insights on your customers and monitor their impact
through custom analytics and reporting.
#7
Optimize your strategy
By understanding customer behavior and
preferences, you will be able to make
personalized communications with them
and boost customer engagement.
51. #1 ABD (Always Be Delighting)
Find 4 more tips >>
1. Free delivery - On all orders, not just those over a certain amount!
2. Free returns - Convert more customers by offering a risk-free way of
purchasing
3. Click to collect - If you have a physical location, give people the option
to collect their purchase in-store
4. Personalize – show appreciation on the repeat purchases
5. Free Swags – even to random customers / 1st time buyers
6. Treat them as Stakeholders – Customer Service Excellence
7. “Unboxing” madness – make packaging fun…
Consumers always remember an exceptionally positive experience. They also
never forget a bad one.
52. #2 Desktop Push Notifications
Find 4 more tips >>
Web:
• share content
• Ask for permission (opt-in)
• You have a limited amount of
characters to work with. So make sure
your message is clear
Using Chrome, you can send web push notifications to share content and retain
customers. These work differently from mobile push notifications as they work on
desktop devices. The additional bonus is that it makes retention via mobile
channels much more affordable, as it removes the cost of creating a dedicated
mobile app.
53. #3 Advocacy via Ambassador Programs
Find 4 more tips >>
Best Referral marketing Tactic:
• Identify customers that speak about you…
• Think about the ACTUAL & PERSONALISED Reward
• Reward them accordingly
• Encourage them to create user generated content
• Even create an EVENT for them!!!
Look to social media to find posts that include your brand name. Use tools like
Mention and BuzzSumo to receive daily alerts on this.
54. #4 Cross-Channel Remarketing
Find 4 more tips >>
Google Remarketing:
• Tag all pages - give power to your marketing message
• Use dynamic lists - Allowing you to segment (like email marketing - product
pages, cart abandonment, demographics etc.)
• Exclusions - only serve ads to those who haven’t yet purchased
• Contextual targeting - target under certain interests, demographics &
characteristics
• Analyze audience response - Don’t bombard people with your message.
Figure out the right number of views that lead to a good click-through rate.
55. #4 Cross-Channel Remarketing
Find 4 more tips >>
Facebook Remarketing:
use the Custom Audiences feature to
retarget your audience on FB. There are
three different options when using this
feature:
57. RETENTION MARKETING IS EVERYWHERE!! IT IS OUR BIG BORTHER…
While e-Customer Acquisition is very important, e-Customer
online businesses and it involves examining the entire customer
way. Understand, Personalize, Execute…
Create a solid Customer Retention Strategy and it will help you
existing customers and create unique user experiences.
Find the right mix of acquisition and retention NOW!!!
08. Key takeaways
What is Advocacy Based Retention? Advocacy marketing focuses on getting current customers to talk about your product to their friends or network. It depends on capitalizing on positive experiences to not only gain customers, but increase retention. How The RealReal Increases Retention through Advocacy
The RealReal formalized their advocacy marketing with their “Refer a Friend” offer. The program encourages repeat purchases for customers who choose to refer in a number of ways.
1) Consistency Bias - By openly endorsing The Real Real, these customers are more likely to use the service again. This phenomenon is known as the Consistency Bias.
2) Monetary Incentive - Second, this program provides a direct monetary incentive to use the platform again in the form of Store Credit.
What is Advocacy Based Retention? Advocacy marketing focuses on getting current customers to talk about your product to their friends or network. It depends on capitalizing on positive experiences to not only gain customers, but increase retention. How The RealReal Increases Retention through Advocacy
The RealReal formalized their advocacy marketing with their “Refer a Friend” offer. The program encourages repeat purchases for customers who choose to refer in a number of ways.
1) Consistency Bias - By openly endorsing The Real Real, these customers are more likely to use the service again. This phenomenon is known as the Consistency Bias.
2) Monetary Incentive - Second, this program provides a direct monetary incentive to use the platform again in the form of Store Credit.
What is Advocacy Based Retention? Advocacy marketing focuses on getting current customers to talk about your product to their friends or network. It depends on capitalizing on positive experiences to not only gain customers, but increase retention. How The RealReal Increases Retention through Advocacy
The RealReal formalized their advocacy marketing with their “Refer a Friend” offer. The program encourages repeat purchases for customers who choose to refer in a number of ways.
1) Consistency Bias - By openly endorsing The Real Real, these customers are more likely to use the service again. This phenomenon is known as the Consistency Bias.
2) Monetary Incentive - Second, this program provides a direct monetary incentive to use the platform again in the form of Store Credit.
What is Advocacy Based Retention? Advocacy marketing focuses on getting current customers to talk about your product to their friends or network. It depends on capitalizing on positive experiences to not only gain customers, but increase retention. How The RealReal Increases Retention through Advocacy
The RealReal formalized their advocacy marketing with their “Refer a Friend” offer. The program encourages repeat purchases for customers who choose to refer in a number of ways.
1) Consistency Bias - By openly endorsing The Real Real, these customers are more likely to use the service again. This phenomenon is known as the Consistency Bias.
2) Monetary Incentive - Second, this program provides a direct monetary incentive to use the platform again in the form of Store Credit.
Key phrase: Remember that in today’s unified commerce, it is important to retain a consistent and relevant messaging through all channels.
Key phrase: Remember that in today’s unified commerce, it is important to retain a consistent and relevant messaging through all channels.
Key phrase: Remember that in today’s unified commerce, it is important to retain a consistent and relevant messaging through all channels.
Key phrase: Remember that in today’s unified commerce, it is important to retain a consistent and relevant messaging through all channels.
