Getting customers to your Shopify store is undoubtably an important thing. But when you look at the maths the way you truly start on the journey of long-term business success is when your customers come back to purchase again.
You get them back by giving them a reason to, by delighting them in the experience you give them.
Good experiences often come off the back a series of emotions that give us a feeling of satisfaction and the desire for the same thing again.
So what’s the plan?
In this article, we’ll run through the sequential events and feelings that each of your customers goes through after their first purchase and highlight a few ways in which you can delight enough to get them back for seconds.
First off, how do we measure the success of our Customer Retention campaigns?
As always it’s incredibly important to know what we are trying to achieve and how we measure success.
There are a few metrics that are key and that are worthwhile keeping track of to determine how each initiative is working.
Percent Returning Customers (PRC) – How many of your customers return to purchase from you again? Returning customers will ultimately drive long-term business success.
Time to 2nd Purchase (T2P) – How long does it take for a customer to come back to make a 2nd purchase? In fact Adobe claims that in the United States 40% of an eCommerce store’s revenue comes from 8% of it’s customers.
Customer Lifetime Value (CLV) – How much on average does a customer spend with you over a 12-24 month period of time? This is considered really one of the most important metrics in eCommerce.
Allowable Acquisition Cost (AAC) – Armed with above data how much can you spend on acquiring a new customer? Josh Kaufman in his book “The Personal MBA” explains why awareness of this metric is critical for your business. Compare your AAC vs your actual Customer Acquisition Cost (CAC) to track the performance of your marketing efforts.
Let’s get stuck in and give our customers a reason to come back to our store
Before we get started put yourself in your customers’ shoes.
You’ve just clicked “confirm order” and bought that new Widget you’ve been saving up for. Emotions are running high and you’re excited to hear updates on the pending delivery.
Now put your business-owner shoes back on.
This is your moment to stamp a truly positive experience of your business in the heart and mind of your customer.
Build excitement, calm fears and heighten expectation.
Give them a reason to come back.
Increase Revenue through your “Thank You” emails
The “Thank You” email is the one you get immediately after a purchase.
And they get CRAZY high engagement
Accordingly to our CRM Partner Klaviyo “Thank You” emails get 352% higher open rates and 329% higher CTR than standard campaign emails
This can be attributed to the fact that people expect these emails and are eager to get an updates on their order.
An easy way to get started is by offering your new customers a time-sensitive deal on product related to what they ordered.
Klaviyo wrote some more ideas of how to increase revenue through Thank You emails
Top Tip : Now that you’ve got your customer’s email address you can add them to a Facebook Custom Audience and show them the same offer on Facebook as you did in the email.
Build Excitement through “Fulfilled Order” emails
Remember how we mentioned that customers go through a series of emotions?
Here’s your chance to tap into a powerful one – expectation
When we make a purchase we want to be re-assured that we made a good decision.
After you mark an order as ‘fulfilled’ setup an automated email that not only informs of pending delivery but builds the expectation of the product
Put simply –> Send them an email with reviews or testimonies from other customers who bought the same product.
This will reassure them and get them excited for the product.
Excitement helps experiences stick in your mind
Remember – Our job is to build excitement, calm fears and heighten expectation.
Customer Survey Emails
Honest customer feedback is truly worth it’s weight in gold
It helps us improve our products and services to further increase our Customer’s Lifetime Value
Jilt.com wrote a comprehensive articles on Customer Surveys on how best to select actionable questions and structure the survey to get the most actionable insights from each participant
Simple create a new flow or add an email to an existing flow that directs the customer to your Survey Form
There’s a bunch of different services to create Surveys; some paid, others free
- Google Forms
- Gravity Forms (WordPress)
- Ninja Forms (WordPress)
Regardless of which service you use make sure that the information that you will receive will be actionable and help you provide more value to your customers.
These could be used in 2 different ways; either as an on-going incentive or as a time-limited campaign
The concept is that when a customer makes a purchase you send them a unique discount code of their next purchase.
The “Flows” functionality in Klaviyo make this very easy. Create a Flow that says once a customer’s order has been fulfilled then send an email sequence.
It’s important to note that the type and level of discount that works best will be determined primarily by your business.
Remember –Generally speaking, offering a discount to get a customer back will always be more profitable than by getting a new customer
Win back Series
The goal of Win-Back Series is to make sure your customers don’t lapse.
This is incredibly important as part of your objective to increase your Customer’s Lifetime Value (CLV)
Before we get started there’s a few pieces of data you need to get together
- Time to 2nd Purchase (T2P) – On average how long does it take for a customer to come back to make a 2nd purchase?
- What is the longest T2P in your database?
This helps us in 2 ways
- We know when to expect a repeat purchase
- We know that the chance of a repeat purchase drastically reduces after a customer exceeds the longest T2P
Now the action plan
Setup 2 automated segments in your customer database
- Segment #1 – Last purchase date was between the Average T2P and the Longest T2P. For example “Last Purchase Date between 30-45 days ago”
- Segment #2 – Last purchase date was greater than the Longest T2P
Create an email sequence for Segment #1 asking how they’re getting on, would they a ‘top-up’ of their
Transition this into discount codes, increasing as time goes by
If/When the customer enters into Segment #2 we know that the chance of them buying again is becoming smaller and smaller.
Hit them with the biggest discount you can afford.
Read “The Anatomy of the Perfect Win-Back campaign” for me details on how to correctly segment and roll this out
Remember – Chances are that this will still make you more money than acquiring a new customer
Sunset Dis-engaged Subscribers
It’s really important to keep your email database clean and maintained and this flow directly follows your Win-Back Series
You’ll receive clearer feedback on what works for your subscribers, increase deliverability and save you money if you pay by amount of subscribers
The headline is – don’t keep people on your list if they have shown zero interest in your brand.
Klaviyo has written a great article on how to correctly implement a Sunset campaign
If people have failed to engage in your Win-Back Series or haven’t interacted with any email it’s time to add them to our Sunset Series
Create a Segment for people who haven’t opened or clicked the last 10 emails they’ve recieved
You can include catchy titles such as We Miss You that progress to “Your Account Will Be Removed”
And if it gets to this point remove or archive them
Set up a loyalty program
We’re a big fan of Yotpo (they handle customer reviews) and Swell (Yotpo’s loyalty program)
Their headline on their “Customer Loyalty Playbook” is
“In the next era of eCommerce, you have two options: lose your hard-earned customers to the competition, or invest in building a brand that customers truly love.”
Couldn’t have put it better ourselves!
Think of loyalty as the points you get at the supermarket when you make a purchase. When you have enough you can trade them in for discounts on food / petrol etc
eCommerce loyalty is the same except that it allows us to engage with our customers in a multitude of different
Yotpo’s “Customer Loyalty Playbook” really does a good job so dig into the guide and see what can be done to increase their engagement with your brand.
Wrap up the article
Did you see – Proven Strategies for Increasing Average Order Value
What would happen to your business if every customer spent 10% more per order?
Individually it might not equate to much but over the long-term it helps drive growth and profitability
Try one of these proven strategies for Increasing Average Order Value