Increase profits for your business by 25-95% with these 12 proven customer retention principles:
1/ Choose Your Welcome Offer Wisely
Less generous offer:
• Fewer customers ❌
• Higher quality ✅
• Higher retention ✅
Generous offer:
• More customers ✅
• Lower quality ❌
• Lower retention ❌
Use an offer that strikes an optimal balance between quantity vs quality.
Less generous offer:
• Fewer customers ❌
• Higher quality ✅
• Higher retention ✅
Generous offer:
• More customers ✅
• Lower quality ❌
• Lower retention ❌
Use an offer that strikes an optimal balance between quantity vs quality.
2/ The 80/20 Rule
Also known as the Pareto Principle.
Suggests that roughly:
20% of your customers will make up 80% of your repeat revenue.
I have found this to be mostly true at every company I've ever worked for.
Know who your 20% are and treat them like royalty.
Also known as the Pareto Principle.
Suggests that roughly:
20% of your customers will make up 80% of your repeat revenue.
I have found this to be mostly true at every company I've ever worked for.
Know who your 20% are and treat them like royalty.
3/ Don't Get Fooled By Acquisition Stats
Product A = 100 new customers
Product B = 50 new customers
A = 30% retention rate
B = 80% retention rate
A = 30 returning customers
B = 40 returning customers (WIN)
This happens more than you think.
Dig into the data. Factor in $$$
Product A = 100 new customers
Product B = 50 new customers
A = 30% retention rate
B = 80% retention rate
A = 30 returning customers
B = 40 returning customers (WIN)
This happens more than you think.
Dig into the data. Factor in $$$
4/ Segment By First Order
My favorite is splitting by AOV.
High AOV = treat like repeat customers.
Low AOV = need more nurturing.
Depending on your business, another segment option is by hero SKU.
Hero 1 vs. Hero 2
This is more useful when your products solve unique issues.
My favorite is splitting by AOV.
High AOV = treat like repeat customers.
Low AOV = need more nurturing.
Depending on your business, another segment option is by hero SKU.
Hero 1 vs. Hero 2
This is more useful when your products solve unique issues.
5/ Have Multiple Touchpoints
Meet your customers where they are.
• SMS
• Email
• Direct Mail
• Onsite Popups
• In-App Messaging
• Push Notifications
The more channels you have at your disposal, the better your chance of getting that repeat order.
Meet your customers where they are.
• SMS
• Direct Mail
• Onsite Popups
• In-App Messaging
• Push Notifications
The more channels you have at your disposal, the better your chance of getting that repeat order.
6/ Reduce Friction For Repurchase
The order process for a repeat purchase should be as smooth as possible.
With the tech available today, it's never been easier to accomplish that.
• Subscription
• Text to reorder
• One-click checkout
The order process for a repeat purchase should be as smooth as possible.
With the tech available today, it's never been easier to accomplish that.
• Subscription
• Text to reorder
• One-click checkout
7/ Service That Feels Like Family
We've all waited days for an email reply from customer support.
Don't be that company.
And if an issue can be resolved for $50 or less, take care of it no questions asked (within reason).
Service like this builds long-term loyalty.
We've all waited days for an email reply from customer support.
Don't be that company.
And if an issue can be resolved for $50 or less, take care of it no questions asked (within reason).
Service like this builds long-term loyalty.
8/ Automate Email Flows
Identify the highest impact lifecycle events.
Automate email campaigns for each of them.
Cross-Sell Example:
• Every customer that bought X should also buy Y.
Win-Back Example:
• Someone bought X but has not purchased again in the last Y days.
Identify the highest impact lifecycle events.
Automate email campaigns for each of them.
Cross-Sell Example:
• Every customer that bought X should also buy Y.
Win-Back Example:
• Someone bought X but has not purchased again in the last Y days.
9/ Write To One Person
Your customer wants to feel like you're messaging them on a 1-to-1 basis.
NOT to be treated like one of many.
"Try our new product!" ❌
"Try our new product, Joe! It will go great with your [name of previously purchased product]." ✅
Your customer wants to feel like you're messaging them on a 1-to-1 basis.
NOT to be treated like one of many.
"Try our new product!" ❌
"Try our new product, Joe! It will go great with your [name of previously purchased product]." ✅
10/ Test. Test. Test.
If you're not testing, you're not trying.
Every offer.
Every email.
Every landing page.
Is an opportunity to learn more about your customers.
But don't just test to test.
If you're not testing, you're not trying.
Every offer.
Every email.
Every landing page.
Is an opportunity to learn more about your customers.
But don't just test to test.
11/ Know Your Customer's Lifecycle
The right message at the right time is nearly unbeatable.
Don't bucket everyone into the same average repurchase time.
Dig deeper.
Look at repurchase cycle by:
• Product purchased
• # of products purchased
• Individual purchase history
The right message at the right time is nearly unbeatable.
Don't bucket everyone into the same average repurchase time.
Dig deeper.
Look at repurchase cycle by:
• Product purchased
• # of products purchased
• Individual purchase history
12/ Upsell Little By Little
Upselling is a long game.
Don't go for the home run right out of the gate - it will feel like a hard sell.
$20 → $80 ❌
Instead, ease your customers into new tiers gradually over time.
$20 → $30 → $50 ✅
Upselling is a long game.
Don't go for the home run right out of the gate - it will feel like a hard sell.
$20 → $80 ❌
Instead, ease your customers into new tiers gradually over time.
$20 → $30 → $50 ✅
Thanks for reading!
If you enjoyed this, follow me @joe_portsmouth for more content like this.
And check out my free swipe file with 49+ resources on:
→ Email Marketing
→ Customer Retention
→ Copywriting Best Practices
Swipe for free here:
joe.beehiiv.com
If you enjoyed this, follow me @joe_portsmouth for more content like this.
And check out my free swipe file with 49+ resources on:
→ Email Marketing
→ Customer Retention
→ Copywriting Best Practices
Swipe for free here:
joe.beehiiv.com
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