Regardless of your mix, these tactics depend telegram database on effective eCommerce behavioral segmentation.
Above, Drunk Elephant uses a content personalization tactic of showing free shipping with a price hurdle to specific segments.
A Few Customer Retention Statistics
During research for this article, I came across an in-depth review on customer loyalty programs by Deloitte.
I found the results of their study telling.
It's obvious that customer loyalty depends on more than just financial incentives.
It is part brand. It is part experience. Above all, it is a big dose of relationship through consistent communication, influenced by understanding who the customer is.
Honestly, it is difficult to talk about it without a detailed case study. Which is why I chose to break down a company whose business model depends on loyal customers, repeat business, and customer retention: e.l.f. Cosmetics.
Case Study: How e.l.f. Cosmetics Creates Loyalty with Customer Retention Strategies
I want to illustrate a developed customer retention strategy by breaking down e.l.f. Cosmetics.
e.l.f. Cosmetics generated over 265MM last year. Their core offerings are trend-inspired products across "eyes, lips, and face and tools...".
Modeled after fast-fashion brands, e.l.f. creates value by creating trend products at significantly lower prices. However, this type of strategy demands high customer retention to work.
How e.l.f. Manages After-Sale Customer Service
Mistakes will happen.
Successful e-Commerce stores address mistakes head-on, and use customer service as an opportunity to maximize future sales.
As the study above showed, 41% say directly that having great customer service is necessary for brand loyalty.
Customer Retention Tactic 1: Leveraging Transactional Emails to Generate Referrals
Double sided referrals are increasingly popular.
e.l.f. takes advantage of timing to maximize their standard referral bonuses.
Understanding that recent purchases are a key leading indicator for future purchases, they embed their referral incentive in the very first transactional email they send.