Customer acquisition, of course, is the focus of many startups, where they look to build an audience for them. However, once that is achieved, their minds naturally turn to their retention. Mori Ivanov, founder and CEO of Metrilo, an analysis and marketing platform for e-commerce brands, explains how DTCs can refine their retention strategies.
What are the biggest challenges facing DTCs and how can they be overcome?
What I see is that DTC tags do not have problems attracting customers because they are interesting and people want to try new things. The problem comes after the first purchase when many brands adopt the same approach as other traditional e-commerce stores: lots of spam, counterfeit sales, limited time offers, and endless targeting.
Is retaining more important than acquiring a new customer then?
Yes, if the brand is intended to stay in business in the long term, it must become profitable. It is not easy for DTC brands to raise capital as it was for SaaS. VCs tend to work with the same huge valuations that tech companies are accustomed to, which builds high profit expectations and shifts brand focus and identity. Those that decide to grow without funding, need to find sustainable revenue early on.
The most successful brands we have worked with in Metrilo Realizing their limits and focusing on profitability rather than developing their customer base. This gives them better margins, as selling to existing customers compensates for the initial acquisition cost, which is rising all the time. They are fully dedicated to their small target group and are trying to make the most of it rather than spread. This means more financial stability to reinvest in areas such as growth, new products and new markets.
Client retention should be the focus of the DTC. They can always bring in new customers, but without a strong base, it will not lead to growth, just a revolving door for one-time buyers.
In addition, regular clients serve as evidence of the concept, and will alert them if the trademark is applying for funding if they explore this method.
How can brands work to improve customer retention?
First, I'd like to analyze your retention levels and know which products, campaigns, and channels bring the most loyal shoppers, and then improve them to get more similar customers. You can also know your average time between requests, so you can send reminders via email in a timely manner without you pressing it.
If you monitor customer behavior over time, you'll be able to set their preferences for transactions and products, so using a simple tag you can send relevant offers to different segments of your customers. It's also important to treat loyal customers better with each new order they offer, with offers such as priority support, shipping, special deals, and early bird events to make them look forward to the next shopping experience.
Finally, it is always helpful to work according to the comments – good or bad do your best to talk to them, because this makes customers feel that they are part of the brand building, and will stay involved, even after a negative experience.
Can you give an example of a brand grown by keeping it? What did they do?
One of our greatest success stories has been Original cosmetics. They started with one product – natural deodorant in only three scents. From this, they have managed to get $ 100 million from P & G in less than three years and are now the best selling brand of Target's deodorant, with the expansion of body care products.
Its founder, Moez Ali, understands this Maintain customers Is crucial for a brand that relies on repeat sales. He created the customer experience that made people addicted to communication – everything from an unboxing experience, and even rearrangement reminders, was very impressive. Most importantly, he constantly asked customers' opinions about the product, and used these notes to improve the formula. People were happy to be part of the process, they tried the newer version and listened actively to the company. At the time the brand was sold, half of its revenue came from loyal customers, a huge reward for P & G.
How did Metrilo Native help grow?
Native designed their feedback loop with Metrilo, where they collected qualitative and quantitative data to help improve their products. They were also used Maintenance analysis On the platform to understand the consumer lifecycle and determine the best renewal times for different types of consumers. The customer database helped the team track its growing fan base and create insights for its active participation, such as the smell they like, the version they tried, and the number of times they need a new shipment. Finally, as a fast-moving business, Native needed a fast and reliable dashboard for key metrics to monitor overall performance while flying.
Moiz is now our product development consultant, and after the acquisition told us that he "uses Metrilo every day and can not build this company without your product." For me, he has achieved our best.
How does Metrilo make brand data usable?
Metrilo processes all marketing data and customers from trademark stores to useful reports designed for trademark owners. No useless stats, no setup report. Everything is ready to take a look and make your decision, be it an increase in your ad budget, drop the impact, send an email or stop selling. Metrilo also has a special track for visitors to the Web site, where we collect profiles with session procedures and order history for use in custom emails.
Metrilo is a growth tool for DTC brands. It provides reports on basic metrics, marketing control and product performance, customer insights and retail options, retention analysis, email functions, and feedback collection. All this is directed towards brands that want to understand and improve customers' journey, and to motivate loyalty through timely and timely communication.