Retain or Perish: Why brands can’t ignore the importance of customer retention anymore

Why is customer retention critical to your brand’s success? Simply put – the cost of acquiring new customers is much higher than retaining existing ones. Furthermore, customer retention increases your customers’ lifetime value and boosts your revenue.

Now that we know why retention is important, let’s talk about its growing significance in today’s digital world.

First-party data matters more now than ever 

If you’ve been working within the social media landscape, you are undoubtedly familiar with constant platform changes and updates. Changes such as hindered tracking capabilities owing to Apple’s privacy update have resulted in reduced insight into customer behavior via limitations to tracking – which directly impacts your marketing costs. Some advertisers are reporting up to 30% increases in their CAC (customer acquisition cost), and 20% reductions in their ROAS (return on ad spend). 

While It may be intimidating to understand how to best leverage the wealth of customer data you have access to, consider the opportunity this unique first-party data provides. Work towards bringing existing customers back to you courtesy of a personalized and well-thought-out post-purchase journey. They mean it when they say data is the new oil!

Retention is a great way to control your costs 

If you’re a business owner, cost control is of paramount importance. Here are a few statistics to get you thinking: 

  • Customer retention is 5- 25 times¹ cheaper than customer acquisition. (HBR)
  • ROI: A 5% increase in customer retention can increase company revenue by 25-95%. (Hubspot)
  • The Pareto Principle shows that 80% of your profits come from just 20% of customers (Forbes)

Retention isn’t rocket science

Retention is nothing to break your head over! You can start with something as simple as sending a WhatsApp message or email to your most loyal customers. BUT you should prioritize retention as a pivotal marketing goal & function soon after you experiment! Let’s make it easy for you… 

Here are a few ways you can begin prioritizing retention as part of your business strategy:


1. Love your customers, if you want them to love you 🙂 


Brands often overlook the core principle of reciprocity that the human race is based on. As D2C brands explode across industries, there are an increasing number of options for customers to choose from. A crucial way to stand out from the competition is the development of a personalized post-purchase customer journey. Show your customers you care with small gestures of appreciation and gratitude.

Here are some simple ways you can delight your customers post-purchase:

  • Send a personalized note with their first order welcoming them to your brand community 
  • Send them complimentary samples of your new products and ask for their feedback 
  • Collect information on their birthdays and send them a special wish or surprise
  • Set up an easy to follow loyalty program where customers benefit from repeat ordering


 2. Talk to your customers when and where they are comfortable 


Email open rates and click-through rates are witnessing a drop across industries, so why not consider including channels such as WhatsApp? The tech world has a range of wonderful WhatsApp integrations that can help you nurture customers where they are spending their time. 

3. Leverage your data to personalize your customers’ experience 


Set aside resources and prioritize investment in technology that helps with data segmentation and insights. Use these data insights to guide your retention strategy and create personalized messaging.

If you notice a customer hasn’t ordered in a while, go through their order and notice what they usually like. Reach out with that! 

Are repeat orders more likely to come in on weekends? Schedule email and WhatsApp communication for those days!

4. Craft your post-purchase journey while creating your website 


While you prioritize getting a new customer, your customer would love it if you prioritize them. Consider key moments in the post-purchase journey such as 

– Order confirmation

– Order tracking

– Reviews and feedback

5. Don’t abandon your abandoned carts


A customer who has abandoned their cart was clearly on the cusp of buying your product(s). It’s crucial to reach out to them to gently nudge them along on their purchase journey. Platforms like Shopify provide great insight into abandoned carts. Giving you details that boil down to address and phone number.

6. Innovate offerings with your customers’ needs in mind


Leverage sales data to create exciting and bundles & kits for customers so buying becomes easier and they feel you’re acknowledging their needs

Shopify, for example, provides great data and insight into “products bought together”. If you sell cooking oil, consider creating a size that makes it easy for the customer to buy once a month on a subscription!

7. Let your customers be a part of some decisions


Modern-day customers could be your next investors! (Take Nykaa for example). Allow them to participate in decisions on new products and innovation. When customers feel you value their opinion, they’ll feel more invested and are more likely to buy.

8. Don’t overdo it


While retention is important, remember no one wants to be spammed. Make sure to respect your audience’s time and space and don’t over-communicate or bombard them with irrelevant information to the point where you become an annoyance.

It’s important to keep in mind that retained customers are more likely to engage in word-of-mouth marketing or become brand ambassadors. That means to treat and delight your customers well enough and they will do your marketing for you! Need we say more about why a sound retention strategy is so critical for your business?

Get in touch with us at to craft the perfect retention strategy for your customers!




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