Customer retention is a critical factor for sustainable growth. While acquiring new customers is important, retaining existing ones often proves more cost-effective and profitable. That’s why we’ve recently launched powerful new features, designed to help consumer brands level up their retention marketing strategies.
Retention Matters, But It’s Not Easy
Customer retention is the lifeblood of successful brands. Returning customers not only contribute to consistent revenue but also tend to have higher average order values and act as brand advocates. However, keeping customers engaged and coming back for more can be challenging, especially without the right data and insights.
This is where Daasity's latest update comes into play, offering brands new insights to help them analyze, forecast, and act on customer retention data.
Introducing Actual vs. Forecast Comparison View
Daasity's new Actual vs. Forecast Comparison View, available in the Retention dashboard, provides a visual representation of how different customer segments are performing compared to expectations.
This view, along with new retention metrics, allows marketers and other business users to quickly identify which segments are loyal or churning, enabling them to make data-driven decisions to optimize their retention strategies.
It shows you key metrics for each segment, including:
- Total gross sales
- Customer count
- Customer orders
- Percent of segment ordering
- Average order value
- Units per transaction
- Average unit revenue
For example, here you can see that new customers make up 25% of total sales, amounting to approx. $68 in revenue, and with an AOV of just over $49.
You can also dig into other segments, like churning and lapsing high-value customers, and see how they are performing compared with the forecast.
Turning Insights into Action
The retention forecast is useful, but its real power lies in how you can use these insights to drive your retention strategies. By identifying which segments are underperforming compared to forecasts, you're equipped to take targeted action and potentially turn the tide.
Here are some ways you can leverage this data:
Targeted Campaigns with Daasity Audiences
One effective option is to use Daasity Audiences in conjunction with your retention data. For example, if you notice your high-value customer segment is underperforming, you could create a targeted audience within the Daasity platform. This audience could then be used to launch a social media campaign, perhaps offering these customers a gift with purchase or exclusive discounts.
Personalized Communication
Understanding segment performance allows you to tailor your messaging. For segments at risk of churn, you might craft emails or SMS messages that speak directly to their interests or past purchasing behavior, aiming to re-engage them with your brand.
Product Recommendations
Use the segment data to inform your product recommendations. If a particular segment is falling behind forecast, consider which products have historically appealed to this group and highlight these in your communications.
Loyalty Program Adjustments
Your retention data might suggest it's time to tweak your loyalty program. Perhaps certain segments need extra incentives to make their next purchase. You could consider offering bonus points or exclusive rewards to boost engagement.
Customer Service Focus
For high-value segments that are underperforming, you might decide to provide extra attention from your customer service team. This could involve proactive outreach to ensure these customers are satisfied and to address any potential issues.
Content Strategy
Use your retention insights to guide your content strategy. If certain segments are lagging, consider creating blog posts, videos, or social media content that specifically addresses their interests or pain points.
The goal is to use this data to make informed decisions that positively impact your customer retention. By understanding how different segments are performing against forecasts, you can allocate your resources more effectively, focusing your efforts where they're most needed.
Get the Retention Forecast Now
Retention metrics and forecasts can help you understand your customers on a deeper level and drive sustainable growth for your brand. By comparing actual performance against forecasts, you'll gain invaluable insights into customer behavior, allowing you to tailor your retention strategies more effectively.
Here’s how to get your hands on the forecast.
If you're a Growth merchant or an Enterprise merchant who joined after September 2023, you're all set! The new visualization should already be available in your Retention dashboard, and the new metrics will be present in your Customer Retention Performance MTD explore.
Legacy Enterprise merchants will need to follow three simple steps. Check our knowledge base article for instructions.
Not a customer yet?
Get in touch with our team today to learn more about how Daasity can help you unlock the full potential of your customer data. With the right insights at your fingertips, you can create targeted, effective retention (and acquisition) strategies to drive long-term customer loyalty and business growth.
