So many high-growth startups focus only on acquisition numbers.
But increasing customer retention rates by 5% can increase profits by 25-95%!
THREAD: 15 customer retention principles to boost your business
But increasing customer retention rates by 5% can increase profits by 25-95%!
THREAD: 15 customer retention principles to boost your business
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
Aslo 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.
Aslo 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/ Brand vs. Performance Marketing
There's a clear tradeoff between these two options.
Your retention efforts will be vastly different depending on the choice.
It's crucial to find the right balance.
Here's how you do that:
There's a clear tradeoff between these two options.
Your retention efforts will be vastly different depending on the choice.
It's crucial to find the right balance.
Here's how you do that:
https://twitter.com/wes_kao/status/1454463138540163077?s=20
4/ 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 $$$
Product A = 100 new customers
Product B = 50 new customers
A = 30% retention rate
B = 80% retention rate
A = 30 returning customers
B = 40 returning customers (WIN)
This happens more than you think.
Dig into the data. Factor in $$$
5/ 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.
6/ 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.
7/ 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
8/ Sell Transformations, Not Products
This is true for new and returning customers.
When going for that repeat order, remind customers of the transformation they're getting by ordering your product.
This is true for new and returning customers.
When going for that repeat order, remind customers of the transformation they're getting by ordering your product.
https://twitter.com/alexgarcia_atx/status/1468037936973242372?s=20
9/ 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.
10/ Track Your NPS
NPS = Net Promoter Score
Measures how likely customers are to recommend your company to others.
-100-0 = Needs Improvement
1-29 = Good
30-70 = Great
71-100 = Excellent
Scores can be broken out by category (e.g. Shipping).
You'll notice trends very fast.
NPS = Net Promoter Score
Measures how likely customers are to recommend your company to others.
-100-0 = Needs Improvement
1-29 = Good
30-70 = Great
71-100 = Excellent
Scores can be broken out by category (e.g. Shipping).
You'll notice trends very fast.
11/ Automate CRM Flows
Identify the highest impact lifecycle events.
Automate a campaign sequence 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 a campaign sequence 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.
12/ 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]." ✅
13/ 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.
Look for BIG wins 👇
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.
Look for BIG wins 👇
https://twitter.com/bbourque/status/1474363039281385473?s=20
14/ 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
15/ 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 ✅
If you enjoyed this thread, give it a retweet so others can improve their customer retention efforts!
And follow me @joe_portsmouth
I write 1-2 threads weekly on sports, business, and life.
Here's another one you might like:
And follow me @joe_portsmouth
I write 1-2 threads weekly on sports, business, and life.
Here's another one you might like:
https://twitter.com/joe_portsmouth/status/1456983969975570432
TL;DR
1/ Choose Your Welcome Offer Wisely
2/ The 80/20 Rule
3/ Brand vs. Performance Marketing
4/ Don't Get Fooled By Acquisition Stats
5/ Segment By First Order
6/ Have Multiple Touchpoints
7/ Reduce Friction For Repurchase
8/ Sell Transformations, Not Products
1/ Choose Your Welcome Offer Wisely
2/ The 80/20 Rule
3/ Brand vs. Performance Marketing
4/ Don't Get Fooled By Acquisition Stats
5/ Segment By First Order
6/ Have Multiple Touchpoints
7/ Reduce Friction For Repurchase
8/ Sell Transformations, Not Products
TL;DR (cont.)
9/ Service That Feels Like Family
10/ Track Your NPS
11/ Automate CRM Flows
12/ Write To One Person
13/ Test. Test. Test.
14/ Know Your Customer's Lifecycle
15/ Upsell Little By Little
9/ Service That Feels Like Family
10/ Track Your NPS
11/ Automate CRM Flows
12/ Write To One Person
13/ Test. Test. Test.
14/ Know Your Customer's Lifecycle
15/ Upsell Little By Little
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