Why should DTC Brands improve their customer retention strategies during Q4

Q4 is mostly about working on warm traffic and on existing customers and when you’re a DTC this becomes even more true. Improve your customer retention with these customer retention strategies and become the first brand to pop to your customer’s mind for their 2022 holiday shopping!
DTC brands customer retention strategies for Q4

Did you know that for most DTC Brands, 50% to 80% of their customers purchase once and never again? Sounds dramatic, indeed, and definitely calls for customer retention strategies to be applied.
But what if I told you that that 41% of an average eCom store’s revenue is created by only 8% of its customers?

The proportions of the bags of money you’re probably leaving on the table start getting clearer. 

Now let me remind you of how we are progressively approaching Q4, by far the most profitable trimester of the year for any eCom Business.
Appointments like Black Friday and Cyber Monday, Single’s Day, Christmas, Free Shipping Day are only a few to mention!

Almost all the marketing of this period is directed to existing customers or people who already know your brand, in other words worm to boiling hot traffic! For this reason, you want to create separate strategies to retarget potential new customers on one side and to get existing customers to repeat purchase on the other. 

Now you now why DTC brands ought to improve their customer retention strategies during Q4 and we are here to give you some tactics! 

  • Number one are the obvious ones: and we’ll add that if you are marketing on DTC channels and you lack a strategy on these fronts… well… close the window and rush to study the basics of DTC marketing! We are talking about Community Building, Excellent Customer Service, Creating a Loyalty Program and reserving a privileged space for UGC (User Generated Content) within your marketing tactics.
    As we said, DTC Brand owners should breathe the aforementioned.

  • Encourage your customers to write reviews. Make sure to specify that honest reviews is what you’re looking for and interact with them after publication to show your appreciation. DTC is all about individual relationship and in an environment where customers aren’t valued as much as they expect or wish, this is a practice that will make your brand stand out and increase its positive perception in terms of transparency and care. When reaching out to your customers, stress out the fact that you want a truthful review even if this means including negative aspects. While this will testify how you actually put in practice your brand’s value, it will also make your reviews sound more credible and stand apart from the ocean of fake reviews out there! Mind you: viewers are getting better and better at distinguishing the good ones from the fake ones.
  • Offer coupons and discounts. Dosage here is everything, you don’t want your customer to become addicted to discounts and to shop only when they can save money or get something extra.
    At the same time you are looking to lower that churn rate.
    PRO TIP: you don’t need to wait for Q4’s heat to release a coupon. You can rather give them a special reason to purchase now and to want to come back later… maybe for holiday shopping!
    Justify the discount or the coupon with an intimate special occasion like “it’s our anniversary” or “it’s your 9th month with us and we want to award you with a special coupon, here is why 9 months-old customers are so special to us”. Work on the storytelling, make it as clear as possible that the occasion will not repeat itself for a long time.
  • The magic of personalization. IF you really are a DTC brand, then you know that intimate relationship is everything and giving a tailored experience will contribute to that level of intimacy that a DTC brand is required to give. However, apparently many brands aren’t fully aware of such thing since 33% of customers abandon a DTC brand because of lack of personalization. Make them feel like you know them, call them by name in your emails but don’t stop there!
    Collect and study data about them, give them product recommendations and promotions they actually need. Build a loyalty program, create surveys, and build a segmented communication  strategy in which you describe use cases they can resonate with. In other words feed the dream! Not only your customer retention rates, but your engagement rates will thank you as well.
  • Free returns. This is the time to check out your returns policy. In fact 84% of customers are not going to purchase again from your business if they have encountered too many friction points during their return experience, no matter what, not even if the above points from 1 to 4 are impeccably executed! Returns are part of the life of a business so you better have a good policy in place in you don’t want to loose the loyalty of your customers. A streamlined and transparent returns policy is a boost in terms of credibility and perceived fairness and will get your customer to come back. Implementing free returns, an easy to find and to read return policy as well as preferring cash refunds rather that resends or exchanges integrate an actual solid return practice. Obviously, such conditions must be supported by a logistics company able to handle reverse logistics not as an exception, but as part of the order fulfillment process. Thanks to Bordrl3ss handling returns will be headache-free both for you and your customers and that’s only one aspect of the benefits. Click HERE to learn more about why Brands that are scaling in Europe are closing the technology and the delivery system of Borderl3ss. 
Robin Calandri

Robin Calandri

DTC Fulfillment Blog

Find all the information you need to optimize your European fulfillment operations. 

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