Steal This Brand's Formula to Build Customer Loyalty

Welcome to this issue of The DTC Insider newsletter. ??

We'll send you weekly emails, every Wednesday, trying our best to deliver great value to your inbox.

In this newsletter, you'll find:

?? Will Your Marketing Efforts Pay Off this Holiday Season?

?? Steal This Brand's Formula to Build Customer Loyalty

?? Getting Ready for Black Friday

Will Your Marketing Efforts Pay Off this Holiday Season?

Advertisers want to make the most out of this holiday season.

Yet many of them don't know whether they are "winning" or not.

So, what can they do about it? ??

It's always a good practice to look at what happened in previous years.

What's the best way to do that on Shopify?

The Customer Cohort Analysis.

What is it about?

It's a chart that shows how your customers have behaved over time since their first order.

You can see:

?? How much they spent on previous holiday seasons and in the following months

?? Customer retention rate over time

?????? Number of customers over time

?? Net and gross sales

?? AOV

How does this help you make better decisions?

Well, with the above-mentioned information, you can:

?? Predict how your customers will behave in this BFCM if you offer similar deals

?? Brainstorm ideas to improve last year's performance (ie. increase AOV by offering higher-ticket deals or decrease the time between purchases)

?? You can filter the data by channel and product name, among other options

Understanding these metrics will help you make better decisions.

Such as spending a certain % of your estimated revenue.

Working on decreasing the time between purchases.

And many more.

TL;DR:

?? Look at Shopify's Customer Cohort Analysis report

?? Check how your customers have behaved since the last BFCM

?? Identify winning strategies & goals for this BFCM

Steal This Brand's Formula to Build Customer Loyalty

By Janis Thomas , Managing Director at Look Fabulous Forever .

Loyalty is very important to us at Look Fabulous Forever.

Typically 80% of our revenue comes from existing customers.

Over half of our customers make a second purchase.

If we can get them past that point, they typically go on to buy from us another 5 times.

We do 4 things to build loyalty:

Content:

Content is our superpower.

Our customers are mostly women in their 60s & 70s.

Mainstream beauty brands aren’t designing products that work for women post-menopause.

Every one of our makeup and skincare products is created to solve the specific issue that older women face.

We have to take our customers on a journey that shows them how our products are different and demonstrate how to use them.

We share useful and helpful content to build customers’ trust and confidence, so they have a brilliant experience with us long before they make their first purchase.

Personalisation:

We have tools to give customers personalised recommendations for the products and specific shades that will be most flattering to them.

Given we have thousands of hours of content, it’s really important that we serve what’s relevant to each specific consumer.

For example, if you buy a product from us, we’ll follow up with the specific tutorial video you need to get the most from that product.

Customers are more likely to use that product in the best way, buy it again and trust us when they’re ready to try something else.

Community:

We have around 9,000 members in our private Facebook group.

We initially started it to provide support during COVID.

Most of our customers are retired, so many felt isolated from friends and family.

It was a huge success, with customers sharing their lives, their feelings and their challenges.

While they do discuss our products sometimes, they talk about everything from gardens to grandchildren.

We still see around 90% of members active in the group each month and many meet regularly in person now.

The community gives our customers a sense of belonging when they often feel stereotyped and overlooked by wider society.

Listening:

Continuous feedback from our customers plays a huge part in our success.

As well as our community, social listening and feedback from our customer care team, we also regularly ask our customers for feedback.

We run a quarterly survey which goes to everyone who has bought in that period.

We regularly benchmark metrics like NPS score, the level of customers who know about our generous returns policy, their product and delivery experience, etc.

We also get feedback about every new product we’re considering.

So we know how much interest there is, the price customers are willing to pay, what they need from it and even what content they’d like to see.

This ensures we’re formulating products our customers want and need.

We share all this data across the organisation and bring everyone together to discuss their perspectives and ideas.

We believe this focus on content, personalisation, community and listening is vital to our success.

Getting Ready for Black Friday

We're only a few weeks away from Black Friday!

That's why in this episode, Florencia Kolyvakis and Brian Roisentul at BSR Digital discuss how brands can get ready.

In this episode of?The DTC Insider ?podcast, we discussed:

?? Meta's Budget Scheduling Feature

?? Shopify Report on Holiday Shoppers

?? Holiday Shopper Purchase Timing and Spending Habits

?? Q4 Planning

?? Importance of 90-Day Roadmaps

?? Planning Budgets and Funnels

?? Tune in to our latest episode: https://thedtcinsider.com/