Tag: loyalty

Using Recency and Frequency to measure customer loyalty

In Repeat Customer Insights there are a few insights you can pickup by comparing the Recency-Frequency (RF) Grids. The segments to the top right are the best for repeat customers, the ones to the bottom left are the worst. If segments to the right are increasing (higher Frequency), that’s a sign that new customers are …

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Spot customer acquisition issues with the Customer Grid and RFM

Comparing the Customer Grids in Repeat Customer Insights can help you spot customer acquisition issues. The New and Promising New segments include customers who have only purchased one time. Their main difference is how recently they purchased. Comparing them month-to-month, you’ll want to check their counts. If the counts are increasing, you’re acquiring more new …

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Discover if your customers are becoming more loyal over time

One question I hear a lot is: are customers becoming more loyal? Making that question easy to answer was the basis that drove the new Customer Grid compare I added to Repeat Customer Insights. Previously you’d need to consult a variety of metrics to measure loyalty. Repeat Purchase Rate for retention, customer counts to know …

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The costs of customer loyalty

The standard advice around customers is that it’s cheaper to convince an existing customer to buy again than to acquire a new customer. Like most standard advice, it’s true for some stores and false for others. You need to measure it to be sure. Loyalty and retention comes with associated costs. From the loyalty discounts …

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Send your customers a goodie package to boost customer retention

I had to upgrade one of my infrastructure services for Repeat Customer Insights. It out-grew the plan it was on. Instead of just locking me out or upgrading me automatically, their support reached out to me. We ended up having a conversation about trying to squeeze back into the old plan but I still couldn’t …

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Simple and honest loyalty offers can be effective

We’re members in a local store’s loyalty program. They sent out an email last week, it was short but it thanked us for supporting them during the pandemic and gave us a small coupon. Nothing groundbreaking or innovative. Just a reason for the email and a simple loyal customer offer. You don’t have to have …

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Communities can be a sharp knife, both useful and dangerous

Some industries foster communities. If you sell surfboards, blenders, or crafting tools, you already know your customers talk to each other. In these communities they share ideas, help each other, and recommend products and services. They also report on bad products and experiences. More and more communities are forming now as there is no technical …

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Too busy for customer retention

I heard from a Shopify store that they are too busy for customer retention because all their time is focused on customer acquisition. They didn’t realize that they were the ones creating the problem with their business. When you ignore customer retention, customers will leave. Some might stick around but those will be the minority. …

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Should you ever take 0 profit on orders to build customer loyalty?

I was thinking about something the other day. Is it ever worth taking zero profit on an order for a repeat customer? For a new customer it’s different (e.g. loss leader strategy). It’s riskier as you don’t know if they’ll reorder or have customer service issues that end up costing you. It can work, but it …

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