Retention Rate is one of the top metrics for DTC website owner. Acquiring a new customer is always a challenging and expensive task for any DTC business owner. In addition, Retention brings customer to buy same or other product from website with spending extra dollars.
With retention, DTC business owners can bring a trust badge for customer and increase lifetime value of any consumer. Further, Retention also build customer loyalty and increase NPS of your business.
Let us discuss all the term discuss in last two paragraph to understand how you can increase retention rate of your website.
Retention Rate
Customer retention rate is the percentage of people who make repeat purchases from your ecommerce store. For instance, If you sell to 5000 people each month and 1500 people return to make another purchase at some point in the next year, for example, your customer retention rate would be 30%
Acquisition Cost
The customer acquisition cost formula can be calculated by dividing your sales and marketing expenses by the number of your new customer. Your sales and marketing costs including your ad spend, any subscriptions that you use for marketing purposes, and staff and agency costs.
Customer Lifetime Value
Customer lifetime value is the total revenue you as an business earn from a customer over specific time period . Most importantly It is a metric to check loyalty and the viability of a brand. It takes up all the orders they have placed in specific period.
Net Promoter Score (NPS)
Net Promoter Score (NPS) is a key metric for your eCommerce business that shows you how many of your customers are willing to recommend your products or services to other people. Businesses use NPS to measure customer satisfaction and loyalty.
3 Best Method to Increase your Retention Rate on DTC Shopify Website
- Use Subscription Model
- Drip Email Marketing
- WhatsApp Marketing
Use Subscription Model
If your business have product in FMCG, Personal Care or consumer product, always work on subscription model. It increase the customer lifetime value and retain a user for specific period of time.
This model give a consumer a trustful delivery and convenient shopping experience. You can use app like –
Drip Email Marketing
A drip campaign is a series of automated emails sent to people who take a specific action on your website. However you can choose number of emails to be send and time period of the emails.
Drip Campaign work best with the journey mapping of the user. It increase average session duration of audience, and upsell of the product.
WhatsApp Marketing
A WhatsApp Marketing is a series of automated WhatsApp messages sent to people who are in the audience list.
In India, WhatsApp can be the best channel to increase retention rate of the website. With WhatsApp flow one can easily target a repeat customer. It can be useful for same product sell, up-sell and cross-sell of the products
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