An Essential Guide to Preventing One-Timers from Churning – Part II
Converting one-timers to active customers can generate much value for your brand and increase ROI on the cost of acquisition. Here's the second part of this mini-series (more available to download)
It makes sense to look at and try out multiple CRM strategies to stop your one-timers, or first-time purchasers, from churning. When treated right and nurtured properly, this segment of customers can actually bring significant revenue to your business in the long run.
By analyzing customer data, you have the power to communicate with clients in a highly relevant and hyper-personalized manner while increasing customer loyalty and the likelihood of subsequent purchases.
You can do so by following some of the best-practices-based methodologies at Optimove. The best-practice we focused on in the first part of this mini-series was on how to leverage first-order data to reduce the number of one-timers who churn.
Today we will turn our focus to powering repeat purchases with product return data. And we will show you how this methodology can be easily implemented using Optimove.
How to Power Repeat Purchases with Product Return Data
Returns aren’t always a cause for alarm and don’t always result in churn. While a customer who returns their entire order may be signaling that they had a negative experience with your brand in one way or another, customers who make partial returns often indicate that they’re strongly engaged.
As seen in the chart below, customers who have a low and mid return ratio have a higher average future value than customers with no returns:
With Optimove, marketers used return data to create different campaigns to be sent to different segments of new customers based on their return ratio. To do so, they created a customer attribute that would calculate the ratio of the return value from the total order value.
With each customer having their unique ratio, marketers segmented new purchasers into three tiers, creating separate strategies for each. See below:
A similar campaign type can easily be re-created for any type of business using this flow-chart:
Converting one-timers to active customers can generate a lot of value for your brand and increase the ROI on the cost of acquisition.
Optimove allows you to easily access insightful and actionable data as early as your customer’s first order so that you can take action exactly when needed.
Learn more about how Optimove can help turn your one-timers into repeat buyers by accessing all four methodologies in the full use case.