CRM Hack: How to Use “First Experience” Data to Improve Retention
As always, some perhaps “obvious” insights are too often going waisted by marketers. Here’s one helpful example you don’t want to miss out on
It may not come as a shock to you learning that our data shows a strong connection between the nature of the experience had with your brand early on – and the chances of them becoming a returning, more loyal customer.
A great experience usually leads to a better retention rate. And a poor one, to lower such rates. Make sense, right?
But what does come as a surprise to us here at Optimove time and again is how often marketing teams miss out on that insight and fail to act on what it tells them.
Because there is a simple, useful action item for you that just sits there behind that data, waiting for you to leverage it.
Watch the short video below for a quick micro-workshop that uses the example of new customers at an online betting operator. But smart marketers such as yourself, even if not in the gaming space, will for sure be able to use it for your industry as well easily.
(or, you can skip the video and read the textual explanation below)
How to Plan a Marketing Strategy Based on “New Customer Experience” Indicators?
When you get a new customer, you should have three immediate, main objectives:
- Reduce the number of “One Time” customers – meaning, getting them to buy with you again
- Increasing the value of their “basket” (or: deposit, in gaming)
- Increase the frequency in which they do business with your brand
Of course, all those objectives contribute to the one prominent Northern Star of CRM Marketing metrics: Customer Lifetime Value. And, of course, there’s a lot more that’s going into increasing your CLTV.
But here today, we focus on just this one aspect that’s often forgotten (especially for retail marketers) – and that’s the aforementioned “nature of the first experience.”
For gaming operators – where “bad,” “good,” and “great” experiences are defined by the ratio of “win” vs. “bet” amounts – the numbers couldn’t screen it any louder: the better the first experience is, the (sometimes MUCH) higher retention rate is.
Now, what could it potentially mean for you, and how can you leverage that sort of insight?
Well, if someone had a bad experience – you’re going to have to work a little harder to get them to stay/come back for more with you. Meaning, send them a better offer. On the other end of the spectrum, as retention rates for customers who had an amazing first experience are naturally high, your next communication could be more encouraging, personal, maybe with the kind of language that shows you’re happy for them and share their excitement – but does not require you to “waste” more aggressive offers on, them at that specific point in their customer journey.
Smart, right? That’s the nature of our quick CRM hacks around here.
Don’t miss out on our previous CRM hacks from Optimove experts:
- Subscription Cancellations
- Realtime Data
- The Churn Factor
- Gmail’s Promotion Tab
- The “Power Measures” You Must Know
- How to Make Your Dashboard Insightful
- The Building Blocks of a CRM Strategy
- VIP Definition
- Campaign Prioritization
- Basic Segmentation to Personalization
- Going Beyond Personalization Tags
- Marketing Plan Objectives and Principles
- Using Realtime Marketing to Improve Conversion
- Monitoring the User’s Heartbeat
- The Hidden Data of Emails
- Customer Tier and RFM Segmentation
- Cross-Selling Between Platforms
- CRM Hack: Cross-Sell Principles
- Gamifying CRM Campaigns
- Measuring the Right KPIs
- Repurposing Content
- Marketing Campaign Optimization
- Lifecycle Based Campaigns
- Testing and Evaluating CRM Strategy