The Customers You Already Have

Retention is where the margin is

Most stores spend nearly all their marketing budget acquiring new customers and almost nothing on the ones who have already bought. That is backwards, because the second purchase costs a fraction of the first.

The customer list is the most valuable asset a store has and the least worked.

Four sequences worth building

1. Post-purchase — confirmation, dispatch, delivery, then how to get the most from it
2. Review request, timed to delivery
3. Replenishment — for consumables, timed to when they will run out
4. Win-back — for customers who have not ordered in longer than usual

The replenishment one is the highest-return sequence in most consumable categories, and it is the least commonly built. If you know a product lasts eight weeks, email at seven.

The post-purchase window is underused

The period between order and delivery is when a customer is most engaged with your brand. Most stores send a dispatch notification and nothing else.

• Set expectations clearly, so nobody is chasing you
• Tell them something useful about the product before it arrives
• Introduce the business briefly — who you are, why you do this
• Make it easy to add to the order if it has not shipped

Segment by behaviour

Sending everyone the same message wastes the list. Segment by what they bought, how often, how much they spend and how recently.

A customer who has bought three times deserves different messaging from one who bought once eighteen months ago, and both deserve better than a general newsletter.

Measure revenue per recipient

Open rates are a weak measure. Revenue per recipient tells you whether a campaign was worth sending, and it is the number that should decide what you send next.

It also protects you from the common trap of sending more frequently to a list that is quietly disengaging.

Frequently asked questions