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Customer Retention. Automated

Valentine's Day: Heart of Customer Retention Strategies

Posted by Andrew Pearson on Feb 12, 2015 11:04:00 AM
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For a growing number of online retailers, Valentine's Day is a key revenue driver. While cards, candy & flowers are the norm, many online shoppers shred-the-box, and purchase electronics or arrange special travel experiences and are perfectly acceptable gifts to give on Valentine's Day.

For any merchant, even those whose product line isn't traditionally "romantic", the lead up to Valentine's Day offers an important post-holiday opportunity to share the heart of your business with customers. 

Valentine's Day represents the heart of retention marketing, offering a perfectly timed opportunity to reward and retain more of your best customers and biggest spenders, convert your one-time holiday shoppers into more valuable repeat buyers, and win back your churning customers.

We suggest a strong focus on customer retention marketing over the next 4 weeks, particularly to key segments like your best customers, biggest spenders, churning customers, and new holiday customers. 

Rewarding your Best Customers

Windsor Circle defines a Best Customer segment(1) by those in the top quartile of purchase recency, frequency, and monetary value.  Basically, those customers who shop the most, have shopped most recently, and are among the highest average order values.  In RFM Analysis terms, your Best Customers are R1, F1, M1.  

A strong Valentine's retention marketing strategy includes a hearty special offer to your best customers, or, if you don't do discounts, an extra personalized thank you e-card from the CEO. Discounts or specials should reflect the monetary value that these customers represent, and encourage them to keep spending at the highest range.  For example, get $50 off when you spend $150 - tie the cash or percentage discount to a minimum order value.  And, consider messaging like "We deeply appreciate your business", or "We're offering the sweetest deals to select customer sweethearts - like you!" 

(1)our clients can find the "WC_Best_Customers" list in your email platform

In case you forgot, the theme is love

Like ShoeMall did in this landing page below, don't forget to highlight your most Valentine's-appropriate gifts, and theme up your emails and landing pages with evocative colors, "IHEARTYOU" coupon codes, and spicy language.

Convert New Holiday Shoppers into Repeat Buyers

"Our holiday elves were thrilled to fulfill your order.  Now, our {company name} cupid has a special gift for you." 

At its essence, Valentine's Day is the first culturally-validated shopping event after the holiday season when consumers are ready to treat themselves or their loved ones. Most retailers need to push one-time buyers to become repeat buyers within a 30-1800 day window, depending on the products sold and lifecycle metrics.  Additionally, many retailers see a significant portion of their new one-time buyers during the holiday shopping season, Oct 31 - Dec 31. Because of this, the period from Jan 1 through Valentine's Day (Fe 14th) is a key time period where retailers must aim to convert a fair number of these new shoppers into 2x buyers.

Our eCommerce Analytics software determines the optimal number of days in which to make this conversion.

Build a custom customer segment using past purchase history, for one-time buyers the number of total orders would equals "1" and the date of the single purchase set to have occurred between Oct 31st, 2014 and Dec 31st, 2014. We are including the days after Christmas because some first-time shoppers have come to you after receiving a gift card.  

Our clients use advanced targeting and some exclude shoppers who spent less than a certain amount, or came from a source which typically produces buyers with low customer lifetime value, which is particularly important when offering a discount to encourage conversion among these one-time holiday shoppers.

Most importantly, build a series of email creative which communicates a truly heartfelt message that connects the customer to the story of your business. This is the time to share a great moment in your company's history, a personal message of appreciation, or an aspiration for 2015.

Check out our FREE 2015 Valentine's Day eBook packed with winning examples and best practices to help guide a successful marketing strategy.



Topics: Holiday Marketing, Best Practices

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