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Customer Retention. Automated

How to Build Customer Loyalty Early

Posted by Enelda Butler on Feb 22, 2016 10:50:18 AM
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customer-loyalty2.jpgData-driven marketing can be valuable for all retailers, from established enterprise-level businesses to young startups. Small businesses that harness the power of data-driven marketing have a great opportunity to build customer loyalty early, and this trust will help grow customer value over time.

A great example of this is pet n’GO, a Mexican-based online retailer specializing in pet food and goods. Pet owners are a passionate and dedicated group, so capturing their loyalty is essential for pet n’GO to succeed. Because this audience is also a niche group, retaining customers is of high importance to pet n’GO. CEO Alex Gonzalez explains, “Our business model relies on customer retention. Since we are willing to pay a high CPA, we need to ensure that our retention is at its best to make a profit on that consumer in the medium and long run.”

 

Additionally, eCommerce in Mexico is in its foundational state. This offers a great opportunity for retailers to stand out in this underserved market by targeting a niche group and continuously nurturing the relationship between customers and the brand.

 

The best time to strengthen customer relationships is immediately after their first purchase, while the brand is at the forefront of their mind. To build loyalty, it is important to reach out to customers with relevant and personalized messages. Pet n’GO begins its relationships with customers with a targeted series based on purchase history. They segment their first purchase emails by product category, with separate series for customers who purchased items for dogs or cats.

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This segmentation makes sense because the types of products for dogs and cats vary greatly, so if a dog owner receives product recommendations for cat items, that information is completely irrelevant to them. Alex Gonzalez explains, “Cross selling is so important and being able to build custom segmentation so we can reach consumers about other product categories is a must.”

 

This segmentation bodes well for pet n’GO and has led to high open and click rates for the segmented first purchase series. The cat series has a 53% open rate and a 4% click rate, and the dog series has a 46% open rate and a 4% click rate.

 

Segmentation is just one of the tactics that pet n’GO uses to keep their customers engaged and build brand loyalty. Download the pet n’GO case study to learn about their other campaigns, like the cart recovery series that is responsible for nearly half of their revenue from data-driven marketing.

Topics: Customer Retention, Best Practices

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