These data-driven retention strategies will keep your best customers coming back to your business for more.
Developing a strong relationship with first-time customers is crucial for businesses. Marketers who successfully convert these newcomers into loyal patrons wield significant influence over a company’s sustained growth and success.
Here’s the mechanism: When a first-time buyer returns for a second purchase, their likelihood of making subsequent purchases increases by a substantial 95%. With each subsequent purchase, this likelihood further escalates, underscoring the importance of nurturing these relationships. This strategic investment in new customers can elevate customer lifetime value by as much as 130%.¹
Acquiring new customers demands considerable effort. Once they make their initial purchase, the next critical step is to employ effective retention strategies that encourage ongoing engagement, transforming them into dedicated, frequent shoppers.
However, retention strategies cannot be standardised. In today's landscape, where personalised customer experiences are in high demand, marketers must craft tailored and relevant shopping experiences that resonate deeply with individual preferences. These personalised retention strategies are pivotal in converting your customer base into loyal, long-term advocates.
Identify who your high-value customers are
Understanding and identifying your high-value customers is crucial for sustained business success. Utilising high-quality shopper data enables businesses to reconnect with previous customers who are likely to engage with their products again. By pinpointing these valuable customers and gaining a profound understanding of their preferences and behaviours, businesses can effectively position themselves to remain top-of-mind, encouraging repeat purchases and fostering long-term loyalty.
Criteo integrates three key types of shopper data — identifiers, product preferences, and engagement metrics — leveraging advanced AI for insightful analysis.
This approach empowers businesses to gain deep insights into shopper preferences and behaviours, ultimately enabling them to tailor their strategies and offerings to meet customer expectations more effectively.
Differentiate your messaging based on segmentations
To effectively engage with a hyper-focused audience, marketers can leverage data to reconnect with specific segments such as abandoned cart customers, seasonal buyers, and high-order-value clients. By harnessing insights from first-party data, platforms like Criteo empower marketers to craft tailored strategies for each segment, delivering personalised messaging and experiences that resonate deeply.
A compelling example comes from Jockey, the renowned apparel brand, which collaborated with Criteo on a predictive audiences campaign. Mark Mraz, Senior Director of Marketplace, SEM & Finance at Jockey, highlighted their shift towards targeting audiences with high predictive lifetime value rather than a broad demographic approach. He noted, "Our goal was to move away from targeting a large audience and instead focus on specific search terms and retargeting our top customers and those most likely to make a purchase."
This strategic partnership yielded remarkable results: a notable 109% increase in return-on-ad-spend within just two months and a substantial 30% growth in revenue year-over-year. This success underscores the effectiveness of personalised segmentation and targeted marketing in driving significant business outcomes.
Enhance product discovery through personalised advertising
Enhancing product discovery through personalised advertising is key to re-engaging existing customers effectively. Tailoring ads to showcase products aligned with customers' preferences and needs, based on real-time insights, fosters deeper engagement and increases the likelihood of repeat purchases.
Criteo provides invaluable support in this endeavour by leveraging its First Party Media Network, which taps into one of the largest commerce datasets on the open internet. While businesses have insights into past purchases, Criteo expands this understanding by utilising advanced machine learning. This enables identification not only of products previously purchased but also of items customers are exploring elsewhere online or buying from competitors.
Armed with these insights, marketers can seize opportunities to recommend relevant products, whether through upselling, cross-selling, or simply highlighting items that align closely with customer interests. This approach not only enhances the relevance of marketing efforts but also boosts customer satisfaction and loyalty by offering a more personalised shopping experience.
A seamless experience
To effectively engage shoppers across their entire journey, marketers need to provide personalised experiences that align with how customers prefer to browse and shop. Whether customers are scrolling through social media, reading articles on their favourite publications' websites, comparing products on retailer sites, or exploring the open internet, it's crucial to optimise engagement at every touchpoint.
Criteo facilitates this omnichannel approach by leveraging its AI Engine, which analyses over 120 shopper intent signals from a staggering 35 billion daily browsing and buying events. This real-time analysis enables Criteo to predict the optimal moments to re-engage each customer along their journey.
The AI Engine then delivers hyper-relevant ads in real-time, supporting awareness strategies to capture attention before purchase decisions are made. Moreover, it continues to re-engage customers when they are ready to convert.
To further enhance customer loyalty and retention, marketers can utilise these capabilities to remind customers about products they're interested in, showcase special deals, and present hyper-relevant loyalty offers throughout their journey. This proactive approach not only keeps the brand top of mind but also strengthens the relationship by consistently delivering value and relevance to customers at every stage of their interaction.
Drive value everyday
For marketers aiming to cultivate enduring customer relationships that extend beyond initial transactions, prioritising deeply personalised and customer-centric experiences is paramount. Criteo, leveraging the largest commerce dataset available on the open internet and powered by state-of-the-art AI technology, simplifies the process of reconnecting with customers.
This robust combination enables marketers to consistently engage customers in ways that resonate with their preferences, ensuring the brand remains top of mind and encourages repeat business. By harnessing these capabilities, businesses can effectively foster loyalty and drive sustained growth over time.
Excite your existing customers. Go beyond a single sale and re engage your website, app, or in-store customers with dynamic ads that help them discover more of your products that they’ll love
Ready to re-engage your customers to grow your business?
Contact sales@365digital.africa
¹ Bluecore, The One and Done Buyer Problem
²Forrester, Why Marketers Can’t Ignore Data Quality