But Acquisition sometimes overshadows Retention!

And that’s a No-No. Because… 

• Retaining existing customers is 5X cheaper than acquiring new ones.

• A 5% increase in customer retention could result in 25-50% more profits.

• Your existing buyers spend 67% more than the new ones.

Let this stand as a quick reminder to not take your pedal off Retention.

We analyzed individual stages of the Customer Journey and came across the key drop-off moments that contribute to a hit in brands' retention brands like a Wrecking Ball.

Drop-off reason 1 - Wrong Channel of communication

Here, we have the channels in which users come in touch with the brand. Which is not targeted right.

Gen X - 76% on Facebook, Millennials - 75% on Instagram, Gen Z - 87% on WhatsApp

And only 12% of brands target all of the above mentioned platforms.

Solution

• An Omnichannel Customer Service that covers all forms of digital marketing

Drop-off reason 2 - A lack in Information shared

Say you’ve opened yourself to customers on all channels on the Omnibox, the next issue customers face is lack of information.

Solution

Develop a Product Information Strategy, where you

• Map down the strategy with respect to the target audience & channel.

• And the most important…

• Add UGC (User-generated content) - Reviews, in various forms (photos, videos), for every product/service.79% of online consumers trust reviews like they trust personal recommendations.

Drop-off reason 3 - Poor User Interface

Solution

1. Site Speed: The more responsive the better because less than a third wait more than 4 seconds for anything to load. Harsh, but true.

2. Store Design: If it looks good, 93% are convinced the brand knows what they’re doing, and are interested to try. So, create a chef’s kiss design.

Drop-off reason 4 - Inadequate Customer Benefits

Solution

1. Shipping: 73% feel free shipping is a requirement. And 24% think same day delivery is a huge factor. Conclusion - Shipping options matter.

2. Offers: 57% of people who made a purchase wouldn’t have gone through it if not for a discount.

Drop-off reason 5 - Bad Checkout Process

Solution

1. Fewer Clicks: The fewer the better.89% of shoppers prefer a checkout with less than 5 steps.

2. Include Guest Checkout: First time customers hate registering. Giving them an option to complete a purchase without sharing personal information.

3. Remove Distractions: Keep users focused on completing the checkout process. No unnecessary visual overload & Clean Design that focuses on just the bare necessities.

4. Include Auto-Complete: Save essential customer data to reduce the number of steps for future purchases.

5. Do Not Redirect: Leaving a page to complete the payment stage induces security concerns in the minds of customers. Avoid it at all costs.

Drop-off reason 6 - Lack of Add-ons to seal the deal

Solution

1. Security: Over 80% of consumers feel safer seeing trustworthy card logos/payment modes prominently displayed.

2. Plenty of Payment Options: Convenience of payment is key for customers.

Drop-off reason 7 - A journey that’s not personalized

• Whether they are a Repeat Shopper/Subscriber/VIP Member

• The type of Device they use (example: ease of payment mode varies between PC & mobile)

• Choice delivery options (mode of delivery, speed etc.)

• The choice channel of approach (via social media, ad promotions, website etc.)

• Choice of payment (BNPL, UPI etc.) with the Location of the individual (analyze the major mode of payment used in the area)

Drop-off reason 8 - Poor Customer Support & communication

Solution

1. 59% Prefer post-purchase customer support through instant messaging apps like WhatsApp or Social Media platforms like Facebook & Instagram. So, target right.

2. Keep customers in the loop regarding order status in real-timeProvide status of orderNotifications reminding delivery (on the day or before based on analysis)Ask for delivery confirmation once delivered. Follow protocols to avoid NDRs.

Drop-off reason 9 - Unsatisfying return process

Solution

Integrating a system for seamless Returns.

• Categorize requests into returns/refunds/exchanges. For example: Equal exchange, Full refund.

• Warehouse data on specific products (SKUs) to update stocks in real-time. Avoiding miscommunication between retailer and customer.

• Closest distribution house for a time effective delivery.

• Real time monitoring of order status and progress for fulfilment.

Drop-off reason 10 - Ending the experience without asking Feedback

Solution

NPS - ask for feedback after a day or two automatically. This increases customer satisfaction as the brand is keen on customer feedback & needs.

Ensure maximum and optimal utilization of e-commerce services. By making decisions using Logistic intelligence.

Figure the drop-off reason that you face. Answer them with the right Solutions at the right time

That’s the end of our talk on 'Zero Customer Drop-off is achievable'...

See you on the next coffee date!

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