According to the Gartner Group, 80% of your future profits will come from just 20% of your existing customers. It doesn’t take much to make an impact – simply increasing your customer retention rate by 5% can boost your profitability by 25-95%, according to Bain & Company and Harvard Business School. Repeat customers are simply better for your bottom line – they buy more and cost less to keep than acquiring new customers. Plus, loyal shoppers naturally become your best brand ambassadors.
That all sounds great, so what’s the catch? Figuring out when and why customers don’t come back is hard. It’s a nuanced challenge that requires time, data, and continual testing. Many marketers bemoan a lack of resources (44%), budget (33%), and strategy (24%) as barriers to improving conversion rates generally and applying effective personalization, according to Econsultancy’s Conversion Rate Optimization Report.
That’s why UnDigital has developed an easy-to-implement solution to your retention strategy. UnDigital’s software lets brands create, schedule, and test personalized unboxing marketing campaigns. Using conversion rate optimization (CRO) strategy and data analytics, UnDigital has helped companies increase first-time customer reorder rates by up to 44%.
The Power of Personalization
Personalization is a fundamental factor of conversion and retention, yet 35% of digital marketers and ecommerce professionals consider it ‘very difficult’ to implement, according to Econsultancy’s CRO report.
From Starbucks cups to networking events, using a person’s name has a powerful effect on them. Our names are closely linked to our identity and addressing someone by name helps you form connections.
You’re probably already addressing customers by name in their inboxes, but what about inside your boxes? When customers open your product, does a plain packing slip fall out? Or are they receiving a personalized message, addressing them by name, thanking them for the business, providing helpful tips on the item they ordered or recommending complementary products?
Half (49%) of consumers said they have purchased a product they did not initially intend to buy after receiving a personalized recommendation. Printing a curated list of relevant product recommendations on a physical print inside their package is a great way to add personalization, improve the overall customer experience, and increase the likelihood that your first-time customer will become a repeat customer.
E-commerce brands that are personalizing marketing within their packages to first-time customers are seeing improvements in re-order rates by over 25%, according to UnDigital data.
Detangling the Data
Perfecting your retention strategy will involve continuous measurement and optimization. A/B testing is the most popular and most valued CRO method, with 94% of digital marketers and ecommerce professionals using or planning to use A/B testing to improve their conversion rate, according to Econsultancy.
When it comes to your personalized unboxing marketing, UnDigital offers as many A/B test versions as you need. Test multiple creatives and see what copy converts the best. UnDigital’s software also includes a real-time dashboard that shows you the number of impressions per campaign, conversions, conversion rate, and revenue. So, you can make informed decisions in real-time.
Loyalty Pays Off
Repeat customers are the gift that keeps on giving. Not only will they spend more themselves, they’ll also bring you more business through word of mouth, which is the primary factor behind 20-50% of all purchasing decisions, according to McKinsey.
Turning first-time customers into repeat buyers requires time, attention, and loads of data. With the right tools, you can personalize, automate, and evolve your unboxing marketing collateral to maximize ROI and gain loyal customers.
UnDigital is the inventor of Unboxing Marketing Automation. With UnDigital’s proprietary combination of software and on-demand printers, you can deliver the perfect marketing print inside every outgoing package. Think Google retargeting for packages. Leading retailers that use UnDigital to personalize the unboxing experience have increased customer retention by up to 15 percent.