At Omniconvert, we spent the last couple of months trying to understand eCommerce customer retention.
We conducted interviews with eCommerce Managers and industry experts. We conducted online surveys and we also did heavy desk research on the topic. All these resources told us one thing: eCommerce customer retention is an important ingredient for the survival of an e-business.
Growth is not a question of acquisition but one of retention.Anita Andrews, Director- Analytics Practice, Magento Services
A business that isn’t growing it’s dying.Dres Traynor, Intercom Founder
Acquiring a new customer is anywhere between 5 and 25 times more expensive than retaining an existing oneHBR – The value of keeping the right customers
But quotes are one thing. Reality is something else.
What we got from our first research on this topic is that although customer retention is vital for growth, most of the budget is still spent on traffic acquisition and the mindset is still on measuring AOV and CAC.
It’s insane how much eCommerce businesses are still spending on Adwords and getting new traffic and how little is being spent
We’ve been on a continuous quest trying to decode eCommerce customer retention and the lack of focus on it. We heard that:
- it’s not a sexy topic;
- it’s too early to bring this up or there is a lack of education;
- it’s difficult to talk to customers about improving customer retention when they don’t even see it as a problem or a KPI to monitor.
Meet Otter shoes – The icebreakers
Luckily there are a couple of icebreaker e-businesses out there that do understand customer retention and that do monitor it and make it their North Star.
And luckily for us, they are one of our customers.
It’s impossible not to have heard of Otter Shoes. Leaving aside the fact that they are one of the biggest shoe retailers in Romania, this year they also launched a brilliant CSR & Marketing campaign called The Otter Shoes which made me their fan.
It’s one of those campaigns that made me realize that they really put themselves in their customers’ shoes.
Otter is also one of those hip customers you want to have. This year they’ve been heavily focusing on co-creating with us a retention strategy with the aim of bringing them closer to their customers.
To understand more about their journey and how they come to realize customer retention is something they should pursue, we sat down with Cristi Movila (eCommerce Director at Otter), the brains behind this operation.
Over the course of this week, we will be sharing with you the Otter story in small but strong doses.
Here are the first 5 episodes of the series. Each episode answers to one of our questions related to Otter’s customer retention and segmentation strategy.
We start with asking Why Retention?
Enjoy the watch! And don’t forget to tell us your story in the comments section below.
If you can relate to Cristi’s story or if the Otter story raised some eyebrows and some questions, join us.
We are piloting an eCommerce customer retention product. And we need your help to validate it.
If you want to be part of the team shaping this product, take the survey (and we will share with you the results)
200 eCommerce professionals already did so.