Table of Contents
The previous chapter of our CVO Guide brought into the spotlight another important RFM segment – Lovers – and captured some of the tips that can help you nurture Lovers into Soulmates a.k.a. your ideal customers and the most valuable segment in your customer base.
Today we’re going to explore another RFM group – New Passion, a group that brings a lot of opportunities for your eCommerce business if you treat them right.
Customers in the New Passion segment have placed 1-2 orders (Frequency score is 1-4) very recently (Recency score is 5) and had an average or above-average Monetary Value (score is 4-5).
New Passion customers place high-value orders and they’ve done so recently, but they lack in frequency. If nurtured properly, this segment could turn into Soulmates – the most valuable segment for your eCommerce business. If neglected, customers in the New Passion group are at risk of becoming Don Juans – the customers that make one time high purchases and never come back.
It’s clear that they are interested in your e-store’s offer, so let’s see what would keep them loyal and coming back for more.
Turning a New Passion into a Soulmate through Retention
Packaging and unboxing experience
The first personal interaction with your brand and products actually takes place when their order is delivered. When you sell your products exclusively online, you need to find ways to bring offline experiences into the customer journey. Show your New Passion segment that amazing unboxing experiences aren’t designed for influencers only.
Delivery is such an important touchpoint. With a memorable packaging and unboxing experience, you can create that personal connection that not only excites new customers but also creates a strong, positive, lasting first impression that has the power to convert a New Passion into a Soulmate.
Remember that this experience is about how customers feel. Prove that you care about them beyond the moment of purchase. It’s essential to add personalized elements such as a “Thank You” note with a personalized message based on their profile, a gift based on their first order or a discount for their next purchase.
How To Do It
Analyze the New Passion segment by looking at the product returns by the RFM group, following the behavior of the RFM group you’re interested in and first-time customers. See in REVEAL what was a real success and what pulls your e-store down.
User Experience and Customer Satisfaction Surveys
User and customer experience surveys capture valuable information about individual customer satisfaction from a segment that sees your e-commerce store with new eyes.
The user experience of the New Passion segment helps you improve the journey on your website for first-time visitors, thus improving your efforts to gain new customers. Customer experience surveys help you gain insights into what New Passion customers expect from your brand and what you could do to improve retention rates.
Customer surveys are most effective when sent right after the order was placed and right after the order was delivered. Your goal is to obtain insights while your connection is still hot and get honest feedback from New Passion customers. Their answers to your survey questions might hold the truth behind those abandoned carts, high bounce rates on your landing page from the latest sales campaign or the success of a certain category in your e-store.
How To Do It
Learn more about your customers and show that you really care about their opinion. Keep an eye on the NPS score – in REVEAL you can see it in the Dashboard and in the Customer Voice reports. You can generate an NPS survey from templates by connecting REVEAL with Klaviyo or Sendgrid.
Onboarding program/ new customer treatment
The onboarding process is crucial for your retention strategy and could determine if your New Passion customers transform into Soulmates or Don Juans. The goal of the onboarding process is to help your New Passion customers get the most out of the products or services they bought from your e-store.
Their onboarding experience has a strong impact on how they perceive your brand and you must use their time wisely. So, make the onboarding process as quick and easy as possible, offering alternative content formats to deliver the information you want to pass to your New Passion segment.
How To Do It
You can learn from all of your RFM segments so before you design an onboarding program, you can use REVEAL to measure Historical CLV and Predictive CLV by RFM Group, Average Days Between Transactions, Chances to Place the next order, Retention curve, 2nd-month cohort stickiness rate.
Access to customer-only content
Another way to improve retention among your New Passion customers and nurture them into Soulmates is access to exclusive content full of valuable tips and tricks. Designed as an educational/ informational program, exclusive content increases their trust in your brand and helps you build relationships with New Passions that are meant to last.
Offering a magazine issue exclusively for your clients helps you delight your most loyal customers and rewards them for their interest in your content with exclusive deals. products or services to support sales. Ideally, you would be able to personalize this exclusive content based on the information you have captured from each client.
How To Do It
REVEAL helps you identify top-performing brands, products and categories that could be the foundation of your exclusive content pieces.
Personalized emails
Email marketing is one of the most effective channels for personalized messaging. It can be as simple as including their first name in the subject line. You can prove that you pay attention to the special moments and milestones in their life and join the party with a birthday or anniversary surprise.
If you want to transform your New Passions into loyal customers, you need to make them feel special and to let them know you really pay attention to their needs and preferences. To do this, you can use email to ask them about their latest experience or to offer a special deal based on their previous order.
How To Do It
REVEAL allows you to identify who your New Passion customers are and the integration with Klaviyo or Sendgrid allows you to automatically send personalized messages to this list of contacts. If you want to make a personalized offer, look at the Buying habits report to find what the New Passion group is interested in.
Loyalty programs
It’s important to let your New Passions know about your loyalty programs right from the start. You could use the onboarding process to present the perks of being a recurring client of your e-store. Also, you can give them a taste of your loyalty program from their first order, like telling them how many points they got from the first order and how they would be able to use them.
What would they love to receive in return for their loyalty? Rewards, tiers, perks, gamification, exclusive/ VIP benefits? Look at what keeps Soulmates engaged and adjust your loyalty program to offer the best experience.
How To Do It
REVEAL will let you see between which orders your e-store has the biggest drop. Usually, the main drop is between the first and the second order, but it might differ depending on the niche you’re in. Look in the survey answers for the reasons customers leave you. Use any data you have in REVEAL to translate it into a retention strategy that generates loyalty.
Cross-selling and upselling
New Passion customers are still new to your brand, so cross-selling and upselling strategies are perfect ways to let them learn more about your rich range of products and services, but also to help them make an informed decision.
Using cross-selling will improve their experience by discovering complementary products and services designed for their needs. Using up-selling, you help your New Passions the value they get with each product or service and emphasize the benefits of choosing a higher-priced alternative.
How To Do It
See what products are more popular among valuable segments like Soulmates and Lovers by looking at the Buying Habits report and compare it to the habits of New Passions. EXPLORE can then help you include the chosen products in the add-to-cart page, during the checkout process or as a pop-up.
Subscription-based purchases
If your eCommerce business offers the possibility to order subscription-based products, you should let your New Passions know this right from the start. It’s the perfect opportunity to create a buying habit and to maintain repeat purchases that transform the New Passion customers into Soulmates.
This tactic has multiple advantages for both sides. Your customers can take ordering recurring carts off their minds. Your company improves stocks because subscription-based purchases are predictable.
How To Do It
Being integrated with Shopify, REVEAL allows you to add RFM group tags directly into your Shopify CRM. REVEAL’s features combined with Shopify’s new capability helps you detect your New Passion customers and show them the subscription-based alternative in the checkout stage.
How to bring more New Passion customers
Create a lookalike audience based on the New Passion and Soulmates segments. Import the data from Reveal into your advertising platforms to target and attract similar people to your customer base and make the most out of your paid media budget.
Create RFM marketing campaigns by reiterating what worked best for the New Passion group. Gather the insights generated by the tools you’re using for your eCommerce business to create data-driven marketing campaigns. Find the best messages and offers to attract and convert customers in the New Passion segment.
Use Conversion Rate Optimization and Customer Value Optimization best practices for your conversion and retention efforts. New Passion is an RFM segment with high potential and might be converted into Soulmates but you might also lose them if you don’t win their interest and trust, turning them into Don Juans.
The New Passion group is an early form of your Soulmates if you succeed in converting them into loyal customers. If you don’t keep the fire burning, they inevitably become Don Juan customers. Try to create a strong relationship with this RFM segment and expand your most valuable group.
Stay tuned for our next chapter where we continue to write about another RFM group: Flirting!
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