What Retention Rate Really Means and How to Improve Yours.
You'll often hear me talking about retention rates, but what do they actually mean?
Retention rate is a vital metric that reflects the percentage of customers who return to shop with your brand over a given period. If you use Shopify as your eCommerce platform you'll see this in your analytics dashboard.
It’s a clear indicator of how well you’re keeping customers engaged and satisfied after their first purchase with your brand.
A high retention rate is a sign of strong brand loyalty, leading to more repeat purchases and ultimately boosting your revenue and customer lifetime value. All metrics you want to keep an eye on.
Actionable tips:
Personalised Email Campaigns: Use your email platform to segment your subscribers and send personalised emails based on past purchase behaviour, offering tailored product recommendations and content to encourage repeat business. Batch and blasting to your list is a big no-no.
Optimised Product Recommendations: Ensure your website displays relevant product recommendations on the homepage and product pages, making it easy for customers to find and purchase complementary items or products based on their purchase history. Use the native Shopify functionality or other options are ReBuy or Nosto.
Exclusive Offers via SMS: Use SMS marketing to send time-sensitive exclusive offers or early access to sales, making customers feel valued and encouraging them to return. Did you know 90% of SMS messages are opened within 3 mins?! If you want to see how well SMS is working for a brand, check out Ffern - they've nailed it!
Parcel Inserts: Post-purchase comms aren't just about email. Trying including a parcel insert or bounce back card into your orders. One side could be about brand education or your latest collection with the other being personalised thank-you note or exclusive discount code to delight customers and incentivise them to return for their next purchase.
Retention isn't just a buzzword; it's a powerful lever for growth. By embedding strategies like these across your customer journey, you're not only making it easier for customers to come back, you're giving them a reason to. Whether it’s a timely message, a thoughtful recommendation, or a small surprise in their parcel, every touchpoint counts. Start small, test what works, and keep showing up in a way that feels personal, consistent, and considered.