Predicting the future trends of ecommerce is becoming more and more difficult.
I was recently asked to predict the future of ecommerce on a panel hosted by Friendbuy alongside Iterable and Extensiv.
Questions like the impact of AI and the state of the economy only add to the uncertainty and rapid advancement of our industry.
While it may be difficult to forecast the future, there is one strategy that will always remain valuable: doubling down on customers.
Taking care of customers is crucial to building a strong foundation for any brand.
When brands prioritize their customers, everything else falls into place, including profitability and long-term growth.
Customers are the most valuable asset a business can have, and taking care of your customers will enable everything to fall into place.
Retention Growth Levers: The “Easy” Money
Investing in a retention strategy is table stakes for brands that want to build a sustainable and profitable business.
Retention is where the “easy” money lies and therefore, it has been so neglected by most brands.
When we start working with brands, who in most cases are already doing “well,” we typically come in and drive an additional 2-3x revenue from these channels because they are so untapped.
Even for brands doing $100M+ in annual ecommerce revenue, as they still typically have untapped and underutilized programs.
Retention is the key to building a brand that lasts.
While acquisition is important, retention helps keep customers coming back, creating long-term loyalty and driving more revenue.
The strategy is key and in the scope of your marketing costs, it’s nominal and has the highest ROI.
Maximizing Revenue through an Actionable Retention Strategy with Email, SMS, and Push Channels
Today’s leading brands are using email, SMS, and push channels to retain customers through a three-step process that focuses on maximizing revenue.
Many brands have set-it-and-forget-it strategies that fail to utilize their customer data in order to test and then be able to optimize.
A strategy, similar to the one we used for Nutrafol which helped us increase revenue by over 300% in 90 days, can be implemented using our methodology.
The three steps involve refactoring automations (yours are most likely old, outdated and broken), scaling segmentation (you need to find the optimal cadence and frequency for each audience within your program), and then continuously testing and optimizing.
At Wavebreak, we recommend running weekly and monthly tests to determine the ideal messaging, send times, email/SMS creative, and other factors that will be most effective in improving performance in your existing program.
Each phase requires best-in-class strategy, on brand creative, personalization, data analysis, and reporting.
Our methodology is available in our 2023 CRM guide that you can find here.
By following this three-step process, brands are using their email, SMS, and push channels to continue to stand out as a leading brand.
Customer Centricity and Data Utilization: Keys to Ongoing Ecommerce Success
Founders and operators need to focus on their customers and utilize the data available to them in order to keep a pulse on their customers and the overall state of ecommerce.
Instead of trying to predict the future (no one can), they should focus on making products that their customers want and building their marketing program to align with their customer journey.
By talking to their customers and utilizing data, you can gain valuable insights into what their customers are thinking and what they want, it really is not that complicated.
Brands often have access to a vast amount of data that they don’t utilize.
By analyzing this data, brands can determine what is resonating with their customers and what they should and can do more of.
Ultimately, by putting their customers at the center of their strategy, founders and operators can better predict and prepare and forecast for the future.
Ecommerce Growth: Where to Focus
At Wavebreak, our top takeaway for succeeding in the future of commerce is to look within.
Some of the biggest growth opportunities aren’t in some new undiscovered channel, but right in front of your eyes within your existing operations, marketing and customer base.
You should optimize and hone in on what is working and how you can continue to improve without losing focus.
If something happens in the future and you need to pivot quickly, this foundation will enable you to do so timely and effectively.
At Wavebreak, we recommend trying to improve every month, followed by every quarter and you’ll be surprised how far ahead you are in a short period of time.
Now is the time to continue to double down on retention so you have the foundation for the future.
If you’d like to shortcut your learning and implement proven retention strategies already leveraged by top brands, reach out to Wavebreak, a leading email and retention marketing agency.
Schedule a call with our VP of Growth to learn more about how we can help.