One effective and profitable component of any sales approach is customer retention. Finding what works might be challenging though, as there are a lot of products and systems that claim to increase client retention. Compared to earlier times, there is now a greater chance for client retention and brand loyalty because of the current and changing digital world. Because consumers want to hear real stories from brands they can trust, marketers now have an obligation to maintain a consistent brand voice across all touchpoints. Additionally, this implies that they must continuously reinvent themselves to avoid losing the interest of their audience. According to Shopify, the customer retention rate of the clothing industry is around 26 per cent, with Indian shopping marketplaces having a retention rate of 33.7 per cent on the first day which reduces to 8.7 per cent on the 30th day and e-commerce having a retention rate of 24.5 per cent on the first day which reduces to 5.6 per cent on the 30th day.
How marketers can use tech to improve customer retention?
Having mobile devices and digital monitoring allows businesses to monitor and impact decisions about what customers are buying and saying. It also gives consumer the ability to verify information or hunt for better deals whether they are making in-person or online purchases.
Better omnichannel integration, state-of-the-art digital experiences and data-driven personalised loyalty programmes that prioritise meaningful consumer involvement above and beyond redeemable shopping points are all examples of what customer retention implies in the context of digital platforms.
Retention marketing strategies have proliferated across all spheres of the digital space, from email marketing, loyalty programmes, personalised experiences to social media engagement. Brands are actively utilising them to guarantee that these mini-influencers not only promote your brand as an opinion leader but also encourage repeat purchases.
What apparel brands are doing for customer retention?
For Apparel Group India, the pandemic forced the company to look to e-commerce to get and retain customers. The company partnered with GreenHonchos Solutions Pvt. Ltd., to create an Ascent project management framework to ensure technology is optimised for e-commerce growth. Checks for website reliability, functionality, marketing flags, customer experience, funnel map, support tickets/grievances and revenue performance were all made easier for the team by the monitoring framework.
Additionally, it assisted with the development of new features, development sanity checks*, automated alerts* and log testing*, identification of problems and opportunity discovery*. Operations are now far more efficient because of tools like digital ledgers and customised software platforms. The consumer experience has also changed with the introduction of WhatsApp-based ordering and the increased acceptance of UPI-based payments, which is increasing customer retention.
The internationally acclaimed sportswear brand Asics centres customer experience for online shoppers on ‘effective and meaningful communication’, which includes reviews left after the purchase and feedback on delivery. This data-driven approach to communication uses mapped consumer journeys to determine the best moments to engage. Asics highlights how crucial data is comprehending consumer behaviour and preferences. It reaches people who are either interested in sports or who are actively involved in them by using platforms like Meta and Google. Customers are directed to the brand’s website by a call to action in the brand’s targeted advertising campaigns. Customers who make purchases from retail or online stores are added to Asics’ Customer Relationship Management (CRM) database and receive regular updates on new products and campaigns—a marketing tactic known as the ‘Asics Family.’
Myntra offers a reward programme called Myntra Insider. The purpose of the programme is to give repeat clients extra incentives and rewards. Upon enrollment, you begin as an Insider and have the opportunity to advance to higher tiers based on your spending and buying habits.
Description of technical termsDevelopment sanity check: Automated alerts: Alerts given to the development team in case the software or application is not working as intended. Log Testing: A test log is a detailed record documenting the activities carried out during software development or system testing. Opportunity Discovery: |
Reliance Industries Limited operates Reliance Retail, a subsidiary that offers the Reliance One loyalty programme. Customers who shop at Reliance Retail locations receive benefits and prizes from the programme. You will be issued a Reliance One loyalty card upon enrollment. With this card, you may track your transactions and accrue incentives, all connected to your membership account.
With Social Shopper, an e-commerce tool, Forever 21 India saw a 10.65 per cent increase in Add-To-Carts, a 4.8X jump in conversion rates and a 16 per cent increase in average order value. By upgrading its checkout experience with Bolt, an e-commerce tool used in checkouts, Forever 21 was able to increase its conversion rate dramatically, notching a 63 per cent checkout rate for Bolt accounts compared to a 40 per cent checkout rate for guest accounts.
The medium was also helpful for both existing Forever 21 customers and for new customers who visited the site but had never shopped with the retailer before. Because shoppers with existing Bolt accounts are automatically recognised by their email or phone number, they can move through Forever 21’s checkout without ever having to enter a password, payment or shipping information — despite having never shopped at Forever 21 before.
Berrylush, a Noida based D2C westernwear fast fashion brand, has its own app from where customers can do their shopping easily. The app has been downloaded more than 2 lakh times and its consumer retention rate stands at 28 per cent. Additionally, its average review on products is somewhere around 4.3 stars which shows that customers are positively responding to its offerings and are in line to be repeat customers.