Why is customer retention important?
The customer is at the center of the business universe, and customer retention has never been more important to continued success. A 5% increase in customer retention can increase profitability by 25-95%, given it’s five times more expensive to sell to a new customer than to an existing one. This is especially true today, where the buying experience is shaped by experiences in the digital world.
Nine out of ten consumers say they are more likely to shop brands that deliver personalized offers and recommendations, making it essential to meet their evolving needs.
Customer Retention
5%
Profitability
25 - 95%
The Challenge we see
Significant competition and choices
Consumption-driven categories like clothing, apparel, beauty & cosmetics are inherently high in repeat purchases.
But with significant competition and an abundance of choice in the market, it remains challenging to lock down repeat purchases and control revenue leakage.
Understanding your customers
The fundamental challenge facing businesses is a lack of customer understanding, which leads to guesswork-based engagement.
Businesses must carefully connect customers to products and promotions to drive repeat sales, a goal that will never be accomplished with a firehose approach to communications.
Customer profitability
The wrong approach can actually drive customers away, causing customer fatigue, trust erosion, and eventually brand dilution, ultimately lowering customer profitability and lifetime value.
The VectorScient Solution
With PredictAlly™, our proprietary recommendation engine, you can analyze the engagement of each individual customer to gain insight into their repeat purchases and boost customer retention.
Effective Marketing execution
with deep personalization for
tactical marketing
Using PredictAlly™, we provide prescriptive recommendations based on every customer’s unique journey with your brand and the stage of the lifecycle they’re currently in. We deliver those recommendations directly to your marketing execution platform such as Klaviyo, MailChimp, etc.
Customer segmentation by purchase likelihood
Customer win-back recommendations
Churn recommendations
Dynamic loyalty incentives recommendations
Product and promotion recommendations
A strategic compass for gauging the holistic
performance of your customer retention strategies
Customer Retention Dashboard
A visualization dashboard to help you measure the overall success of your retention strategies, powered by multiple powerful KPIs. Rather than a single metric, the dashboard tracks analytics explaining your revenue, predictive analytics, business trends, and performance predictors.
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Customer Retention
Customer Retention uses an overall score to measure improvement over last month’s retention performance. This score is computed based on a number of finely calibrated metrics and historical trends that combine to form a benchmark score to measure against.
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Customer Loss
Customer Loss measures how many customers are lost before their value is fully maximized. This KPI is based on analyzing customers who have churned in a natural progression versus customers who churned before making an expected number of purchases.
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Frequency Loss
Frequency loss is a measure of customers whose purchase frequency has dropped significantly in the last six months, compared to their individual purchase journey with your brand. This allows you to identify and approach this niche customer segment with personalized messages.
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Revenue Loss
Revenue Loss captures customers whose order value ($ spend) has dropped significantly in the last six months, compared to their individual purchase journey with your brand.
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