IN THE KNOW
August 2024
How to Retain Customers and Save On Marketing Costs
Laryssa Wirstiuk
When it comes to effective jewelry marketing tactics, trends may ebb and flow, but the value of customer retention has remained steadfast and potent throughout the years. It’s especially important in 2024, when trying to capture the attention of new customers can sometimes feel like an endless grind.
In 2013, the average cost to acquire a new ecommerce customer was $9. Fast forward to today, and that cost has soared to $29—a 222% increase. In such an economic landscape, it becomes clear why nurturing and retaining existing customers, who already trust and value your brand, is financially sensible. So how can you keep customers who already know and love you coming back for more?
Allison Kaufman
14K sapphire
and diamond
necklace .28 tcw
MSRP $1,803
800.800.8908
Why Customer Retention Matters
A retained customer is akin to a golden goose, continuously laying eggs—revenue, in our case— surpassing the sporadic gains from new customers. Investing in customer satisfaction and loyalty reduces the incessant need to attract new business, a pursuit that can be both costly and time-consuming.
And retaining customers doesn’t only make financial sense. The customers who love you and patronize your business most often are also going to be the ones who will help you expand your reach and make improvements over time. These advocates are not just buyers; they’re fervent supporters who amplify your brand through authentic, word-of-mouth marketing, which is invaluable.
The feedback loop from loyal customers is a treasure trove of insights. These insights, born from repeated interactions, offer guidance for continuous improvement and innovation. Your customers’ honesty and trust are critical for your business if you’re committed to longevity and relevance.
Samuel B
Sterling silver &
blue topaz “Glow
Studs.” Available in all
birthstone colors
MSRP $119
516.455.2615
Syna
18K cosmic blue
topaz cushion and
multi sapphire, emerald and
diamond ring
MSRP $10,250
201.336.4132
Know Your Current Customer Retention Rate
How do we benchmark and measure customer retention effectively? By calculating the proportion of repeat customers to your total customer count, you can gain valuable insights into the health of your customer retention efforts. Simple metrics, such as the returning customer rate available on platforms like Shopify, offer direct insights into the health of your customer retention strategies. Aiming for a rate between 20-30% for ecommerce and slightly higher for brick-and-mortar setups is advisable.
Tactical Approaches to Retention
When it comes to tactics for improving customer retention, strategic email marketing (and even direct mail marketing and text messaging marketing) is crucial. Segmenting your email lists based on consumer behavior allows for personalized communication that resonates deeply. For instance, sharing real-life wedding stories with customers who have purchased engagement rings can forge a profound emotional connection – and inspire them to come back for their wedding bands.
Further, re-engaging lapsed customers through heartfelt messages and compelling incentives can rejuvenate your customer base. Celebrating customer milestones and incorporating appreciation tokens enhances the perceived value and gratitude towards loyal customers.
Lisa Nik
18K white gold,
Australian opal and
diamond drop earrings
MSRP $5460
310.729.9760
Promotional Strategies
A balanced approach to promotions, such as exclusive discounts for loyal customers and strategic loyalty programs, can reinforce customer appreciation and encourage repeat business. At the same time, the frequency and nature of these promotions should be carefully managed to maintain brand integrity and value perception.
Community and Engagement
Looking for other ideas? Building a community around your brand through exclusive events and interactive online platforms can also transform casual shoppers into brand advocates. Engaging your community with personal stories, styling tips, and unique experiences enriches the sense of belonging and connection.
At the end of the day, mastering customer retention is about cultivating genuine relationships. By committing to investing in these relationships, jewelry brands like yours can inspire, innovate, and create lasting moments. After all, the loyalty of our customers is the truest measure of our success, serving as both a foundation and a testament to our enduring value.
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