The Retention Dashboard contains analysis of Daasity's out-of-the-box customer segmentation model
The Daasity Retention Dashboard was developed to help you better understand how well your company is retaining customers by getting them to repurchase. Daasity provides merchants with out-of-the-box customer segmentation that can be used as a building block for both understanding your retention performance and also for creating new retention strategies.
THE IMPORTANCE OF IMPROVING CUSTOMER RETENTION:
Retention is critical to efficiently growing a direct to consumer organization. Getting an existing customer to return to your site and purchase again is almost always immediately profitable and in some cases highly profitable. In addition, since these are customers that you have already acquired you have a wealth of information that you can use to better target these customers to show them the products, prices, or offers that are most likely to get them to come back and buy from you.
Customer acquisition rightfully gets a lot of attention; it's often the largest single expense on a direct to consumer company's P&L. But without a strong retention strategy you will find that your growth is limited.
The first step to enhancing your retention campaigns is to start segmenting each campaign so you are sending different products, pricing, and messaging to different customer segments based on their preferences. Our HVC / multi-buyer / single buyer segmentation gives you an easy way to start segmenting your campaigns to see better retention results. More advanced steps are covered in our intro to customer segmentation lists and our Audiences feature.
To start with Retention, one needs to understand the concept of Customer Segmentation and how to use behavioral data to help build segments. One of the easiest methods is through the use of RFM (Recency, Monetary and Frequency). A simple segmentation would group our customers into several different buckets.
- High-Value Customers (HVC): our best customers that spend a lot, repurchase often, have purchased recently and are customers that we want everyone to become
- Churning High-Value Customers: they used to be our best customers but it has been almost 12 months since they last purchased and we are at risk of losing them
- Multi-Buyer: customers that have purchased twice in the last year. Customers in this group may become our best customers if we can understand what will get them to come back and purchase again
- Single-Buyer: someone that has bought once in the last year
- Lapsed Multi/High-Value Customer: It has been over a year since they purchased and we need to re-engage them as they used to valuable
- Lapsed Singles: essentially lost customers as they only bought once over a year ago
Looking for more? Check out this video walkthrough from our CEO!
The Retention dashboard is split up into five sections:
- Performance by Customer Segment
- Segment Counts and AOV by Segment
- Time Between Orders
- Customer Movement and Historical Performance
- MTD Retention Performance Details
This dashboard and the Daasity customer segmentation can help answer the following questions:
- How can I segment my customer base to better reach them? Our out-of-the-box customer segmentation gives you an easy way to start segmenting your email / SMS / other retention campaigns.
- Which customer segments are contributing to orders and revenue this month? If too much of your revenue is coming from new customers then you may have a retention problem.
- What is the average time between purchases for your customers? This can help you decide how often to send emails / SMS campaigns to different segments.
- Which products are purchased when customers repurchase? This can help you decide which products to feature in your email / SMS campaigns.
DATA EXCLUSION:We exclude all Wholesale orders and customers from our Retention calculations
Performance by Customer Segment
These two visualizations show current and last month to date performance (gross sales, orders, AOV, units per order, and average unit revenue) for each customer segment. For these visualizations, customers are tagged into a certain segment at the beginning of each month and they stay in that segment for the remainder of the month regardless of how many purchases they make. Note that this is NOT how the general customer segmentation works which is updated for every customer every day.
The MTD Retention Performance visualization shows performance for each segment for the current month through yesterday. The Last MTD Retention Performance visualization shows performance for each segment for last month through the same number of days. As an example, on the 18th of January the first visualization is showing performance through Jan 17th and the second visualization is showing performance through Dec 17th.
HOW TO USE THESE VISUALIZATIONS:
These visualizations function as a bellwether to understand which groups of customers are buying from you in the current month and the different aspects of their purchases like AOV. With the exception of very young brands that don't have a large customer base (for example, brands that have been live for less than six months), most brands want to see a high percentage of their revenue in any month coming from existing customers. How large that percentage should be depends on a lot of factors (the product type, pricing, how long the brand has been live), but in general you would like to see at least 50% of your orders coming from existing customers. And the more customers you convert from single and multi purchasers into HVC customers, the better.
Segment Counts and AOV by Segment
These two visualizations show how many customers fall into each segment, as well as their AOVs for the last completed month for this year, last year, and the year prior.
NON-BUYER CUSTOMER SEGMENT:
The non-buyer customer segment contains all customers for which you have collected an email, but they have not made a purchase. This includes customers that might join your email list through your Shopify site, and customers that make a purchase that is later cancelled or voided.
Time Between Orders
These two visualizations show average time between 1st and 2nd purchases and average time between all orders for different customer segments.
HOW TO USE THESE VISUALIZATIONS:
As you start segmenting your retention campaigns, cadence, or how often you are sending campaigns, is an important factor. Some segments may repurchase at shorter or longer time intervals. These visualizations allow you to see exactly when you need to be targeting different segments based on when they are most likely to repurchase.
Customer Movement and Historical Performance
These visualizations allow you to see how customers are moving between segments. It's important to make sure that you have customers moving from your single buyer segment into the multi-buyer segment, and customers moving from your multi-buyer segment into your HVC segment. It's also important to keep an eye on the HVC segment and make sure that these customers aren't all moving to your Churning and Lapsed groups.
CHURNING HVC CUSTOMERS:
This segment is one of the most important segments to make sure you are targeting aggressively. These are customers that have purchased multiple times and used to be great customers, but they have not made a purchase in almost 12 months. If you see a lot of your HVC customers moving to the churning group, try to target that segment with special offers and unique content or products, or try to reach them through different marketing vendors if they aren't responding to email or SMS. Keeping them engaged and repurchasing is key to maintaining high repurchase rates, increasing LTV, and keeping overall company CPOs low.
MTD Retention Performance Details
These visualizations are designed to show you which marketing channels different segments are using to find your site, and which products different segments are purchasing. These can help you understand which vendors to use to target different segments, and which products to feature in your retention campaigns.
The retention dashboard requires a Shopify or other order source integration that includes customer details.
MTD Retention Performance by Customer Segment
Last MTD Retention Performance by Customer Segment
Customer Segment Counts
AOV by Customer Segment - Change Last 36 Months
Average Days 1st to 2nd Purchase by Customer Segment Last 24 Months
Average Days Between Orders by Customer Segment Last 24 Months
Gross Sales by Customer Segment Last 3 Years
Customer Segment by Month Last 3 Years
Customer Movement - Last Year vs Today
Retention Orders by Customer Segment and Channel
Top Retention Products - High Value Customer
Top Retention Products - Multi-Buyer
Top Retention Products - Single Buyer
Top Retention Products - Lapsed Buyer