The Daasity Retention Dashboard was developed to help you better understand how you're performing in retaining customers and/or getting them to repurchase. Retention is critical but can be an easily overlooked area in marketing.
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 purchase the most, 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 a while since they last purchased and we are at risk of losing them
- Multi-Buyer: customers that have purchased twice in the last year. Could be our best customers if we could just get them over the edge
- 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!
Once customers have been categorized (into segments) it is important to understand how each segment has performed over time. The key is to target each segment. When thinking about retention, you don't want to treat everyone the same. You want to send each segment the correct message, the best product, the best offer, and making sure it's at the best time. This will assist in achieving the ultimate goal. Getting the customer to make another purchase and move them closer to becoming an HVC.
Additional info can be found by accessing your Retention Dashboard. We've created helpful examples, definitions, and descriptions next to your visualizations (example below).