Why Retention is key to your brand longevity
Across all segments in fashion, there has been a major gap in businesses' ability to retain customers for more than a one-off purchase. According to recent estimates*, 70% of buyers never come back for a second time.
Yet despite this, brands still continue to invest a lot of their budget in acquisition. But without retention, they can’t build on those audiences and compound their revenue. Brands who know how to compress the time between first and second purchases are the ones who have the acquisition/retention balance right.
The current landscape
Acquisition costs are up – as much as 222% compared with 10 years ago* and return rates are astromonically high. But retention is neglected – seen as “spammy” or an investment only possible for luxury brands.
Here’s what we’re seeing across the board:
- 70%+ of customers don’t return after their first order
- The second purchase is the pivot point to long-term value; just a 5% uptick in loyal customers can boost profits by 25% to 95%
- Customers are overwhelmed (and spoilt) with choice, so brand loyalty isn’t a given, even if they buy from you once
Retention strategies to implement now
A retention strategy is far more than a spontaneous 10% discount code to your existing customer base. And while there are some strategies that involve greater effort and input, there are also plenty of simple tools to implement to get this part of your business going.
No matter what, intentional and data-driven retention is needed. Things like:
- Smart email & SMS (via Klaviyo) with actual timing, logic, and tone
- Loyalty and review loops (via Yotpo) that reward behaviour, not just orders
- Pre-purchase flows that allow you to collect data before and nurture the audience so that you can build brand trust and loyalty
- Data driven personalisation through segementation and behavioural triggers
- Post-purchase flows that create momentum, not silence
Keep it clear and simple; the right message, at the right time, to the right customer.
The outcome of Retention strategies
When brands take retention seriously, everything gets easier:
- Higher repeat purchase rates
- More margin from existing customers
- Less dependency on volatile ad platforms
Quite simply, retention isn’t something you can afford to neglect in this dynamic and volatile landscape. It’s not just a phase, it needs to be a continuous part of growth.
Your next steps
We understand the importance of retention. Our team is dedicated to guiding clients in turning one-time buyers into repeat customers using tools such as Klaviyo, Yotpo, and Voyado.
Get in touch to discover what retention strategies could help sustain your long-term success.
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Why Retention is key to your brand longevity
Across all segments in fashion, there has been a major gap in businesses' ability to retain customers for more than a one-off purchase.
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