Customer Identification, The Starting Point Of Customer Retention

Did you know that 64% of global fashion shopping still happens offline ? The challenge lies in turning one-time shoppers into loyal customers. While there's no magic answer, we've got some exciting tracks for you to follow that can supercharge customer engagement!

1st Step: Identification, The Starting Point Of Customer Loyalty

Imagine a world where you can communicate with your buyers without breaking the bank on paid ads. The first step? Collecting their digital opt-ins! Here’s how: 

• Loyalty Program: Offer exclusive benefits like discounts or private sales to customers who sign up digitally. 
• QR codes with incentives such as discounts to encourage customers to sign up. 
• In-Store Events and Contests: Get creative! Organize workshops or contests where customers digitally sign up for a chance to win. 
• Online Surveys: Everyone loves giving their opinion. Encourage online feedback in exchange for special offers or discounts. 
• Interactive Payment Terminals: Make signing up a breeze during in-store payments. 
• Newsletters: Ask your customers if they’d like to sign in to your awesome newsletters

2nd Step: Know Your Customers For Personalization

Today’s consumers demand more. Sending generic emails or providing a subpar user experience can lead to customer churn. Get to know your customers by collecting personal and shopping history data. 

The singular path to achieve this goal is by establishing a seamlessly integrated loyalty program that syncs with both your CRM and POS system. 

Collect Personal Data

In the present day, a digital loyalty program can effortlessly assist you in gathering all the essential personal data necessary for gaining a deeper understanding of your customers. 

• Birthday date 
• Age 
• Location 
• Family structure (number of kids, married?) 

Use “FLYX BOOSTER” features to incentivize actions like in-store visits or filling out personal data. 

Here are tangible instances of the “BOOSTER”: 

Example 1

“If you provide your personal details, you’ll unlock a fantastic 30% discount on your next purchase.” 

Example 2

“Happy birthday! To celebrate your [Personnalized Data] years, you have one month to visit our shop and enjoy a generous 20% discount.”

Upon gathering these personal details, you kickstart the customization of your communications and promotions. The era of mass communication is behind you; consumers now crave personalized interactions. Your brand is expected not just to reach them but to connect with them on a personal level.

Collect Purchase Data

The benchmarks for user experience and personalization are set by industry giants like Netflix, Amazon, Spotify, Youtube, Facebook, and more. From a consumer perspective, receiving irrelevant communications or promotions is no longer acceptable. Sending an email promoting children's products to someone without kids or offering a coupon for shorts to someone who never wears them is simply out of sync. Customization standards have elevated, and your brand must deliver the same level of personalization as industry giants like Google. 

There’s a straightforward approach to achieve this level of customization: establish an integrated loyalty program with your POS system. 

This integration empowers you to gather comprehensive data, both online and offline, regarding your customers’ purchases. This includes details such as the last purchase date, ticket value, product types, and purchase frequency. 

By integrating both systems, you gain the ability to run personalized campaigns across different segments: 

• Reward your loyal customers with points and rewards. 
• Awaken dormant customers with personalized coupons. 

• Deliver personalized communications and promotions. 
• Boost the average baskets of returning customers with enticing product combo offers (buy 3, pay for 2). 

This accessible data allows you to significantly enhance the conversion of your campaigns. Without the need for an extravagant budget like that of tech giants, you can effortlessly create a stunning customer experience that genuinely fosters engagement. 

Benefits Of Personalization And Customer Engagement

Customer retention is not merely a concept to consider for driving growth. While the majority of fashion retail players emphasize acquisition, the most successful ones prioritize leveraging their existing customer base to fuel their growth. To underscore the significance of prioritizing retention over acquisition, here are some compelling figures:

• The probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is only 5% to 20%. 
• It costs up to 7x more to acquire a new customer than to retain an old one. 
• Increasing customer retention by 5% increases profits by 25-95%. 
• 65% of a company’s business comes from existing customers. 
• Loyal customers spend 67% more than new ones. 
• Existing customers are 50% more likely to try new products and spend 31% more than new customers. 

Source : 11 Customer Acquisition vs Retention Statistics (2023)

Integrated Loyalty Program, The Must-Have Solution

Finally, establishing an integrated loyalty program will enable you to:

• Decrease paid ads budget 
• Decrease dependence on customer acquisition 
• Increase communication channels : mobile app, marketing emails, push notifications 

• Improve personalization for higher conversion 
• Increase revenue through cross-selling offers 
• Increase margins 

If you’re unsure where to start, our experts at FLYX are ready to guide you on the journey to excellence in customer identification, engagement, loyalty programs, and retention. Let’s create a powerful customer journey together!