30-Day Customer Retention Experiment
I’ve been in business for about 4 years now in the vaping/e-cig space selling my own collection of e-liquids via online and wholesale. Though I’m not a big player, I’ve been able to make a decent living. In the past few years, I’ve practiced different avenues of marketing from instagram, influencer, content and email marketing to acquire new customers. All have worked well but I wanted to try something different for those repeat customers who as you know make up a good portion of revenue.
I came up with a non-digital marketing plan by sending out ‘Thank You’ gifts to my top 50 spenders from the past 2 years. I figured instead of spending money on more influencer marketing or sending out another email blast asking for a sale, I thought it would be a good idea to send out some free product. I know some of you like numbers so here is a breakdown of what I did:
Defined my target audience by exporting a csv sheet from Shopify of my top 50 customers who:
- Have spent at least $500 or more from my website
- Have been an active customer the past 2 years
- Is US based
- Ship each customer 2 free bottles of juice ($36 retail value)
- Enclose each shipment with a personalized ‘Thanks for your business’ letter with a 25% lifetime discount code (See letter image at the bottom of this post)
- I made sure that each letter addressed their first name
- Made sure each letter was signed by me
- Each letter encouraged to follow my socials, write a product review and email me for any questions
- 100 bottles of 30ml juice valued at $225 (manufacturer costs)
- 50 5x3x2 uline small boxes at $18.50
- First class shipping labels at $121.88 (50 packages)
- About 5 hours of manual labor (free cause I did it myself)
- Total cost: $365.38
First 30 Day results:
-17 out of 50 customers used their custom discount codes
-4 customers bought twice within the 30 day period
-Generated $1710.69 in sales
-Received 3 Thank You emails
I wanted to mention that I have pretty high margins at 85% which enables me to eat a 25% lifetime coupon.
I also realize that my loyal customers are more than likely to come back (even without this effort) in which I could have just waited to get my full margins. However, in a highly competitive vaping market, no repeat sale is guaranteed. I have hopes that by giving them a lifetime 25% discount (along with my personal Thank You) it will have left a great impression on what my company does for their customers which in turn will provide a competitive edge.
Outside of providing awesome customer service, what have you done to ensure your customer’s loyalty?