Retention rate is the key for eCommerce websites more mature than 1 year old. 1% of your best customers are generating 30x more revenue than the average customer. How to monitor it properly & how to grow it? This presentation was held by Valentin Radu, CEO & Founder at Omniconvert at GPEC Summit 2017

1. How to hack your
retention rate

2. 1. Acquisition vs retention?
2. RFM Model
3. Retention hacks
4. Let’s get to action

3. > Serial entrepreneur from Bucharest, Romania
> Passionate about psychology, data, relations & change
Valentin Radu
CEO & founder Omniconvert

4. WHAT DO WE REMEMBER
?
My life tests:
> 17 different jobs
> 4 companies
> 30 relationships
> raising 2 kids
> (Thank God!) - having one wife

7. eCommerce is not a
one-night stand

8. is about
generating emotions

9. is about
habit-forming

10. is about
word-of-mouth

11. Being data-driven

12. And not acting
on old
assumptions

14. “After 24 months, 50% of the revenue is
generated by returning customers”

15. Sursa: https://www.shopify.ca/blog/18048996-acquisition-vs-retention-should-your-ecommerce-business-play-offense-or-
defense

17. Intr-un e-commerce matur...

18. The average retention rate
Is 30%

19. If you have an eCommerce with a YoY
growth of 50% for new customers

20. 60% retention rate
40% retention rate
20% retention rate
10% retention rate
Year
1
Year
2
Year
3
Year
4
Year
5
Year
6

21. After 6 years, 90% of the revenue is
coming from returning customers, at 60%
retention rate

22. Retention hacks

23. Don’t start unless it’s a priority
0

24. https://goo.gl/8Ttyv9
Monitor
the right
KPI’s
1
2
3
4
5
Set strategic
goals
Strategic
Initiatives
Prioritise
Execute & repeat

25. Strategic initiative
OS 1:
increase
NPS to
75
OS 2:
Increase
AOV to
$120
OS 3:
Increase
LTV to
$3400
OS 4:
Increase
conversion
rate to
1.4%
OS 5:
Increase
retention
rate to
65%
OS 6:
Increase
traffic to
500k/
month
Total
impact
score
Personalized thank-you letter
after the first order 5 1 3 0 0 0 9
PPC Hacking 0 0 0 0 0 4 4
Build / hire a growth team 3 2 2 3 3 3 16
Conversion rate optimization audit 1 1 2 3 3 0 10
Activate a new payment method 0 0 0 2 2 0 4
Find out the conversion killers
with on site surveys 1 0 1 3 3 0 8

26. https://goo.gl/8Ttyv9

27. Use a proper methodology
1

28. Build your
RFM model
Analyze the impact
(NPS, Retention, LTV)
Don’t stop until you
have 100 ideas
Run surveys for each
important segment
Hygiene step:
Treat the pains
(product / services)
Start brainstorming
based on your budget
Cosmetics step:
Do the math - how much
can you invest to keep a
customer vs to acquire a
new one?
Execute
Restart

29. Find out the why
2

30. How many of your customers
are placing the 2nd order?

31. Why?

32. From the ones which are not ordering anymore, how
many are not placing an order because of
> your products
From which categories?
Bad quality / false expectations?
> your services
Delivery time, experience, return policy, packaging, etc?

33. Can you eat
“ciorba”?

34. With this?

35. How to do this?
> On-site surveys
> Post-order emails
> Post order remarketing FB ads

36. Build an RFM Model
3

37. Recency - How recent is the last order?
Frequency - How often that customer bought?
Monetary Value - What is the total revenue you got from the customer?

38. Customer Recency Frequency Monetary Value RFM
John Doe 3 4 2 9
Joan Doe 2 3 3 8
Geena Doe 4 1 1 6

40. How can we use an RFM model?

41. Identify the best customers
Proper loyalty program
Higher retention rate
Higher revenue
Happiness, maybe

42. https://goo.gl/Co4ZyA

43. Under-promise, over-delivery
4

44. Hand-written thank-you letter

45. Surprise gift

46. That’s for you to understand how happy
we are that you’ve placed your second
order on our website.

47. Courtesy call after the 1st order

48. A welcome-back surprise according to
DBT (days between transactions)

49. Free returns vs Free delivery
5

50. Your extra-revenue =
new returns - new conversions + new returning customers

51. Stand out for something
that’s more valuable
6

54. 24 hours after...

55. Your homework
1. Emotions will build relations
2. You should make someone responsible for retention
3. Focus on habit-forming
4. You can’t grow retention (and anything else) if you
don’t monitor it. What you don’t measure, doesn’t count
5. Be good

56. Scrisoare de multumire scrisa de mana
Questions?

57. Valentin Radu
www.omniconvert.com
https://uk.linkedin.com/in/valentinradu
Thank you!