How To Solve The Customer Retention Puzzle For Your D2C Business

How To Solve The Customer Retention Puzzle For Your D2C Business

While D2C companies undoubtedly represent the snazzy new guy, how do they expand sustainably and surpass rivals & market leaders? By achieving a high rate of retaining customers, for sure.

Companies put a lot of effort into targeting consumers with advertising, social media, and marketing initiatives. It seems reasonable that you wish to keep your consumers once you have put in great effort and perhaps money in earning their confidence. That is when a heavy emphasis on customer retention and building loyalty is advantageous.

As per research, businesses can reduce their expenses by 30% and gain revenue by up to 20% by providing consumers with meaningful information & adding value throughout the sales funnel.

What will you discover here? – How D2C brands can maximize customer retention and accelerate conversions with the appropriate expertise during digital maturity. Prepare to jump in!

Why is customer retention & loyalty so important?

  • 12-15% of devoted customers can increase a brand’s revenue by 55-70%. Your brand is backed by loyal customers, which helps you make more money.
  • They usually tell their friends about your company and provide them favourable feedback.
  • In comparison to attempting to attract a new customer, repeat consumers have a higher return on investment.
  • Higher retention rates are always correlated with loyalty. Because of the higher profit margin that results from this retention, the company will have a stronger crux.

Strategies to improve conversions & retention

Know your metrics 

Five major metrics are used to measure conversions & retention. Lifetime Value (LTV), Average Order Value (AOV), Purchase Frequency, Customer Acquisition Cost (CAC), and Repeat Customer Rate. The evaluation of these metrics can help you assess your customer from a 360-degree viewpoint. 


A D2C business first focuses on acquiring customers as it transitions from an offline to a digital context. Utilize a variety of ways to interact with your consumers, including SMS, WhatsApp, email, onsite alerts, and polls. Leverage basic applications to increase conversions, such as cart abandonment campaigns and follow-ups for restocking solely to customers who fail the average duration between purchases threshold. 

Nudge (gently) cart abandoners to finish their purchases by sending them alerts via WhatsApp, SMS, or the website.

Leverage the data

The customer’s interest in your brand is now extra centred. They are curious about you, your products & services, and their usages. Here, you can gather more personal data from customers, allowing you to deliver content and solutions that are specifically tailored to their needs. 

Before they even start the checkout procedure, shoppers are said to have made up their minds to purchase from your business 75% of the time. FAQs that answer all questions, goods “how to” manuals, showcases, and remedies for frequent “issues and problems” can influence or sway customers’ buying decisions.

Get personal! Wish them on their birthdays and remember the important dates. Never stop leveraging moment marketing. 

Make the experience unforgettable

To optimize their customer experience, businesses begin to indulge in incredibly advanced systems and tools like marketing automation tools. They now possess the power to provide multi-channel customer experiences at pace while also having a single picture of their consumers.

Send every user a fully couched, bespoke campaign. Whenever a product is restocked, or a sale starts, for instance. Users should join with only one click by using their social network accounts. Make your payment gateway form swift, easy, and pleasant after your customer clicks to check out. This involves not requesting excessive data and offering various alternatives for standard and non-standard payment preferences.

Your business is now profitable 

Your digital maturity is now at the advocacy stage since your consumers have turned into supporters. Your LTV is already significantly greater than your CAC. To accomplish the same predetermined goals, the teams collaborate well. You are constantly seeking new methods to maximize your brand awareness.

However, you should keep marketing. After conversions, value-adding continues. Sending customers personalized newsletters, deals, discounts, targeted email campaigns, and other things will help you build a loyal customer base.

Customers should be assured that you will be available post-purchase.

Summing up

What do people want, exactly? What do you, as a D2C brand should, do? You’ll learn from the data. 

You can benefit from paying attention to certain metrics that show consumer interest and engagement with your marketing channels and campaigns. By analyzing this data, you can identify the parts of your sales pipeline where you are haemorrhaging prospects, allowing you to eliminate or modify any barriers standing in the way of their purchase.

Analyze the following site information to assess the effectiveness of any tweak you apply to the customer’s path via your website. It will let you evaluate the sustainability of several variants of your website and decide which update to implement based on its capacity to produce the biggest returns.

Take what you learned from this piece to assess the buyer’s journey and improve it for greater conversions and retention.

Parth Kapoor

Parth Kapoor

Parth is a computer science graduate from the University of Delhi. He is a Manager - Customer Success at Wigzo and having over 4 years of experience in the e-commerce and SaaS industry. In his spare time, you will find him reading about the latest tech and playing games.

Related Blogs