Driving Customer RetentionA survey conducted by Harvard Business School stated that a 5% rise in direct-to-consumer (D2C) loyalty could generate 25% more profits. Nike is an exemplary case study of this principle; the company attained over $16 billion from D2C alone during 2020, up from an impressive $6.6 billion five years prior. Additionally, repeat customers make up 40% of your average sales – it’s obvious to observe customer retention brings more significant revenues than acquisition does! This information is then used for generating a customized retention plan for the brand, complete with recommendations on improving both CLV and CAC. In addition, the tool also provides insight into which channels are most effective for acquiring and retaining customers. While there is no silver bullet for increasing retention rates, Wigzo’s growth rate calculator can be a helpful tool for D2C brands looking to improve their performance in this area. By using data to understand their customers better and create tailored retention plans, brands can give themselves a much better chance of success.
Customer Growth Rate & Growth Rate FormulaThe customer growth rate is a measure of the change in the number of customers over time. It is typically expressed as a percentage and can be used to track the growth of a business over time. The customer growth rate formula is as follows: (Number of customers at the end of period – Number of customers in the beginning) / Number of customers at the beginning of the period x 100 The customer growth rate is an important metric for businesses to track as it can give insights into the health of the business. A high customer growth rate may be an indicator of a healthy business, while a low customer growth rate may be an indicator of a struggling business.
The Verdict for D2C BrandsGaining insights into customer acquisition, conversion and retention are essential for businesses to grow. Wigzo’s growth rate calculator can help D2C brands understand their customers better and create tailored plans to improve both CLV and CAC. The data provided by the tool will provide valuable insights into which marketing efforts are paying off, where adjustments need to be made, and which channels are most effective for acquiring and retaining customers. With the help of Wigzo’s growth rate calculator, businesses can measure their customer growth rate more accurately over time to ensure they are on the right track for business growth!
Growth Rate Calculator