Customer Retention Strategies for Retail and D2C

By: Yukta Debnath

Growing a sustainable business means focusing on customer retention. Implement retention strategies to understand how loyal and satisfied your customers are, your customer service strengths, and your areas for improvement.

The lack of customer retention strategies has become the bane of some businesses. Despite the fact these businesses can attract customers, retaining them is a problem. As a result, they will generate low revenue, which might negatively impact the financial stability of your company. With no significant revenue coming in, the business will face the threat of going under.


Customer retention is the ability of D2C brands to increase repeat business. Existing customers will continue purchasing from you without switching to another supplier. Due to poor customer retention strategies, many D2C brands end up losing most of their customers.

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Customer Retention Metrics

Measuring your customer retention strategies can help you understand their success. Below are some of the metrics you can use:

1. Purchase frequency

  • Purchase frequency refers to how often customers buy your products within a specific time. Usually, it allows you to understand customer behavior. With such information, you know how best you can target your customers to trigger more purchases.

2. Repeat Customer Rate

This is the percentage of the customers that return to a D2C brand or company after the first purchase. The repeat customer rate enlightens you on the output of the innovative d2c marketing strategy. You can tell how best you can enhance your marketing strategy to achieve more repeat business.

3. Average Order Value:

It evaluates the online marketing performance and pricing. The average order value gives you the money customers used on purchases. You can calculate it by dividing total revenue by the number of purchases or orders.

Types Of Customer Retention Strategies

Any company or business needs to go the extra mile to achieve customer stickiness. Doing the bare minimum will not increase any repeat business. To retain your customers for a d2c business, you must use effective strategies.

Whatsapp is an avenue you can use to apply your customer retention strategies. Businesses can take advantage of its features to improve customer engagement and retention.  Below are some of the strategies you can put in place with the help of Whatsapp:

1. Foster Productive Customer Relationships

Customers need to feel valued throughout their purchasing journey. If they have any questions, you have to respond within the shortest time possible and in kind. And this is where WhatsApp business comes in handy.

You can set automated responses that enlighten your customers about how best to use your products. You can also answer any questions they have so that they have clarity on how to place orders. They will have a favorable customer experience, improving their trust in your business.

The benefits of a productive customer relationship include receiving customer feedback. Customers will tell you which feature they prefer in your products. You learn their tastes and preferences, which helps you achieve customer satisfaction. This is all possible through WhatsApp conversations you have with your customers.

2. Utilize Customer Data

Customer data includes names, emails, location, preferences, and contacts of your customers. Interactions with your customers through WhatsApp will help you mine some of that crucial data. You can use the data to use customer retention strategies to boost customer engagement.

With customer contact details, you can easily reach out to them with promotional messages via Whatsapp. However, there is a catch. Keep your promotional messages to a minimum if you communicate with your customers via WhatsApp. You need to get their consent to send the WhatsApp marketing campaigns. Use that opportunity to sell your business by sending educational, promotional messages. For instance, you can educate your customers on how they can purchase and use your products.

Do not use customer data for malicious gains. That is why you need to have an opt-in feature that allows customers to agree to share their information with you on WhatsApp. Use that data to improve the customer experience to retain your customers.

3. Provide Personalized Customer Experience

Understanding your customers at a personal level is a plus. They will appreciate the concern you have, and that automatically builds trust. And this is where personalized customer experience is crucial. Every customer has different tastes and preferences. That is why you need to understand their behavior to provide goods and services that meet their demands. You can do so courtesy of WhatsApp conversations. As you engage with your customers, get to know their tastes and preferences. Know which products they frequently purchase so that you ensure they are in stock always when the need arises.

You can also plan personalized messages using WhatsApp templates. Include their names, some of the specifications they need in the products they are purchasing, and assurances to meet their needs. Most customers prefer companies that offer shopping experiences tailored to meet their demands.

4. Develop Customer Loyalty Programs

Customers who continually buy from you are an asset. That is why you have to go the extra mile to retain them. You can identify such customers, then create a customer loyalty program. Use the programs to provide incentives to encourage more purchases and repeat business. 

For instance, you can have discounts for some of your loyal customers. A cut price on the products they love will encourage them to buy more. And that will significantly boost customer engagement and drive up your sales. Some of the customers you can have in your loyalty program are those who have given you consent to receive promotional messages. You can add opt-in features to WhatsApp business API to create a customer list for promotional messages. So, you can always inform them early enough if you have offers or discounts.

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"As the D2C ecosystem evolves, enablers become very important. Really excited to see what the BusinessOnBot team is building to provide a seamless, hassle-free customer experience and I’m proud to support them on this journey!”
Arjun Vaidya - Dr Vaidya
Arjun Vaidya

To Sum up..

Customer retention should be a priority of any D2C brand or company. With WhatsApp, the business can enhance customer retention strategies and boost engagement to encourage repeat purchases. Customer engagement strategies include creating loyalty programs, fostering productive relationships, and exploiting customer data.  Such strategies will ensure you have more customers not backing down from you. But that means you must continually consider your customers’ concerns and strive to address them always in the best way possible.

READ MORE: Creating Facebook Custom Audience with your Customer List


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