By: Aaron Orendorff
You already know how much customer retention matters to your bottom line. And—if you read last month’s Measuring Customer Retention: Five Magical Metrics to Demystify ROI—you also know the KPIs and formulas central to tracking it.
What you might not know is how to apply these metrics to keep the one group who matters most to your long-term success happy and loyal.
Why?
Because it’s one thing to know what to measure. That’s the easy part. Knowing how to optimize all that data with the right customer retention tools … that’s another beast entirely. Thankfully, it’s a profitable one.
That’s exactly what this post is all about: helping you pick the right tools to track and measure customer retention whether through sales, social, an app, or your marketing.
To do that, we’ll examine five types of retention tools, the metrics they measure, and a real-world example of each tool so you can see it in action.
#1 Native Ecommerce Dashboards
Native ecommerce dashboards are the default analytics tools that come with any major online platform.
But don’t let the word “default” fool you.
As far as customer retention goes, native dashboards are a powerful source of insight for two reasons. First, they’re built directly into the platform you’re using to sell your products. Configured correctly, they provide the most accurate and up-to-date information available. Second, their data can be transferred to many of the tools we’ll cover below to amplify their insights considerably.
On native ecommerce dashboards, four of the five key metrics covered in the previous article should not only be clearly identified but also prioritized:
>> Average order value (AOV)
>> Customer Retention Rate (CRR) and Customer Churn Rate (CCR)
>> Lifetime Customer Value (LCV)
>> Customer Segment Values (CSV)
Often, you’ll need to create your own custom segments to delve into CSVs more thoroughly. These segments should be based on number of orders—i.e., first-time versus returning customers—order sizes—high, medium, and low value (for instance)—and order frequencies. Creating these groups lets you focus your attention on moving low and mid-commitment customers up the LCV ladder as well as treat your best customers to concierge-level service.
What does this look like in practice?
Ecommerce Customer Retention Tool:
Shopify
Shopify’s “Overview dashboard” presents the first two metrics mentioned above as part of its default settings:
(1) “Repeat customer rate” (for tracking CCR and CRR) and
(2) “Average order value,” which you can export or customize based on specific time frames and other variables:
Raed More >> https://postfunnel.com/customer-retention-tools-ecommerce-saas-apps-plus-optimize/
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