Use the Expected Date of Next Purchase as a Customer Retention Strategy
Will it rain? Outlook Not So Good. Will we have pizza for dinner? Most certainly yes.
These are the very deep questions I used to ask my Magic 8 Ball as a kid. Today, I rely a little less on magic and more on facts and logic to answer my questions. In my previous role as a beauty marketer for companies with over $1 billion in revenue, one question I would often ask was when will my customers order again. I would try and figure it out by doing all sorts of fun Excel calculations and pivot tables and forecasting… and then get frustrated and make guesses.
Well, Klaviyo just launched a new feature that predicts each customer’s next order date automatically – it’s called the “expected date of next order feature” and is just one of the many customer retention strategies we have available. Yep, a FACT-driven Magic 8 Ball. Buh-bye confusing Excel formulas; hello to predictions backed by actual data science algorithms. You don’t even need to click a button: once a customer makes one purchase we automatically calculate their predicted next purchase date for you. Abracadabra.
Here’s How to Use It
First, make sure that your account meets these criteria – basically, that you have a few months of previous order data and some repeat customers. After all, the system does need data to make a data-driven decision.
Second, put it into action. Here are some examples:
Tell your customers about what’s new at the right time
Diana is the marketing director for Scarves Inc., a $4 million dollar revenue ecommerce website that sells scarves for every season. She has a new spring scarf collection that is launching in two weeks and she wants to send a communication about it to people who are expected to order also around that time. She creates a segment of everyone expected to buy in the next month and then uses her new scarf collection as the featured product content for the campaign email. Her customers are reminded about her fabulous scarves and delighted to learn about what’s new and exciting.
Encourage customers to buy your excess inventory by correctly timing your incentives
Chris has a $2 million dollar ecommerce website that sells men’s sneakers online. He has a lot of excess yellow sneakers that he needs to sell. He also already has an automated email flow setup to reach out to customers around the time they are expected to buy next. He wants to encourage people to buy these yellow sneakers the next time they are expected to order, so he updates the content in this existing flow to showcase some of his bestselling sneakers, but also includes an area in the email with a coupon code for the yellow sneakers. His customers are reminded about his high-quality sneaker selection, and some may be encouraged to buy the yellow sneakers with the coupon code incentive.
Recoup sales from customers who need an extra nudge to come back
Vivienne is the senior marketing manager for a $15 million dollar ecommerce website that sells trendy women’s jewelry. Her customers love her products, and many return frequently to buy them. Using the expected next order date information, she can identify customers who should be ready to make their next purchase, but haven’t.
She creates a flow that targets customers who are two weeks past their expected purchase date and haven’t bought anything recently. She offers them free shipping to encourage them to make that delayed purchase. As a result, many of those customers do purchase again, and Vivienne recoups lost sales.
Want to better predict customer orders and take advantage of other personalized marketing automation and customer retention strategies? Sign up for a Klaviyo demo here—it’s hassle-free and fast to implement.Back to Blog Home