According to Shopify, 44% of total revenue and 46% of orders come from your most loyal customers, who total just 21% of a brand’s customer base.
This is why we are so excited to team up with our friends at Ryder E-Commerce by Whiplash. We are both hyper focused on retaining and growing our merchants’ existing customers through delightful post-purchase experiences that keep customers coming back again and again.
Why is this absolutely crucial for e-commerce brands operating in 2022? Continue reading…
The days of first-purchase profitability are long gone.
Do you know how much money you’re making when a new customer purchases one of your products? If you’re like most e-commerce merchants, you’re actually losing money on that first purchase – and those losses are increasing.
In 2013, the average e-commerce brand lost $9 on every new customer order. Today, in 2022, that figure has risen to $29.
There are fundamental shifts taking place in the e-commerce marketplace and the broader economy at large that are driving up customer acquisition costs. A few of the largest factors are:
These trends have led to Customer Acquisition Cost (CAC) rising by as much as 60% in the last couple of years alone, and this is likely to continue. Brands must figure out a way to continue growing, while knowing that new customers will be harder to win and more expensive to acquire.
Fortunately for e-commerce brands, there is light at the end of the tunnel: The power of retention. We all know that it is – and always has been – significantly cheaper to drive repeat customers than it is to acquire new ones. And that gap continues to widen. Retention is how brands in this new age of retail will survive and prosper.
How do we know? While the cost of acquiring new customers has multiplied over 3.2x since 2013, the opposite is true for returning customers. In the same time period, profits from repeat customers have increased by 36%. Best of all, it doesn’t take a huge lift in retention to see a major impact.
Supply chain disruptions and increased competition are two of the leading causes of rising CAC and customer churn. To help lower CAC and customer churn, we’re teaming up with Ryder E-commerce by Whiplash. Not only are we here to help e-commerce merchants mitigate losses; we’re also helping them thrive and grow into the future.
“Where is my order?” is the #1 question that e-commerce brands receive. With that in mind, generic order-tracking emails and carrier-tracking pages no longer cut it.
Malomo is an order-tracking solution that gives brands full control over the post-purchase experience and allows them to communicate proactively with customers via real-time shipping updates. Proactive shipping updates and branded experiences not only contribute to increased customer satisfaction; they also drive tremendous revenue. Malomo clients see a 50% reduction in WISMO tickets and a 3% repeat purchase rate, driving an incremental lift in retention and LTV.
84% of customers will not return after just one bad shipping experience. By combining best-in-class vendors, Ryder E-commerce by Whiplash and Malomo brands will greatly reduce the risk of losing customers post-purchase. Not only that; they turn what used to be a cost-center and weak touchpoint in the customer journey into a revenue channel that drives brand affinity.
Through Malomo’s proprietary Problem Orders data that merchants can access through our platform, we’ve been able to identify that merchants using Whiplash fulfilled orders 2.2x faster than all others in October 2022.
To learn more about our partnership and how one of our mutual merchants drove $120k in new revenue through their post-purchase experience in just 10 weeks, check out our partner page.