Customer retention is an important key for any ecommerce merchant who wants to build a sustainable ecommerce business - where customers are shopping often and continuously engaging with your brand.
However, knowing when and which customers need to be re-engaged used to be a question that normally needed quite a bit of data calculations and manual work. But not with Omnisend! With our Customer Breakdown by Lifecycle Stages, you can easily see who and why need to be re-engaged so you can focus your efforts to keep your most valuable customers coming back for more orders.
Omnisend dynamically assigns each customer a lifecycle stage based on their historical shopping frequency, recency, and spend - e.g. you'll know which shoppers have high repeat purchase potential, who need a little extra nurturing, or who are your true champions. You can use these lifecycle stages as stand-alone filters for segment creation or combine them with even more rules if you want to narrow down your audience even further. From there, it’s easy to prioritize building special reactivation campaigns and automations to keep your return customers’ share growing.
Improve your new and existing customer understanding with our retention report. Keep track of your retention rate, gain customer behavior insights, and adjust your retention strategy in a data-driven way. Our retention report will help you to understand your current level of retention and then keep track on the change after you apply some new retention strategy.
Note! The oldest point that you can choose is a year ago. Also, the system analyzes the historical data of 2 years earlier from the date you’ve chosen.
Customer lifetime value
To track individual customer's potential you can open his/her contact profile in your Omnisend Audience and check Сustomer Lifetime Value (CLV). You can see Revenue metric that shows how much revenue this customer has brought to you. Orders metric shows how many orders this customer has placed. Average order value shows how much this customer has spent on average on each order that he has placed. Predicted customer lifetime value shows future revenue of this customer. Predicted revenue is calculated for each brand based on other customers' metrics. Keep in mind, for you to see CLV stats for customer, he/she needs to place at least 1 order. In addition to CLV metrics, you can also see text snippets. These insights tell if a metric value of a particular contact is above, below, well above, well below or on avg. with the brand/store averages comparing to last 365 days average.
Note! It's not possible to segment by CLV stats for now, but we have a plan to add such option. As for now you can use Lifecycle stage segmentation. It's not possible to export the CLV stats too.
You can find the overall stats of your business, as well as customers' lifecycle under the Customer breakdown tab in the Audience section.
Note! We remove so-called 'outliers' when looking for average order value or average time between repeat orders, this makes our data and classification of customers more accurate. For example, if the trending averaging order value for your store is around $100 and a customer places an order of $1000, it won't be taken into account, when calculating the average order value.
Using the Lifecycle map, you can monitor the distribution of customers between different lifecycle stages. Also, you can track movement between different stages to understand your customers better.
For example, if the customer has made just one order - he or she will be identified as a 'recent customer'. If such a buyer doesn’t make an order for a certain amount of time, they will fall into the 'need nurturing' stage, later 'at risk' and finally they will be classified as 'about to lose'.
You might ask how do we define which category customer should be in. The transition from a recent customer to a customer that needs nurturing (same for champions or loyalists) happens when a specific amount of days lapse from the last order. We determine this number of days by looking at the typical behavior across all returning customers in that particular store. So, it’s personalized for each store. Here's how we define the typical behavior for each brand:
For each customer:
Recency (days since last order)
Frequency (number of orders made in the last 365 days)
Monetary (average order value)
On the store level:
Recency - how much time it takes to make a repeat order on average
Monetary - what is the average order value
How we compare:
We compare if the customer monetary value is greater or lower compared to store value
We compare if the customer recency value is greater or lower than store value
Note! The accuracy of distribution can be guaranteed by us in case your store has at least 5-7% of returning customers. Please note their number should not be less than 100 (contacts) too. If we don't have enough data to build personalized customer lifecycle path for your store, we compare your customers to the predefined threshold:
A customer is "recent" if his / her last purchase was less than 40 days ago;
A customer "needs nurturing" if his / her last purchase was less than 90 days ago but more than 40 days ago;
A customer is "at risk" if his / her last purchase was less than 180 days but more than 90 days ago;
A customer is "about to be lost" if his / her last purchase was more than 180 days ago.
Customer lifecycle stages
Customer lifecycle stages in segmentation
Each lifecycle stage gives you an opportunity to achieve some specific goal to bring value to your business. To do this, we recommend creating segments based on each lifecycle stage. To create such a segment, use a custom property named 'Lifecycle stage' and choose the needed value (stage). They can be used as stand-alone filters or combined with other segmentation rules
Customer lifecycle stages in contact profiles
For each customer that has placed at least 1 order, you can find his or her lifecycle stage in the Profile view. This gives an even better understanding of each specific contact and provides a more complete single customer view.
Note! If customer hasn't placed any orders, you'll see dash next to lifecycle stage.
Suggested use cases
Although there are specific actions you could be taking to re-engage all lifecycle-stage based segments, we suggest to focus on the most valuable ones - to cherish the Loyalists and Champions so your brand is always top of mind with these customers - and to consider going an extra mile to nurture & reactivate the customers in High Potential and Need Nurturing segments.
Customer lifecycle segments in post-purchase automations
You can use different engagement strategies within the same automation workflow. For example, you can build a similar post-purchase workflow to send different emails to your Recent customers, Loyalists, and Champions.
Customer lifecycle segments in reactivation automations
Also, you can set up customer reactivation automation workflows based on lifecycle stages. When a customer enters the reactivation stage of the lifecycle (at risk or can't lose segments), you'll send them an email with a limited offer to get this customer to buy again.
As customers can reach the same stages multiple times, if they'll keep buying products for you, we recommend enabling the 'Do not re-trigger workflow for contacts who have already been in this automation at any time' option in trigger frequency settings.
Customer lifecycle segments in campaigns
Send your email campaigns with special offers to your VIP clients - Loyalists and Champions. Create a campaign with a bigger discount for these clients or give them early access to new collection. There can be multiple ways to show your gratitude.
Also, check out our blog to find even more information about CLS and how to use this feature to grow your revenue.
How often the stages are recalculated? Lifecycle stages are recalculated once a day, so segments are updated once a day as well.
What happens if I'll delete the contacts from my audience? The Lifecycle map covers all customers' orders, even if the contacts that have placed order has is deleted from the contacts section.
Why the number of customers that got an email campaign from me, when I sent it to a segment based on a specific lifecycle stage is lower than the number of contacts in this segment? Customers in the lifecycle stages can have 'unsubscribed' and 'non-subscribed' statuses and you can't send email campaigns to them.
Are all orders taken into account? Only orders placed in the last 365 days are taken into account while calculating the Lifecycle map.