Industry Knowledge
Min Read

Customer Retention 101 for D2C

customer retention strategy
Published On
June 13, 2022

At the start of 2022, we at Xeno made a decision to venture into the D2C industry to help brands with customer retention. After months of planning, product development & a lot of hustle, super happy to share our first success story in this venture with Iba Cosmetics. The 98th edition of Xenopulse decodes everything about this journey & also talks about the strategies that enabled IBA cosmetics to increase their website repeat sales by 28%

Hey there,

June has been the month of firsts & adventures. And the adventure this time is 8000 miles away :p

Don’t worry no suspense here for you. I am currently sitting in the United States to explore the US market & see what it has in store for Xeno. Super excited to see how this adventure unfolds.

Here’s a recent Insta story that I posted when I had landed last week

Now talking about firsts, there’s another news for you. At the start of 2022, we at Xeno made a decision to venture into the D2C industry to help brands with customer retention.

After months of planning, product development & a lot of hustle, super happy to share our first success story in this venture with Iba Cosmetics 🚀

This edition will decode everything from the challenges to the solutions & the strategy that enabled them an uplift of 28%. So let’s dive in:

The growing popularity of ‘Direct to Customer’💪🏼

India has seen more than 700 trendy brands start selling directly to customers in the last few years. The pandemic has made it habitual for customers to buy products/services online which is supported by the rise in social media!

All these factors have not only increased the competition in the market but also increased the expectations that a customer has from a brand. And that’s not all;

Increasing D2C competition; a perfect storm for Marketers😪

The growing competition amongst D2C brands however has also brought some unavoidable problems for every retailer which are:

  • Converting website visitors into customers
  • Retaining their customers
  • Building a loyal customer base

Nevertheless, it is no brainer to say that there are 100 ways that a D2C brand can adapt to retain its customers! But, it is easier said than done!😪

Iba Cosmetics however had the same story until they decided to do something about it.

Let us check out what Iba Cosmetics did differently and figure out the way for D2C brands to retain customers :

How Iba Cosmetics kickstarted their CRM journey😎

Iba Cosmetics was facing the same challenges in retaining its customers & building their loyalty. However, they were determined to solve these issues hence they decided to dive deep into understanding their customers & what they really want.

A well-executed CRM changed the fate of Iba Cosmetics 🎉

Iba Cosmetics was aware that they have to distinguish itself by offering a unique customer experience to drive retention.

This could be achieved by:

  1. Understanding their customers deeply using a CDP (Customer Data Platform)
  2. Using this understanding to deploy personalized retention marketing campaigns

With the vision to create personalized experiences for each customer, Iba cosmetics onboarded Xeno as its CRM partner🥳

Building a deeper customer understanding using 360* customer profiles

The first step was to prepare a consolidated view for all of its customer base in order to understand them better & kickstart their personalization journey.

They created a 360-degree customer profile for each of its customers with the help of Xeno’s Next-Gen CRM. These 360* customer profiles enabled them to understand each customer’s behavior like their favorite product category, preferred marketing channel, discount-seeking tendencies, etc.

With those insights about each customer, IBA was all set to run relevant personalized campaigns.

The hero of this story: ✨Personalized Marketing Campaigns✨

What were the campaigns that led to a massive 28% increase in repeat sales for IBA Cosmetics? Let’s decode:

✔️Category based Campaigns that targetted customers with the next-best recommended product according to their persona

✔️ Dormant Reactivation by targeting all of the customers who haven’t made a purchase in the last 9 months based on their recency & monetary persona.

✔️Automated replenishment campaigns every month based on the last purchase of the customer
✔️ ATV-based Campaigns by clustering customers based on their favored ATV brackets

Want to have a peek at each campaign, check out the below space -
Learn how Iba Cosmetics increased their website repeat sales by 28%

Story of the Week: A Complete Guide to Retail Analytics for 2022

There are a million things that retailers need to do every day. From creating strategies for attracting new customers to finding ways to retain old customers and introducing exciting offers and brand campaigns

But, coming up with strategies and implementing marketing tactics is not enough until you are tracking them right!

Data analytics must be a crucial part of every retail business these days. Whether it be the website traffic, engagement rates, inventory, revenues, or expenses, tracking every retail marketing metric is important.

Click here to learn all about retail analytics and how it can be leveraged to make your retail business a success.

That’s all for today. Hope you have a killer week.

I will see you again very soon,

Marketing & Content Strategist

Anisha Arora is an experienced Marketing & Content Professional who often breaks down complex topics for readers here. She collaborates with various teams to seamlessly combine different viewpoints and knowledge about customer retention, CRM, loyalty, and marketing technology. When she's not working, you'll find Anisha sipping coffee and binge-watching her favorite TV shows.


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