How To Strengthen Customer Retention After Virality
Discover how brands can use viral moments to build customer loyalty.
Going viral can significantly boost sales, but brands must implement the right processes to retain customers effectively. In this article, Angus Knights, head of product success of parcelLab, explains why a customized post-purchase experience with segmentation is critical for brands to make the most of their viral moments.
A viral moment quickly leads new and returning shoppers to the brand’s site to check out the product(s) they have seen in action from their favorite creators or influencers on social media. For some small brands, a viral moment can be game-changing for putting their brand on the map, and for larger retailers, it can draw attention to a new product line to significantly boost sales. A viral moment may only last for a few hours up to a few weeks as people share the branded content with their friends and network, continuing to build traction.
During this window of virality, it is critical to build momentum – not encounter roadblocks that slow it down. The best way for brands to capitalize on virality is to retain new customers driven to the site through viral content. The second purchase a customer makes is significantly more profitable than the first, and brands need to leverage the proper methods to turn one-time purchases into repeat loyal customers.
But what are the most effective methods to help brands capitalize off virality and expand their loyal customer base?
Don’t Leave Money on the Table
Customer acquisition costs continue to rise as factors, including GDPR, the demise of third-party cookies, and heightened consumer control of personal data, including app tracking, continue to compound. Virality is a massive breakthrough from a customer acquisition cost (CAC) perspective, as phases of increased hype around a brand can significantly decrease CAC. The best way to continue building off the momentum is to retain new customers.
Several aspects of a viral moment fall outside of a brand’s control, including timing, but companies need to focus on the elements they can control. When the brand Nudestix went viral for their Blot & Blur Matte Stick product on Tik Tok with a video that generated over 1.2MM views, the brand continued driving buzz on social media and listening to their community to deliver key marketing touchpoints. Although the brand did not know the single video would go viral, its agility helped build and maintain the momentum of the viral moment.
Vitality may often come with hiccups, including supply chain pinches as brands struggle to meet the heightened demand. Still, Ensuring that the brand can effectively scale its supply chain at a moment’s notice to meet the heightened demand, satisfy new customers, and focus on the most engaging points of the customer journey.
Customers who engage with a brand during viral moments can greatly differ from traditional customer profiles as viral videos are shared across new audiences that may not regularly engage with the company. Brands must be able to quickly cater to these differentiated customers and provide them with product recommendations and targeted content that will turn them into repeat customers. If a company lacks the agility to turn these differentiated customers into repeat customers, they risk losing out on significant profitability.
Enter Segmented Post-Purchase Experience
Rather than looking at a sale as the end of the customer experience, it should be looked at as the beginning. Once a customer places an order, the waiting game for product delivery begins. And after the product is delivered, the customer may want to return the item. The post-purchase experience is critical, as 53% of shoppers consider the post-purchase experience to be the most emotional part of their shopping journey. As such, it significantly impacts customer satisfaction, loyalty and retention. But 54% of corporate and 32% of D2C brands do not share status updates with customers after sending the order confirmation.
Although many retailers already offer a segmented buying journey to benefit from virality, almost no retailers offer a segmented post-purchase experience to piggyback off increased traffic further. Post-purchase touchpoints are some of the highest engagement moments in the buying journey and significantly impact if a customer re-purchases from a retailer. Personalization in these messages, including product recommendations, targeted promotions, and customized communication, can create a sense of relevance and make the customer feel valued, increasing the likelihood of repeat purchases.
This is made further apparent when looking at generational trends. Gen Z alone controls an astounding $360 billion in purchasing power, and they clearly prefer social media for inquiries over traditional avenues such as Google. As such, Gen Z shoppers are more likely to engage and make purchasing decisions based on viral content. Further, Gen Z shoppers are more loyal to fashion and accessories retailers than their millennial counterparts, which is a crucial consideration for retailers to continue building brand loyalty.
The Value of the Post-Purchase Experience
Viral moments are not guaranteed – and there is no way to determine when the next viral video will draw new customers to a brand’s website. But brands can proactively implement best practices to capitalize off virality to ensure they are prepared for the next viral moment.
Investing in a robust post-purchase experience will help retain customers following a viral video and drive sustained value from everyday sales. By providing targeted, personalized brand communications that draw customers back to the brand’s website to view order information or tracking, the company has further opportunities to upsell or cross-sell based on targeted product recommendations. This can lead to a second sale and provide another opportunity for the company to maintain customer retention, particularly with a Gen Z audience that prioritizes customer loyalty.
By leveraging personalized post-purchase touchpoints, brands can strengthen customer loyalty and trust that help sustain profit and sales in moments of virality or business as usual.
What steps have you taken to improve customer retention? Share with us on Facebook, Twitter, and LinkedIn. We’d love to hear from you!
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