Retention Marketing

An e-commerce brand was spending $120,000 monthly on Facebook and Google ads to acquire new customers. Their customer acquisition cost was $45, and their average order value was $78 - thin margins that only worked if customers bought multiple times. But their repeat purchase rate was 18%, and 60% of customers never bought again after their first order. The math was unsustainable. We implemented a full retention marketing program. First, we analyzed customer data to identify churn signals: customers who went 45 days without a purchase had an 80% probability of never returning. Second, we built segmented lifecycle campaigns: new customer onboarding that drove second purchases within 14 days, VIP programs for high-value customers, re-engagement sequences for at-risk segments, and win-back offers for lapsed customers. Third, we implemented personalized product recommendations based on purchase history and browsing behavior. Fourth, we created a loyalty program that rewarded repeat purchases with points redeemable for discounts and exclusive products. Fifth, we built a referral program that turned happy customers into acquisition channels. The results after 12 months: repeat purchase rate increased from 18% to 47%, average customer lifetime value grew from $89 to $234, customer acquisition cost effectively dropped to $16 (when accounting for referred customers), and monthly ad spend decreased 35% while revenue grew 28%. Retention marketing transformed their business model from acquisition-dependent to sustainably profitable. The best customers are the ones you already have - if you know how to keep them engaged.