Article
Retention
Here's a number that should keep you up at night:
The probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20%.
Yet most ecommerce brands spend 90% of their budget on acquisition and almost nothing on retention.
Why Retention Matters More Than You Think
A 5% increase in customer retention can increase profits by 25-95%. That's not a typo.
Repeat customers:
- Spend 67% more than new customers
- Cost 5-7x less to convert
- Refer more new customers
- Are more forgiving of mistakes
The Retention Stack
Email Sequences
Not newsletters. Strategic, automated sequences:
Post-Purchase Flow: Thank you → Usage tips → Review request → Cross-sell. Timed to the product lifecycle.
Win-Back Flow: Triggered when a customer hasn't purchased in X days. Personalized based on their last purchase.
VIP Flow: For your top 10% of customers. Early access, exclusive offers, personal touches.
SMS
Email open rates are declining. SMS open rates are 98%.
Use SMS for:
- Shipping notifications (builds trust)
- Flash sales (urgency)
- Restock alerts (convenience)
- Birthday offers (personal touch)
Loyalty Programs
Not points-for-purchases schemes. Structured programs that reward behaviors you want to incentivize: referrals, reviews, social sharing, repeat purchases.
The Compounding Effect
When retention works, everything gets better:
- CAC effectively decreases because LTV increases
- You can afford to spend more on acquisition
- Revenue becomes more predictable
- Growth compounds instead of plateauing
Building the System
This isn't about sending more emails. It's about building a system where every customer interaction is intentional and moves toward the next purchase.
That's what separates brands that plateau at $50k/month from brands that break through to $500k/month.