It’s getting much harder and more expensive to target potential customers online due to several factors.
Data privacy legislations
Third-party advertisers, like Facebook, are struggling with an increased focus on online privacy. The tactics they used to reach users and track their behavior are no longer allowed.
Apple has followed suit by making it easy for their customers to delete personal data and block tracking.
There has also been a shift in consumer awareness about how their data is collected and used. While consumers still want to engage with brands, they also want to have control over their data.
The Solution: Compliant customer data
As online engagement continues to shift from platforms like Facebook to a privacy-first approach, first-party (owned) data will help adapt your marketing efforts.
Gathering compliant customer data on Shopify
We surveyed 213 Shopify merchants to better understand their current consent collection process. We also wanted to understand the impact that this was having on their business growth. And their bottom line.
On average, the Shopify merchants we surveyed have a repeat customer rate of 34%. Repeat customers, in this case, are classified as customers who had made two or more purchases over the previous 3-month period.
Our findings align with previous online retail research, where the repeat customer rate ranged from 20% to 40% on average.
Generally, you’re doing pretty well if your repeat customer rate is between 20-30%.
If you have heard of the pareto principle, this will make a lot of sense.
For the merchants in our survey, 61% of their repeat customers had opted into their marketing. This shows the important role that re-engagement campaigns play in stimulating repeat purchases.
As we have already seen, building this brand loyalty can be one of the most effective ways to drive future online growth.
Bain & Company found that even a 5% increase in customer retention can lead to a 25% increase in profits.
On the other hand, we found that the percentage of one-time customers that opted into marketing was only 26% on average.
Another important point is that consumer brand loyalty is rising. Once you start stimulating repeat purchases, you will also build brand loyalty.
73% of North American consumers agree that once they find a product or brand they like, they stick with it.
The key is capturing their consent to follow up with email marketing campaigns during their first purchase so you can create a personalized online experience that keeps them coming back for more.
How Moyee Coffee grew their marketing audiences by over 200%
When the pandemic hit, Moyee Coffee quickly shifted from selling to large offices to online sales on their Shopify Store.
Like most businesses, their eCommerce sales surged and quickly became a crucial part of their business. However, the team at Moyee recognized they had a problem.
Their average marketing consent acceptance rate then was just over 27%.
Realizing that they needed to get more out of every customer interaction, they looked for ways to increase their consent rates.
Working closely with Dataships, Moyee Coffee implemented an optimized consent management tool at their checkout, more than tripling their marketable acceptance rate to 83%.