#ask-the-community
Thread
I recently calculated the purchase retention rate of our massage oils for first time customers. The results were a bit shocking in my opinion. I personally had the feeling the retention rate would have been at least double of what the data shows.
So far, we have had very little negative feedback on our products, and most people seem to be very positive overall.
For other brands with consumable products, what are things you have done that have helped to increase the retention rate?
what was the return rate? We range between 25 and 42%
but navy knitted shirts are e.g. 42%, whereas white is much lower. Maybe its a similar pattern for oils? Maybe you have a couple of shitty smelling oils that fuck up the average? 🫣
We have +50% average 2nd purchase within 12 months across our portfolio, but that is massively driven by subscription.
1) implement subscription (when people cancel, it is easier to get a reason)
2) understand if people are using it correctly / enough - what drives their consumption?
3) understand why they bought it - maybe massage oils are bought for special occasions that don’t happen regularly for a lot of people. If so, it is hard to expect them to purchase regularly
4) ensure they sign up to newsletters when they buy
5) create post purchase content that ensures usage - e.g. massaging tips, do’s and dont’s, purchase reminders, interviews with massage therapists, benefits of massaging
My 2 cents at least @Koen van der List 💪
On average our return rate is around 15% within 6 months and 21% within 12 months @Kasper - LABFRESH. This is based over the whole product category. We see customers tend to change the smell depending on the season (e.g. more winter smells like eucalyptus in the winter, more summer smells like coconut in the summer).
Thanks for the tips @Anders Reckendorff!
Hope some of it helps - obviously I have no idea of your consumer group, so this was extremely general off-the-cuff advice! 😅
@Koen van der List have you considered a subscription model? This would be the best way to increase your retention and reduce cost per acquisition?
We have launched a loyalty program beginning this month. It’s hard to say what this exactly will bring in yet, but the first replies from our customers were good.
We have considered it and spook with a few massage therapist about this. Many of them prefer not, as the amount of massage oil they use differs from month to month (people book more massage in winter than in summer).
On the other hand, we have not tested it yet. We are considering testing it in a couple of months once our loyalty program is fully known by our customers.
Koen Van der List - can you give me a bit more info on your loyalty programme? I would like to set one up for a fashion brand - I am not sure of what system to use to build it. Thanks!