Tailor Personalization to Grow Repeat Customers


Research from Bain & Company indicates that increasing retention rates by up to 5 percent can increase profits by up to 95 percent. One of the best ways for an organization to retain current customers is through personalization. A personalized approach that is tailored to a customer’s preferences will result in increased engagement with a brand.

Identify VIPs

For digital businesses, many web analytics tools allow for the identification of “VIPs,” or customers who display a high level of interaction with your website. Transforming these interactions into the next levels of engagement and an actual relationship between brand and customer is an essential target for all businesses.

To receive repeat business and interaction with these “superstars,” a company must continually generate value and treat them with a genuine focus. For example, some companies offer exclusive access or even private WeChat livestreams to product releases and events in order to show VIP customers that their brand loyalty is valued and appreciated. Developing creative and authentic communication channels is the best way to identify and recognize VIPs.

Provide a personalized shopping experience

Personalizing a customer’s shopping experience begins with the marketing technique of segmentation. In essence, segmentation is a method of sorting and grouping different types of customers based on demographic differences and other factors like geography, socio-economic status, education level, and interests and hobbies.


Using demographic and/or behavioral data allows a company to target its customers more accurately and therefore enhance the customer experience through a personalized approach. Recording customer behavior and interactions, such as their shopping preferences, and accessing customer profiles on the company’s website are excellent sources of segmentation data. Using these data sources to create overall profiles and segments of similar customers can influence every point of interaction with customers, from the type of communication channel to the language used in marketing material.

Understand customer retention

Focusing on why customers keep coming back is a critical component of retaining repeat customers. The cost of attracting a new customer is five times greater than retaining an existing customer, meaning that most organizations stand to gain more from channeling their energies into turning existing customers into repeat ones.

Obtaining these types of customers circumvents the entire sales funnel at greater organizational efficiency. To best understand customer retention, a key statistic to measure is customer lifetime value or the total net profit that a potential customer will bring to a business over the entire course of the relationship.

Offer customer perks

As the number of transactions with individual customers increases over time, companies are in a unique position to gather more valuable insights and deliver a more personalized experience back to the customer. Amazon is the golden standard of eCommerce marketing. Amazon’s algorithm allows their platform to recommend products to customers based on their past purchases and other characteristics gathered from their customer profile.


Another successful personalization technique is to send out a coupon or promotional discount via email reminders or mobile app push notifications. Offering customers perks to entice repeat business works best after a pattern of customer behavior is recognized. The volume of data will only continue to increase, so being able to organize, analyze and personalize this information helps establish a long-lasting loyalty relationship between customer and brand.

These are just a few techniques to improve customer retention. To discover how your business can utilize personalization to enhance customer experience, visit the Terrace website.


Related reading:

How Businesses Can Take the Lead on Data Transparency

%d bloggers like this: