Get the basics right
A Belgian secondhand retailer wanted to grow sustainably, but was primarily focused on attracting new customers. The real profit lay elsewhere: in the customers they already had. By first getting the fundamentals in order, the driver of growth shifted from costly customer acquisition to profitable customer retention.
Objective
The retailer wanted to achieve sustainable growth without making that growth entirely dependent on a constant stream of new acquisitions. The goal: to increase returns from the existing customer base by getting to know existing customers better, reaching them, and engaging them—and thus transitioning them from one-time buyers to repeat, loyal customers.
Challenge
Communication was broad and general: the same message for everyone. Customer data was limited, and the company had poor reach among its own customers. The result was a vicious cycle—without a clear picture of who the customers were, attracting new customers remained the only driver of growth.
As a result, much of the potential remained untapped: customers who had already made a purchase were barely engaged. Growth was expensive, because every euro went toward attracting new customers instead of capitalizing on existing relationships.
Collect and consolidate customer data in a structured way to create a reliable picture of who the customer is and what they do.
Being able to actually reach your own customers through the right channels—the key to moving from data to activation.
From a single message for everyone to relevant communication tailored to each segment, aimed at driving engagement and retention.
The Stratics Approach
We first laid the groundwork: data collection, accessibility, and targeted communication, all based on a single 360° customer view. Only once that foundation was solid could we shift the strategy—from pure acquisition to retention and loyalty, with a focus on engaging existing customers. We made the decision to make that shift together with senior management, based on what the numbers showed.
Get the basics in order: collect data and build accessibility.
Targeted communication: relevant messages for each segment.
Shifting the Focus: From Acquisition to Retention & Loyalty.
Result
With a solid foundation in place, growth shifted from costly customer acquisition to the existing customer base. The results over two years:
Key Insight
“Growth doesn’t start with more traffic, but with your existing customers. Those who know who their customers are and can reach them shift the growth lever from expensive acquisition to profitable retention.”
This is why MIP —a single 360° view of the customer—is the foundation of any sustainable growth strategy.
Discover how a 360° view of your customers can benefit your retention and loyalty efforts.
Learn more about MIPFrom data to insights to action to ROI. Let’s see where the growth opportunities lie in your organization.
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