Scaling Holiday Strategies: How to Win Customer Loyalty and Increase Projected 2016 Revenue
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When it comes to holiday gift giving, presentation has always been crucial. But, for retailers looking to surprise and delight holiday customers, presentation is key.
Indeed, brands can leverage premium packaging to score big during the holiday shopping season. And, if they do it right, they’ll win over net new customer with high lifetime value –– boosting projected 2016 revenue.
In today’s ecommerce industry, high lifetime value and customer retention is more important than ever. After all, only 26% of shoppers are looking to buy from a brand they don’t know.
Consider these key statistics about customer retention:
- A 5% increase in customer retention can grow a company’s profitability by 75%
- It’s almost 50% easier to sell to a returning customer than a new one
- Winning new customers can be 5x more expensive than working with an existing customer
During the holidays, brands can often forget the important role premium packaging plays in engaging and retaining customers. Here are a few things you can begin to implement for your store right now in order to get the biggest bang out of your shipping and packaging buck.
Go Beyond the Brown Box
Premium packaging can impact brand perception and purchasing trends. In fact, more than a third of online shoppers report that branded packaging affects their perception of a brand or retailer, while 61% went as far as to say that premium packaging and wrapping materials make a brand seem “upscale.”
While customers make a purchase for what’s inside of the box, a package’s exterior has a powerful influence over brand perception as well. Consumers hardly think twice about traditional brown boxes, but they do take notice when a brand does something different with its packaging. Nearly half of all survey respondents felt that premium packaging gets them more excited about receiving and opening a package.
Premium packaging is especially important for luxury retailers. The more personal the product, the study found, the more important premium packaging becomes. Luxury goods — including products such as jewelry, specialty food items and beauty products — are among the most popular gifts given for the holidays. Premium packaging can help an online brand better convey the intended experience of these luxury products without that in-person touchpoint.
Give Customers a Reason to Recommend
Beyond increased or improved brand perception, premium packaging also encourages repeat shoppers and word-of-mouth marketing. Almost 40% of online shoppers feel that branded packing makes them more likely to recommend a product to friends. And, when these customers recommend, they will likely use social media to do so. In the last year, 54% of survey respondents reported using social media to find a picture or video of a product they were looking to buy.
Hone in on a strategy akin to Warby Parker or Birchbox, which encourages customers to share images of their unpackaging process on social. After all, 61% of survey respondents said an image or video on social convinced them to purchase.
There is a neurological connection between a positive unboxing experience and the consumer’s desire to repeat it. Every time a consumer opens a well-designed package, their brain experiences more pleasure than it does during an in-store shopping experience. Don’t be the retailer that misses out on that positive brand recognition.
In all, 80% of a brand’s future revenue will come from just 20% of its current customers. As the holidays near, capitalizing on this peak-purchasing season will factor into how large and quickly this 80% grows for your brand in 2016.
Want more ideas for increasing customer retention? Learn how to create and monetize a successful ecommerce customer loyalty program.
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