This content was originally posted in the No Best Practices newsletter on 05.28.2023.
I talk a lot about how small brands can overdo it on retention. But we’re switching gears today to talk about how larger brands can get the most out of advanced retention concepts like segmentation.
I was fortunate to work with Cody and Eli from Jones Road Beauty on a project recently. We dug into their customer data to get a deeper understanding of retention performance over time and determine what factors were driving customer lifetime value.
I can’t share the specific insights and strategies we uncovered (for obvious reasons), but I can share some of the principles and recurring themes that emerge when I do retention deep dives with larger brands like JRB and Bonobos.
If your brand is doing under $50M/year, don’t drop everything to work on these strategies. Returning customer revenue is a relatively small slice of your pie. Improving your baseline by 5-10% isn’t going to move mountains for your business.
But you can use these learnings to set yourself up for success as you continue to scale.