A five-step process to fix retention

Last week we got on a call with Omer Hazer on the podcast, to talk retention (from an agency’s perspective).

His agency, Atlas Studios, is doing some great things way down there in New Zealand; from site migrations (non-Shopify ecom businesses are slowly disappearing), to building engaging Shopify Plus experiences, and crafting & executing email, SMS campaigns and other key growth levers.

I broke down everything we talked about into a five-point process that your brand can follow to shore up retention and, crucially, get more high-margin sales from people who already know about you.

👇 Here’s what we’ll cover:

• The 3 most common retention blind spots (that even big brands miss)

• Where retention starts (and the one thing that’s quietly sending customers away)

• Why many brands under-invest in retention

• The problem with loyalty programs

• When to go beyond the basics

Watch the full episode below, then keep reading for the primary action steps that are going to help you drive sustainable LTV growth this year.

Basics first

I found it interesting that Omer still sees major brands that don’t do the basics right.

We tend to think you need advanced strategies to improve LTV, but even successful brands still leave money on the table with simple mistakes or omissions.

To fix major retention leaks, start from the bottom. The simplest things move the needle the most.

• Do you have basic email & SMS flows, push notifications (if you have a mobile app) working on autopilot?

• Are your retention channels doing more than just using the default template from your ESP?

• Are you collecting opt-ins (email & SMS) from website visitors who aren’t ready to buy?

• Have you tested basic tweaks to these opt-ins? (timing; not just blasting a popup as soon as the site loads)

• Are you removing friction from the buying process? (autofill in checkout, keeping users logged in, product emails that link straight to the product that was advertised)

Boil it down to a few basic questions.

Are you meeting your customers where they are? Are you giving them what they want? Are you making it easy for them to come back?

Retention starts with customer experience

Great copy and clever segmentation won’t forgive a bad buying experience.

Many brands still don’t get that maybe 70% of retention is just CX. Email flows, copywriting, killer perks, these are all icing on the cake.

But the buying experience comes first.

One thing that’s a total killer of retention: stockouts.

It doesn’t get enough attention, but from a customer’s perspective, it’s the most important part of the repeat purchase process.

Can they actually buy the thing?

Your customer isn’t perpetually in-market. If they’re coming back to your store, you’ve caught them at the right time. They’re excited, they’ve made the decision to trust you with another purchase.

…then they find the product’s out of stock.

You think the product’s worth waiting for. The customer doesn’t. Their interest cools, they go somewhere else.

It’s particularly important in high-frequency, habitual buying categories like supplements and beauty products. Customers are the least forgiving, since the product is a part of their daily routine, and if they can’t get it from you, they’re going to get it from the next brand.

These also tend to be the most competitive categories, where long-term retention matters the most.

Related: Mack Weldon’s product-first retention strategy

CX is the heart of retention (but it’s not everything)

A good product and a great buying experience is crucial for repeat business.

But CX very rarely drives retention on its own.

Many brands make the mistake of thinking that it will.

Nailing product and customer experience doesn’t guarantee a customer will come back. People have short memories. They don’t think about your product as much as you do.

A lot of businesses under-invest in retention because of this. They think, “as long as I’ve got a good product, retention will take care of itself”.

It doesn’t.

Great retention requires investment. But as long as you get the building blocks right, it’s an investment that delivers an outstanding return.

The problem with loyalty programs

Loyalty programs are seen as a core part of retention marketing. But they’re a little overrated.

Not that they can’t be effective.

The problem is, they’re often expected to be silver bullets for retention.

Sure, an “out of the box” loyalty program probably won’t cost you anything, but it also won’t add much value.

Most plug-and-play programs see <1% redemption rates.

You’ve got to think beyond the basics.

❌ Mediocre loyalty program = points-for-discounts, slapped together in 10 minutes

✅ Effective loyalty program = real-life perks, exclusive tiers, all integrated with the CX

Omer’s not anti-loyalty. They recently launched a loyalty program for jewelry brand Thomas Sabo that’s been killing it.

The difference? The loyalty program actually adds to the customer experience, rather than dangling a vague “earn points on your purchases”.

It starts with points — but the perks are more than that. You get exclusive access to events and promos at certain tiers. Special rewards. And at the highest tier, an extended returns period and free jewelry cleaning.

It’s about making using your loyalty program to make VIP customers feel like VIPs — and builds a feeling of exclusivity for your top customers (something we talked about in last week’s newsletter).

Data-driven retention

Firs thing’s first, you’ve got to get the fundamentals on point.

Great CX. Simple retention flows set up. Make sure your loyalty program is actually interesting to your customers.

But once you’ve done all the basics, and you want to take retention to the next level, it’s time to let data guide you.

For larger brands ($5M+), an RFM analysis is a great way to figure out the high-performing and low-performing segments, products and moments in your retention lifecycle.

(Yotpo just launched a great tool for this)

An RFM analysis helps uncover common churn points, invest more in segments with a higher return, or shore up weak spots in your retention strategy.

What you really want to find are the inflection points where long-term retention spikes.

For example, we worked with Country Life Natural Foods to build their mobile app. They identified that once a buyer got to the 3rd or 4th purchase, they typically went on to become customers for life.

So they built their retention strategy around getting people to this point.

Knowing these inflection points is a cheat code.

(If you're a smaller brand (<$5M), skip the data-heavy tools for now. Instead, run post-purchase surveys to uncover friction points directly from customers.)

Final takeaway

Too many brands treat retention as an afterthought.

They forget that active nurturing is needed to turn your acquisition dollars and stellar CX into long-term, loyal customers.

Or, brands fall the other way. They put millions of dollars into fancy retention programs, without doing the basics right.

Make sure each part of your business works together; and build in a logical sequence.

Ready to tighten your retention game?

Start here:

1. Run a retention audit: email/SMS flows, popup opt-ins, engagement metrics

2. Fix the obvious gaps (don’t skip the basics)

3. Start from the foundation (CX) and build from there

4. Build loyalty into your CX (not as a bolt-on)

5. Map your retention journey, talk to your customers (mine the data if you’re big enough) and identify inflection points

👉 What’s one change you’ll make this week to improve retention?

Reply and let me know (I read every reply).

Quick Hits

The bottom is falling out for ecom brands

This is a nice breakdown of major ecom brands that have seen their stock go up, down, or somewhat sideways. Some, like Allbirds, Solo Brands, are in trouble. Takeaway? “Growth at all costs” can be a perilous game to play.

Read more →

The ecom brand owner’s 5-minute MBA

This is great - a quick read, with 30 secrets learned from turning around ecom brands, that teaches you more than most expensive courses.

A lot of brands’ problems can be distilled into some combination of points from this list. The real difference is execution.

Read more →

Pets, Baby products seeing pre-tariff sales spikes

Retail Brew looked and the latest sales data from Shopify, and found some interesting things about what kind of products are being stocked up on ahead of tariff price rises.

Pet supplies and Baby Care products were both significantly up in April. Many of these products are imported, not just from China but also from countries like Canada which are set to see increased tariffs passed on to the customer.

Read more →

Brexit vs tariffs

Brexit was not dissimilar to the current tariff situation. A lot of businesses got crushed, and saw their fulfillment network turned on its head. Davie Fogarty was there, and The Oodie was hit particularly hard. Yet he’s NOT advocating for quick action in response to tariffs.

Read more →

Brands are pulling back on ad spend

Data from Ramp shows 54% of businesses (and 61% of retail businesses) froze or reduced their ad budgets in April.

This goes along with reports that Meta might lose $7 billion due to tariffs and Section 321-related pullbacks, while Snap’s shares dropped 12 percent due to cutbacks.

Read more →

“Every marketing channel sucks right now”

Interesting read from Andrew Chen (a16z). He makes the case for why every marketing channel is rough right now - and that growth marketing, as a whole, is in a bad state.

He might be right. The takeaway for brands shouldn’t be doom and gloom, though. It should be that product, customer experience, and retention is king right now.

When high-growth channels are struggling, the businesses that stay afloat will be the ones with solid, dependable revenue from repeat buyers, a product that needs minimal marketing, and a customer experience that people remember.

Read more →

Temu’s new import charges

Temu orders are now coming through with “import charges” to cover the extra costs to the retailer… approximately 130% of the cost of the products themselves.

But, hey, at least there’s free shipping.

Read more →

TikTok ban to be extended? (again)

Word is TikTok’s US ban may be extended yet again, if a US buyer hasn’t been found by the June 19 deadline. Good news for any brands relying on TikTok to drive sales.

Read more →

That’s all for now.

I’ll be back in touch next week, with more on how successful brands are doing CX and retention right.

Remember to check out our podcast on Spotify and YouTube, and give it a like/comment/sub if you found the content useful.

If there’s any topic you’d like to see us dive into, for either the newsletter or the podcast, just shoot me a message here.

Until next time,

Pietro and The Retention Edge Team

PS: planning to launch a mobile app for your brand? Thinking about it, but not sure if an app is really worth it? Get in touch and let’s talk. Reply here, shoot me a DM on LinkedIn, or go to our website to get a preview of your app for free.