June 26, 2024

Customer Movement; What is it and why E-commerce brands should care.

The concept of "customer movement" refers to the strategic progression of customers through different stages of engagement and loyalty with a brand.

The concept of "customer movement" refers to the strategic progression of customers through different stages of engagement and loyalty with a brand. This involves transforming dormant or inactive customers into active users, then moving them towards becoming loyal customers, and eventually turning them into brand advocates.

Here's why brands should focus on this progression:

1. Activation of Dormant Customers

Dormant customers are those who have interacted with the brand in the past but have since become inactive. Reactivating these customers is crucial because:

- Cost Efficiency: It is generally more cost-effective to re-engage existing customers than to acquire new ones. Dormant customers already have some familiarity with the brand, reducing the effort needed to attract their attention.

- Untapped Potential: These customers represent untapped potential revenue. By re-engaging them, brands can unlock additional sales and increase their customer base's overall value.

2. Transition to Loyal Customer

Once dormant customers are re-engaged, the next step is to cultivate their loyalty. Loyal customers provide significant value because:

- Repeat Business: Loyal customers are more likely to make repeat purchases, providing a steady revenue stream.

- Higher Lifetime Value: They typically have a higher customer lifetime value (CLV), meaning they spend more over their relationship with the brand.

- Resilience: Loyal customers are less likely to switch to competitors, even in the face of competitive offers.

3. Development into Advocates

The final stage is converting loyal customers into brand advocates who actively promote the brand to others. Brand advocates are highly valuable because:

• Advocates share their positive experiences with friends, family, and social networks, providing authentic and powerful word-of-mouth marketing.

• Recommendations from advocates are trusted more than traditional advertising, leading to higher conversion rates.

•  Advocates help drive organic growth by bringing in new customers without additional marketing spend.

Benefits of Focusing on Customer Movement

Increased Revenue: By activating dormant customers and fostering loyalty and advocacy, brands can significantly boost their revenue through increased purchases and new customer acquisition.

Customer Insights: Engaging with customers at different stages provides valuable insights into their preferences and behaviors, allowing brands to tailor their marketing strategies more effectively.

Enhanced Customer Experience: A focus on customer movement ensures that customers receive personalized and relevant experiences, improving overall satisfaction and retention.

Competitive Advantage: Brands that successfully manage customer movement can differentiate themselves by building a strong and loyal customer base, creating a competitive edge in the market.

By focusing on the customer movement, brands can maximize the value of their customer relationships, driving long-term growth and sustainability.

Activate your data now

Connect emotionally with your customers within a first-party brand-owned social engagement platform.
Learn How
Related Blog

You may also read

May 14, 2024
“Customer Loyalty Solution of the Year”
Cohora Wins “Customer Loyalty Solution of the Year” Award From RetailTech BreakthroughInternational Awards Program Recognizes Standout Retail Technology Companies, Products, and Services
Read More
Learn More
May 8, 2024
The Key to Thriving in Today’s Highly Competitive DTC E-Commerce Market
In today’s highly competitive market, brands must connect with customers on an individual level. By centralizing customer data and insights within an interactive community portal, brands can capture real-time feedback to tailor products, services and experiences to specific needs and preferences.
Read More
Learn More
April 24, 2024
The Power of Zero-Party Data: Fueling Business Strategy and Customer Relationships
What could be better than understanding your customers' needs, preferences, and behaviors right from the source?
Read More
Learn More