Marketing Land’s 5-step approach to driving retail growth
Marketing Land columnist Jordan Elkind has shared a 5-step approach to driving retail growth.
Elkind says, “As the hottest season of the year for retail approaches, new research from customer analytics firm Custora (disclosure: my employer) has uncovered some surprising insights about what’s driving retail growth. The research looked at more than 40 of our retail clients to understand which metrics are most correlated with positive year-over-year revenue growth.
Customer acquisition vs average order frequency
The findings? For obvious reasons, high-growth brands invest significantly in acquiring new customers. It’s a sure-fire way to grow top-line revenue. But it’s actually relatively inefficient. In fact, a 1% increase in order frequency is 3x as impactful from a growth perspective as a similar increase in the number of customers acquired, and driving order frequency is often far less costly.
To put it differently: if the average customer buys once every 180 days, shortening that replenishment window to just 178 days can drive nearly 3% revenue growth”.
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