Optimove Solves the Mystery of the Disappearing Shopper

Figuring out how to turn first-time shoppers into repeat customers is the stuff of retail dreams. Unfortunately, faulty assumptions or, worse, scattershot marketing blasts can spoil the party, turning the dream into a nightmare of high acquisition costs and ineffective discounts that only cannibalize revenue, according to Optimove’s Agathe Westad. “Fifty-nine percent of first-time customers never come back,” Westad said, before delivering even more sobering news: In the fashion and luxury space, she figures the number is closer to 80 percent. Luxury, in particular, throws a lot of effort into acquiring customers, spending “a lot of time and effort on making beautiful pieces of content, of thinking about our brand meaning, of thinking about authenticity and how to convey that to differentiate,” she said. “And then we get customers through the door, and they don’t come back.” The issue should be self-evident for retailers, but Westad laid it out for attendees: Acquiring a new customer is four times as costly as keeping one. And when it comes to retention, that second order is pivotal. “You’re actually not just getting the money from the revenue from that second order, you’re increasing the lifetime value of your customer,” she stated. “Because you’re increasing their chances of coming back

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