What is Post-Purchase Marketing and why is it so important?

Importance of the Post-Purchase Marketing

It is all about interacting with your customers and clients after they make a purchase. It is the moment when your brand will be recognized in the industry. And the moment when your brand will be considered for another purchase. The moment when your brand will be shared by word of mouth. See? It is important… Let’s dive straight into it.

In the early days of retail, it took a lot of work to focus on post-purchase marketing. Once your customer has left a brick-and-mortar store, it isn’t easy to reach him. Since the digitalization of shopping, and eCommerce, a shift has started to focus on post-purchase marketing. First, slowly but this is accelerating faster and faster.

Why is post-purchase marketing so important?

Retaining customers is as important as bringing in new customers. Or, to put it differently, why ignore the customer you spend so much money on? Instead, continuing to invest in these customers by building brand loyalty and awareness will make them advocates.

As described in the previous blog, each customer goes through certain critical stages of buying- the need to solve their problem, search for information, evaluate their options, and decide to purchase. But that is not where it stops; the post-purchase marketing starts right after!

In other words, Post Purchase Marketing is the communication that takes place between the customer and the brand after the purchase. All to build brand advocates that promote your brand and/or start repurchasing.

After the initial purchase by a consumer, it is time for the brand to prove its existence and stand out from the crowd. It is the phase in which the customer will look for a reaffirmation of their choice, arguably the most crucial stage. It is the moment when the customer decides whether he is satisfied with the purchase or not. The moment when they will start sharing their experience with friends and family.

See? It is essential, but let’s summarize it a bit more. The importance can be split up into 3 categories.

As a young eCommerce company, you are spending, on average, 12% of your revenue on marketing. That’s a chunk of your budget. Would you give this to Google / Facebook or your existing customers and extend their happiness instead?

It costs five times more to acquire than to retain a customer. It is key to turning existing customers into long-term loyal customers. This all sounds easy, but it is easier said than done.

As a brand, you must influence how consumers feel and think about their purchase. It is essential to reassure them that they have made a good purchase. Facilitate a smooth process along the way. Inform them of the right amount of information at the right time.

If done correctly, your existing customers are 50% more likely to purchase again.

At a certain point, we all fall in love… To your partner, and believe it or not, also with brands. A brand wants you to fall in love. That’s the reason they focus on relationships. As humans, we like interactions, physically and emotionally. As an eCommerce brand, most interactions occur in the digital world.

The best brands build an emotional connection with their audience. The best way to do this is by creating a dynamic brand identity that easily resonates in the consumer’s brain. Show genuine interest in your customer, and long-tail, you will be rewarded.

eCommerce is no longer the holy grail. It is a saturated market where hundreds of thousands of brands fight for that little bit of consumer attention.

Data is key! It is the foundation of a good strategy. Once you have built a relationship with your customers, they are more likely to share information with you. Use this information to adapt your strategy.

How to measure Post Purchase Marketing?

One way to measure the success of your post-purchase marketing is to ask your customers. There are a few friendly metrics that are easy to connect. For example, the Net Promoter Score®.

You probably have seen this question being asked. “How likely will you recommend a product/service/brand to your friends? On a scale of 0-10, you answer that question. 0-6 are considered to be detractors, and 9-10 are considered to be promoters. The percentage of supporters minus the share of detractors gives you the NPS Score.

A score from -100 to 0 needs improvement and is considered harmful. From 0-30, you are doing good. 30-70 means you are doing great. And 70-100 is outstanding. You want to continuously improve your NPS score in a highly competitive area. eCommerce and retail are, on average, reaching 62 and 61.

You can significantly reduce your marketing costs by focusing on your existing customer base. Constantly listen to your customers and reward them for being loyal to you. Focus on delivering an outstanding experience and go above and beyond their expectations. A happy customer is 50% more likely to repurchase from you.

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