Conversity

  It is a well known fact that attracting new customers to a retail business costs considerably more than engaging and retaining current ones – on average it’s between five and twenty five times more expensive. While this range is considerable , even on the lower end of the spectrum it shows there is still a real cost difference, highlighting the cost-saving benefits offocusing on retention. Based on this, when any business is looking to measure its customer base it’s important to take into consideration the Customer Lifetime Value, or CLV. This metric encompasses the total revenue a business can expect to generate over the course of a relationship with a customer. The longer you retain a customer, typically the more they spend, so by that logic a retained customer is also more profitable than trying to market to new ones. The big question is, how can we increase CLV by adding more value to customers’ experiences? Understanding Customer Lifetime Value Knowing the average ...

  As the first truly digital natives Gen-Z, born between 1997 – 2012, are very different from the generations that came before them. While the world, and in particular retail, has so many new options and possibilities, the preferences and challenges faced by a shifting sales cycle has been felt acutely by many businesses across the globe. A recent study found that while many Gen-Z prefer to shop digitally, citing convenience and choice being key factors, a large 43% actually prefer to shop in-store . This is higher than the closest second group which was Gen-X (born around 1965 – 1984) at 29%. While this is positive for the high street retailers, it does come with a caveat. Gen-Z prefers to do so with as minimal interaction with retail staff as possible at 42% of respondents. This is for a number of reasons but many feel the interpersonal interaction with them and a shop assistant, much like the feelings of a phone call, can create anxiety and mistrust. The Gen-Z Retail Pa...