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Want to Reduce CAC? Focus on Retention

The delivery experience is the final touchpoint … it can make or break the customer's perception of the brand.

In the world of e-commerce, customer acquisition cost (CAC) is a crucial metric that determines the effectiveness of marketing and sales strategies. However, reducing CAC is not the only way to improve profitability and achieve sustainable growth. Retaining customers and building brand loyalty is equally important, and the delivery experience plays a significant role in achieving these goals.

Why Delivery Experience Matters

Customers expect fast, reliable, and hassle-free delivery services, and any mistakes or delays can negatively impact their experience. According to a survey conducted by MetaPack, 96% of customers said that delivery experience affects their brand loyalty.

Therefore, e-commerce platforms need to focus on enhancing the delivery experience to retain customers and build brand loyalty. Here are some solutions that can help e-commerce brands improve their delivery experience and reduce CAC by focusing on customer retention and rewarding your best customers.

  1. Real-time order tracking

Real-time order tracking is a must-have feature for any e-commerce platform. It enables customers to track their orders in real-time and stay updated about their delivery status. It also helps reduce customer anxiety and frustration by providing accurate delivery estimates and proactive notifications about any delays or issues, including revised delivery estimates when necessary.

FenixCommerce offers a real-time order tracking solution that provides customers with a user-friendly interface to track their orders across multiple carriers and shipping methods. The solution also integrates with the e-commerce platform's backend systems to provide accurate and up-to-date delivery notifications (email or SMS)to customers.

  1. Personalized delivery options

Personalized delivery options are another way to enhance the delivery experience and build customer loyalty. Customers have diverse needs and preferences when it comes to delivery, and e-commerce platforms need to cater to these needs to provide a seamless delivery experience.

FenixCommerce offers a range of personalized delivery options, such as same-day delivery, in-store pickup, ship-from-store and flexible delivery windows. These options enable customers to choose a delivery method that suits their schedule and preferences, leading to higher customer satisfaction and loyalty.

  1. Delivery performance analytics

Delivery performance analytics is a powerful tool that helps e-commerce platforms measure and optimize their delivery performance. It provides valuable insights into delivery accuracy, shipping costs, carrier performance, and customer satisfaction, enabling e-commerce brands to identify areas of improvement and optimize their delivery strategies.

FenixCommerce offers a delivery performance analytics dashboard that integrates with the e-commerce platform's backend systems to provide real-time data and insights. It enables e-commerce brands to track and analyze delivery performance across multiple carriers and shipping methods, leading to better decision-making and improved delivery performance.

  1. Proactive customer support

Proactive customer support is essential for building customer loyalty and enhancing the delivery experience. It involves proactive communication with customers throughout the delivery process, providing updates, and addressing any issues or concerns promptly.

FenixCommerce offers a proactive customer support capability that enables e-commerce brands to provide personalized and proactive communication with customers. It includes automated delivery status notifications, individual response and real-time support, leading to higher customer satisfaction and loyalty. Through Fenix’s order tracking APIs and platform integrations, data on delivery dates and status can also be exposed to popular Customer Support SaaS tools, for faster, more accurate order-status responses.

  1. Shipping promotions (Product and/or Customer-specific)

Instead of heavily discounting an item and potentially degrading brand image, Retailers can apply targeted or temporary shipping promotions to a specific product or product line. Shipping an $80 shirt for free is typically less expensive than offering a 30% discount. Same consideration for specific customers (see Loyalty Programs below) where repeat customers can be further rewarded with discounted shipping, that also leverages the initial CAC investment.

How Fenix Helps

Fenix offers a host of features that help retailers and DTC Brands retain customers or engage existing users (think cart abandonment opportunities). 

Dynamic EDD

One such feature is the dynamic EDD that can be inserted into outbound marketing pieces such as emails or SMS. By leveraging the EDD that is already shown on the Product Detail Page (PDP) and including it in automated Cart Abandonment (CA) notifications, e-commerce brands can retarget abandoned cart customers and improve their chances of converting those customers into paying customers.

Loyalty Programs

Adding shipping promotions to an existing customer loyalty program is another way to improve the delivery experience and build customer loyalty. Many e-commerce brands already have some type of Loyalty Program for favored/repeat customers, and offering special promotions such as free 2-day delivery just for the Loyalty or Member customers can make that existing program even more attractive and effective.

Focus on Retention Today

In conclusion, enhancing the delivery experience is crucial for retaining customers and building brand loyalty in the e-commerce industry. E-commerce platforms need to focus on providing fast, reliable, and hassle-free delivery services that cater to customers' diverse needs and preferences. FenixCommerce's delivery solutions are designed to enhance the delivery experience and reduce CAC by focusing on customer retention and increasing loyalty. When additional results like increased conversion lift are also included, Fenix solutions start paying for themselves almost immediately. By implementing these solutions, e-commerce brands can improve customer satisfaction, reduce churn, and achieve sustainable growth.

Akhilesh Srivastava

Author: Akhilesh Srivastava
Founder and CEO of FenixCommerce

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