Are you a D2C brand seeking Customer retention? Learn what, how, and why, here!

Written by Vanshitha M

Published on Nov 3, 2023


The world of D2C brands (Direct-to-consumer businesses) is booming. With online shopping being the biggest D2C, India is the third largest online shopping user! India is home to over 800 D2C brands and is projected to meet a staggering $100 billion by 2025. So this growth would mean intense competition! Here’s an eye-opener: Acquiring a new customer costs five times more than retaining old users. So, sit back and dive to understand how to retain your customers effectively.

What is customer retention?

Activities and Campaigns that will reduce customer abandonment and keeping them engaged with your biz. The art of it all is to convert one-time users to returning users, you can lower the churn rate and establish a loyal consumer base.

D2C Brand has a direct line to communicate with customers, thanks to the data they’ve shared. Rather than focusing on selling bulk products, D2C Brands can nurture a better product and deeper understanding of the user.

You have already gained the trust of some users, make sure to level up and secure loyalty!

Customer Retention Rate formula: No. of customers at the end of the period-No of customers acquired during the period/No of customers at the start of the period*100


Metrics to calculate Customer Retention!


  • Average Oder Value (AOV): Amount spent by users to buy products of your brand.
  • Repeat Customer Rate: Customers returning after making their first purchase.
  • Purchase Frequency: How frequently purchases are made.

Why customer retention?

  1. Let’s debunk a myth: Many believe that acquiring new customers is easier and fruitful but the truth is that the existing customers already know your brand and you’ve already secured a spot in their minds. They are already familiar with your environment so would be encouraged to buy again.
  2. According to a study, increasing retention by 5% can increase profits by .
  3. The likelihood of converting unknown users hovers at a modest 5-20% while the probability of known users buying is 60-70%.
  4. With less effort in acquiring, you can focus on the growth and enhancement of your product.
  5. Customer satisfaction can give you word-of-mouth marketing! Remember that satisfied customers are your best retention strategy.

Improving Customer Retention:

Source: socialbeat

  • Customer expectations: Be real about what your company really is! Communicating your values aligns you with the right customers.
  • Connect: Connecting with users is the best way to discover the gaps in your product and deliver on your promises.
  • Personalized: Even when you are connecting, make sure every mail or message you send should be tailored to their behavior. Relay your product’s purpose and how it can help your user perfectly. According to a report by McKinsey, 76% of users feel frustrated if they don’t have a personalized experience with a brand.
  • Proactive approach: Become the biz that truly understands the user and review the feedback more.
  • Use metrics to understand why users are leaving your brand for your competition.
  • Relate, Gratitude, Feedback: All of your content should resonate with your users or they won’t get connected to your product. Show gratitude to your customers and make them feel valued. Feedback is your golden ticket to improve your product.
  • Discount: Offer discounts to the existing customer to mark their importance.
  • Welcome emails can be an effective way to reduce your churn rate. Find out more about this strategy here(Attach the blog on the welcome email campaign).
  • Leverage social media to connect, personalize, understand, and offer discounts! 70% use social media to identify new products and 47% use it to voice out their opinions.
  • Testimonials: Make sure to add testimonials and other user-generated content on social media

Source: velocity

  1. Experiment: A/B testing can be the best way to know what content sticks with your audience.
  2. Loyalty Programs: Be it points or discounts for purchases, it can help you retain the loyalty of the users.
  3. A seamless User Experience: Ensure hassle-free delivery, easy returns, and regular app/website updates to provide a top-notch user experience.

According to a quote by Noah Fleming, “I don’t believe you close a sale, you open a relationship”


If understanding all the jargon is giving you a tough time, We can help you! Retention10 is the best Customer Retention Manager. Book a call with us right away so you get hassle-free ideas and analysis of A-Z on your company.

Why Retention10?

Retention10 can help you decode all the intricacies of customer retention. Retention10 can help you with content that sticks, Campaign management, Identifying and solving funnel drop-offs, and keeping you updated with all the changes in the digital marketing world!


In a nutshell, understanding your users and ensuring their satisfaction is the key to retaining your customers effectively. While acquiring new customers is essential, mastering the art of retention can be even more rewarding. The efforts invested in retention should not be underestimated; they can yield powerful results.


Book a call with us right away to explore the full spectrum of customer retention techniques and make sure you don’t miss out on any opportunities.


Book a call with Retention10 now to revolutionize your customer retention strategies!

Thanks for reading.

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Vanshitha Munipally
( Research & Content Marketer )

To get your customized Customer Retention , Do write to us :

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