It’s what you do with them

In partnership with Klaviyo, marketing effectiveness expert James Hurman presents new research that challenges a long-standing assumption in eCommerce: that customer retention is the most reliable path to growth. Drawing on data from over 1.7 million customers and $1.2 billion in sales across Australia and New Zealand, Hurman’s analysis reveals that brands retaining fewer customers but increasing their spend achieve significantly higher growth than those focused solely on maximising retention.

 

Key findings include:

 

– Why deepening relationships with the right customers matters most for growth
– Why loyalty programmes are not necessarily effective drivers of retention or revenue growth
– How emotional connection significantly increases customer spend
– The critical role of customer service in shaping emotional sentiment toward a brand