The Formula has built a community on educating its customers
Posted: Mon Feb 17, 2025 10:41 am
Customer retention is the key to sustainable and long-term growth for ecommerce brands. According to our data at Smile.io, on average, the top 10% of customers spend 2 times more per order than the lower 90%. If you can get a repeat customer, their AOV increases. Furthermore, the top 1% of customers spend 2.5 times more than the lower 99%.
Take a look at the brand communities of some of the most luxurious brands in the world, like Rolex watches, Porsche cars, or Montblanc pens. We all know someone (maybe yourself) who is a die-hard fan and would never consider purchasing from a competitor — whether you have the money to buy one or not.
?
Your online brand community has the potential to increase customer retention, which is about keeping loyal customers, as opposed to recruiting new ones.
When your community members are connected to your brand and the community around it, it creates a switching barrier. Customer loyalty follows if you’re continuing to meet customers’ expectations. As a result of their dedication and investment in the community, they won’t be as price sensitive and will be less likely to shop around and even increase their AOV.
screenshot of skincare brand the formula's blog
You don’t have to be a luxury brand like Rolex for this to work for your instagram database brand either. Skincare brand, The Formula has built a community, around the value and benefits of using its products. From YouTube tutorials to blog content, The Formula works hard to communicate the benefits of its products to its community.
By tapping into the emotions attached to looking and feeling your best, they’ve built an online brand community, without having to consider lowering their prices to be the cheapest beauty brand on the market.
The Ultimate Guide to Customer Retention in 2023
This guide to customer retention has everything you need to know. Strategies, tactics, tools, and full stack retention along with some examples.
Take a look at the brand communities of some of the most luxurious brands in the world, like Rolex watches, Porsche cars, or Montblanc pens. We all know someone (maybe yourself) who is a die-hard fan and would never consider purchasing from a competitor — whether you have the money to buy one or not.
?
Your online brand community has the potential to increase customer retention, which is about keeping loyal customers, as opposed to recruiting new ones.
When your community members are connected to your brand and the community around it, it creates a switching barrier. Customer loyalty follows if you’re continuing to meet customers’ expectations. As a result of their dedication and investment in the community, they won’t be as price sensitive and will be less likely to shop around and even increase their AOV.
screenshot of skincare brand the formula's blog
You don’t have to be a luxury brand like Rolex for this to work for your instagram database brand either. Skincare brand, The Formula has built a community, around the value and benefits of using its products. From YouTube tutorials to blog content, The Formula works hard to communicate the benefits of its products to its community.
By tapping into the emotions attached to looking and feeling your best, they’ve built an online brand community, without having to consider lowering their prices to be the cheapest beauty brand on the market.
The Ultimate Guide to Customer Retention in 2023
This guide to customer retention has everything you need to know. Strategies, tactics, tools, and full stack retention along with some examples.