🍯 3 Examples of World-Class Retention

Hello DTC savage,

It’s no secret: Paid media fuels growth. But if you're only chasing new customers and ignoring the ones you already have, you’re leaving serious profits on the table.

Here’s the kicker: A 5% increase in retention can drive 25%+ profit growth.

Retention is where profitability scales.

Today, I’m breaking down 3 customer retention strategies from a few brands worth stealing from.

1. Reward Loyalty like Amazon Prime

Every business’s dream is loyal customers - but loyalty needs an incentive.

Amazon nails this with Prime, their yearly subscription program offering:

• 2-day free shipping

• Exclusive access to Prime Video

• Prime member discounts

• Perks like ad-free music streaming, free Kindle ebooks, and more

It’s not just perks; it’s customer-centricity that keeps customers hooked.
Amazon’s refund and replacement policies create a hassle-free experience that customers trust.

The results?

• 93% retention rate after one year, climbing to 98% after two years

• 85% of Prime members visit Amazon weekly

• The average Prime member spends $1,400 per year, compared to $600 for non-members

When customers feel rewarded, they’ll invest more time and money into your brand.

2. Say "Thank You" Like Allbirds

Never underestimate the power of a simple thank-you.

Allbirds takes this further with their post-purchase email strategy.
Instead of a boring order confirmation, they send:

• A thank-you email with a fun GIF

• A personal note to make customers feel appreciated

Here’s where it works:

• Builds trust and connection

• Encourages repeat purchases

And it pays off:

• Allbirds sees an impressive 75% customer retention rate

When to send thank-you emails:

• After purchases

• Celebrating milestones (yours or theirs)

• Loyalty program achievements

• When a product’s lifecycle ends

Gratitude builds trust - trust builds loyalty.

3. Build Referrals Like Evernote

Your most trusted marketing channel? Your customers.

People trust recommendations from friends and family far more than direct messaging from brands.

Evernote capitalized on this by creating a referral program. Here’s the idea:

• Users refer friends to join Evernote

• They earn free Premium trials when their friends sign up

Why it works:

• Referrers feel rewarded

• New customers arrive with built-in trust

The best part? Referrals keep your current customers invested while expanding your audience cost-effectively.

Takeaway

Acquiring new customers is important, but retaining existing ones yields far greater profitability.

Turn one-time buyers into loyal advocates:

• Reward their loyalty

• Show them gratitude

• Encourage referrals

Retention is the foundation of long-term growth.

Lastly, I would love to chat with you on LinkedIn if we aren’t already connected.

Talk soon,
Feras