How to not lose a customer in ___ days (fill in the blank with your store’s lapse point). What’s a lapse point you ask? Glew defines it as “the number of days that can pass before a customer is likely to never make a purchase from you again. Lapse Point tells you where your customers fall on that timeline - and which ones you need to focus on retaining before they're lost!”
Why is Lapse Point Important?
Ever heard the old saying, “timing is everything”? Well, it most certainly is - and eCommerce is no exception to this adage. In general, if you engage your customer too late you can lose them to competitors AND if your timing is too early, you could risk bothering the customer before they’re ready to buy again.
For our visual people, check out the graphic below put together by our friends at Glew.io👇👇👇
How is Lapse Point different from LTV?
LTV, or Lifetime Value, is defined as an estimate of the average revenue that a customer will generate throughout their lifespan as a customer. This 'worth' of a customer can help determine many economic decisions for a company including marketing budget, resources, profitability, and forecasting.
This is different from Lapse Point because it’s more of a passive metric. Though valuable, LTV doesn’t tell you much about the stage of a customer or the amount of time that you truly have before losing them. Lapse point gives you more insight into how to grow LTV!
Different types of businesses have different challenges when it comes to Lapse Point.
Consumables, like cosmetics or CPGs, have shorter lapse points than businesses that sell clothing and accessories. For most, consumables and subscriptions are ideal business models, but that’s not the reality for all.
So how do businesses across the board approach lapse point and ultimately keep the customer for as long as possible?
How to bring back “lost” past purchasers:
Win Back Series
Segment disengaged customers
Using the RFM matrix in tandem with Lapse Point Data can help you determine the best way to approach your customers. Like many say, “timing is everything.” With your new “disengaged customers” segment, you can now treat these customers more uniquely based on their history, frequency, and recency of purchase.
Here’s a look into what the RFM matrix can tell you about your list:
The best defense is offense
How to keep your customers engaged throughout their entire journey and customer lifecycle:
#1️ : Meet them where they are
Knowing your customer and their preferred channels are crucial components for high long-term engagement and loyalty.
For example, If you have a massive Gen Z audience, it’s likely that they aren’t spending hours a day on Facebook. So, meeting them somewhere like TikTok, where 20% of the generation spend 5+ hours on per day would be a better bet.
How to find out “where they are”?
One of our favorite all-encompassing (and most accurate) reporting tools is Glew.io - they can give you a breakdown of where customers are coming in from and other key reporting metrics that are pulled in from all channels (including Google analytics).
#2️ : Know their frequency preferences
If you don’t know, ask. Whether it’s through an email campaign, social media, or your site’s chat, retaining customers is about finding the right balance of communication and engagement. Simply asking them about their preferences can help you find this balance more quickly and accurately.