Increase Your LTV By Making More People Rich

Let’s cut straight to the heart of the matter: growth and retention teams for DTC brands should not be two ships sailing in different directions. The reality is, if they don’t share the same KPIs, the brand's strategy will go nowhere fast. Eli Weiss, VP of Retention Advocacy at Yotpo, unpacks this on The Longer Game, giving us a crash course on building lasting value in ecommerce, one customer at a time. Buckle up – it’s time to rethink how you’re retaining customers. After all, retention means keeping them for the long haul, and that starts with truly knowing who they are. Don’t know them yet? Time to start asking better questions.

🎓 The Real-Life MBA: Skills That Matter 

The ecommerce world is packed with individuals who’ve earned their "real-life MBA." Unlike traditional degrees, these are built through hands-on experience, often involving juggling multiple roles in smaller companies. This scrappy, multi-skilled approach shapes leaders who know not only what to do but how to do it in the most effective way.

In smaller companies, taking on multiple roles often means learning customer service, data analysis, and maybe even a bit of coding. This well-rounded experience builds a unique foundation for those leading in ecommerce as they expand their reach, often revealing insights and skills that formal education might miss.

📧 Personalization Over Frequency: The Limit on Messages 

When it comes to customer engagement, less is often more. There’s only so many emails or SMS messages you can send before they lose impact. Today, personalization far outweighs the sheer number of messages. Building long-term relationships with customers means being selective about who enters your funnel and focusing on nurturing that connection.

Retaining the right customers, rather than any customers, can save costs and improve engagement. Start with email to establish rapport, before moving to higher-cost tactics like SMS. By building phased communication strategies, brands can ensure they don’t burn out valuable leads too quickly.

🎯 Quality Leads Make Quality Customers 

Not every lead is equal. Acquiring customers cheaply might look good on paper, but if they don’t truly connect with your brand, they won’t stay long. Think about it: would you rather have ten low-LTV customers who churn quickly, or two high-LTV customers who cost more to acquire but generate significantly greater revenue over time?

Prioritizing quality leads is essential for sustainable growth. While high-quality customers might have a higher CAC (customer acquisition cost), their loyalty and repeat purchases make them invaluable in building a strong, lasting brand.

🚀 Growth and Retention: Unified for Impact 

Growth and retention teams too often operate in silos, focused on separate metrics. This creates tension and, worse, confusion. Aligning growth and retention on shared KPIs ensures that the brand isn’t just throwing money at short-term gains, but investing in a loyal customer base.

For example, if your growth team is attracting new customers with discounts, what’s the follow-up? The retention team should have a plan in place to keep those customers coming back, rather than letting them disappear after that initial purchase. Unifying the goals of both teams makes this possible.

📊 Test, Cohort, and Ask the Right Questions 

Want to boost retention without guessing? Start testing. Understanding customer retention involves cohort testing, where customers are grouped to track LTV alongside CAC. This data-driven approach enables brands to see which customers actually bring value, moving beyond gut instinct.

Once you have a cohort view, you can ask sharper questions: Are we reaching the right customers? Are they resonating with our brand long-term? This isn’t about quick wins but building a system to identify and nurture high-LTV customers.

🔄 The Key to Retention: Know Thy Customer 

Retention means keeping people around but that starts with knowing them well. Today’s brands need to move beyond generic personas and dig into actual customer data. Ask the right questions to reveal who they are, what they care about, and how they want to engage with you. The days of forcing customers into certain behaviors are over. Winning brands today are customer-centric, adaptable, and focused on making retention a journey, not just a KPI.

🔥 Ready to Dive Deeper? Watch the Full Episode! 

If you’re ready to refine your retention strategy, this episode dives into aligning growth and retention, focusing on quality leads, and building long-term customer value. Don’t miss out – watch the full conversation on The Longer Game! Give our page a follow to stay in the loop for more insights on building brands that last.