Nickis
BRAND
NICKIS
INDUSTRY
Fashion & Apparel
RESULT
+$1,251,000

Unlocking Exponential Growth for NICKIS with First-Time Buyer Retention

+12%
Repeat Customers
+$1.25M
Yearly Revenue
+5%
Additional Revenue
NICKIS is the world's leading retailer of luxury children's fashion. Founded in 1985 as a family-run offline store, NICKIS has gradually expanded to an online experience selling high-end apparel from brands such as Gucci, Moncler and Bonpoint.

Here's how the NICKIS team leveraged RetentionX to drive more customers to place a second order. As a result, not only was the profitability of each customer improved, but an impressive $1,251,000 increase in revenue was achieved in one year.
Insights
Once NICKIS started using RetentionX and analyzing their repeat purchase rates, it became evident that they excelled at converting second-time buyers into loyal customers. In fact, they were even outperforming the benchmarks within their industry. Despite this, NICKIS identified growth potential in their conversion rate from first to second-time buyers, as they fell 7% short of industry benchmarks.

This indicates that the second order is crucial for NICKIS to develop loyal customers.
Actions
In order to set up the best possible strategies for engaging with one-time buyers, it was crucial at NICKIS to understand what actually differentiates one-time buyers from repeat customers. For this purpose they used the RetentionX segment builder and analyzed the buying behavior of both customer groups.
In the process, one key insight was: the ideal time window to encourage a second purchase was approximately 90 days after the first purchase.

Based on their analysis, the NICKIS team was able to develop a multi-faceted customer engagement strategy for one-time buyers. The strategy included the following:
1. Personalized Marketing Campaigns
With the aim of inspiring their customers to make a second purchase with relevant product recommendations, the Follow-up Purchases analysis delivered insights into their customers' product journeys. This allowed NICKIS to understand which categories and brands customers had shopped most often in their second order - depending on their first order. As a result, the best product recommendations for the next purchase were determined for each individual customer. At the 85-day mark, the team started sending personalized emails, text messages and push notifications to single-purchase shoppers. Just before the critical 90-day reengagement mark, these messages offered product recommendations based on customers' initial purchases. Since customers were still in the post-purchase satisfaction phase, they were more open to the brand's communication.
2. Outbound Customer Service
NICKIS has been committed to excellent customer care since its early days and maintains a close relationship with its customers.
To put the insights into practice, NICKIS gave their Customer Care agents access to all these insights - right when and where they needed it: In Zendesk! Having all the insights at hand laid the foundation for transforming the team into an outbound team that proactively reaches out to first-time buyers. The focus was set on active customers identified by RetentionX's RFM Analysis as "High Potentials". The team assists with questions, offers style advice, and promotes upcoming offers. This approach transformed the support team into a true profit center.
3. Retargeting Ads
To target their customers holistically and inspire them to make their second purchase, retargeting ads were initiated around the 70-day mark. These kept NICKIS brand visibility alive and piqued customers' interest with products similar to what they had previously purchased.
4. Exclusive Offers
However, even with the right timing and relevant content, not all customers will make a second purchase. As an additional incentive, NICKIS offers first-time buyers special discounts to reward them on their second purchase. These discounts are promoted only after the expected next purchase date has passed significantly. This approach guarantees that NICKIS does not compromise on its gross margin by giving discounts to customers who would have made a second purchase anyway. Reminders for these exclusive offers are sent 105 days after the first order, leading to an X percent increase in second-purchase conversions within six months.
Results
The best customers are the ones you already have! By focusing on first-to-second order conversion rates, NICKIS increased its repeat purchase rate by 7 percentage points, placing them in the top 25% of their industry. The impact of this strategy will be even more significant in the long run. Data shows that customers who made a second purchase tend to place three more orders. Thus, each conversion from first to second purchase resulted in an exponential increase in total orders and sales. This strategic change translated into an additional $1,250,000 in annual revenue.
“We always believed our repeat purchase rate was great. But with RetentionX, we were able to tackle when we lost the most customers - the conversion from first to second order.”

Fabian Bender
Founder & CEO of NICKIS