How Can Arts & Crafts Brands Maximise Customer Value?
Back in March 2020 the market for online crafts spiked by an extraordinary 71% as a result of UK households suddenly being locked down in their homes. Hours spent indoors were enlivened by a newly found enthusiasm for knitting, jigsaws, painting and sewing.
Two years on and many arts and crafts brands are now consolidating the growth they’ve experienced over the past two years. The market is no longer ‘niche’ and new customers tend to be “younger, more ethnically diverse, less dominated by graduates and with lower specialist knowledge.” So, what are the expectations of these new crafting enthusiasts, and how can eCommerce businesses maximise their customer value?
A New Kind of Crafting Consumer
Traditionally, crafting consumers have been skilled, knowledgeable, and discerning about the products they wish to purchase. So why the shift to a younger, less specialised demographic? Research suggests that TV programmes, magazines, and online groups have reframed the sector as an activity which facilitates self-care, digital detoxing, and mindfulness.
A younger consumer, who is searching for experiential retail with therapeutic benefits is likely to research the market on Google and buy via Amazon. They will, therefore, expect shopping to be synonymous with speed, easy pay options, item tracking and frictionless returns. Most likely they will expect a personalised retail experience with sustainable, attractive packaging, and value-adds as part of the ongoing relationship.
5 Ways to Increase Customer Lifetime Value
The priority for many arts and crafts eCommerce businesses is now to focus on the new customers they have attracted in order to maximise their lifetime value (CLV). The Customer Lifetime Value is the “total worth to a business of a customer over the whole period of their relationship.” The way to maximise a CLV is to create a relationship that keeps developing for the customer. Here’s 5 ways that can happen:
1. Provide Excellent Customer Service
If you’re starting a new hobby, or buying into a new experience, you’re excited to get started. Having to wait for delivery, or receiving damaged goods is likely to make you switch providers. Make sure, therefore, that every touch point with your brand is customer-centred, whether it’s purchasing, queries, tracking or returns.
2. Omnichannel Support
How do shoppers want to engage with you? And have you offered them options, or made assumptions on their behalf? Find out what their preferences are and offer plenty of opportunities for customers to offer feedback. eCommerce is more than a transaction; it’s an ongoing conversation in which retailers learns about their consumers and enhance the value they offer as a result.
3. Offer a Loyalty Programme
What benefits do you offer to loyal customers? A loyalty programme encourages consumers to place repeat orders by offering discounts, special promotions, or discounts. This could take the form of a card, an app, or a points system which increases in value each time a purchase is made.
4. Personalised Purchasing
How you buy is often as impactful as what you buy. Subscription orders allow you to receive regular kits, for example, offering a project – complete with materials and instructions – to complete each month. Alternatively, you could offer personalised products, or offer product suggestions that align with prior purchases.
5. Eliminate Pain Points
Collect and utilise customer data, or feedback in order to understand where the purchasing pain points occur, and then eliminate them. A typical example is returns; arts and crafts customers need to know that they can return items quickly and easily. A quick and frictionless returns process is likely to help you keep at least 50% of the shoppers who experience it.
Looking for 3PL Support?
If you are looking for a 3PL partner who can help you to maximise your Customer Lifetime Value, we would love to talk to you. At Prolog we’re currently working with arts and crafts eCommerce businesses that have experienced rapid growth during the pandemic and are now consolidating their growth and scaling their operations.
We specialise in warehousing, picking and packing, shipping and returns for businesses focused on hobbies, crafting and arts-based activities. If you’re looking for a 3PL partner that has the experience and expertise to take you to the next level, we’re here to help.
