The importance of strategically-led retainers for ecommerce merchants

The importance of strategically-led retainers for ecommerce merchants

LoyaltyLion interviews George Linton, Head of Strategy at By Association Only

As well as our award-winning design and development services By Association Only has a large dedicated department that offers strategically-led retained ecommerce services.

These services support merchants in growing their businesses by offering expert insights and strategic advice alongside the standard production resource of UI/UX and development.

Ecommerce customer loyalty and engagement platform LoyaltyLion recently sat down with our Head of Strategy George Linton to find out more about how it works, and why retainers are beneficial to merchants and agencies alike.

Here's a snippet...

The interview:

1. Agencies tend to work with merchants on a project-only basis. Why are strategically-led retainers so crucial to your business?

At By Association Only we work with clients on both retainers and project-specific work.

A project might be a new website or migration to Shopify. We also carry out work where different types of technical expertise are required, such as creating a custom app or particular piece of technical functionality.

Our strategically-led retainers were created to offer merchants ongoing, proactive strategic support and insights beyond the scope of a traditional retainer method – our team is truly integrated with yours so has a deeper understanding of your wider business objectives.

Strategically-led retainers are beneficial for merchants as they provide access to experts with specialised knowledge that may not be easily hired internally. For the agency, retainers allow us to continuously work with leading ecommerce brands across multiple industries, staying at the cutting edge of the ecosystem.

2. Who is the ICP (ideal customer profile) for your Strategic retainers?

Since 2010, we’ve primarily worked with design-conscious luxury brands in fashion, lifestyle, and cosmetics. Our clients range from ambitious merchants like Joseph Joseph, Victoria Beckham, to Oh Polly, all known for their incredible products and brand storytelling. Their teams vary from small ecom teams to those with over 50 employees in ecom and marketing.

The way we’ve architected our Strategically-led services team really helps bridge the traditional gap between client and agency and offers a more fluid, integrated approach to these relationships.

You can read all of our existing case studies here.

3. What sort of research do you conduct for merchants as part of a Strategic retainer?

Every merchant is different and has their unique requirements, though, of course, we always look at topline metrics including conversion rate, average order value (AOV), retention rate and so on.

We then delve into each of these areas to understand what’s really going on, as looking at certain metrics in isolation can be very misleading.

Take conversion rate, for example. By breaking down customers into segments such as new visitors versus old, one geographical region compared to another or one channel versus another, you get a much more detailed understanding of what’s going on.

We also take into consideration the various verticals that our merchants operate within and the tech stacks associated with each merchant. Fashion brands, for example, often have high return rates when compared with say, food and beverage brands.

Equally, clients with higher-priced products might have significantly fewer repeat purchases than a brand boasting a subscription model. We research each merchant individually and consider the data relatively.

4. What support does a client with a strategically-led retainer receive?

Merchants who opt for our Strategy programmes receive an extremely high level of support, including:

– Dedicated ecommerce account strategist
– Resource – design, development, marketing, CRO, ecommerce strategy
– Proactive engagement and solutions from our team of ecommerce experts
– Led by our Head of Merchant Strategy and Head of Strategy
– Bespoke digital roadmaps
– Opportunity reports
– Monthly / Quarterly KPI reports and more

Our team of experts reviews each new merchant and suggests which level of engagement would most benefit them.

The number of production days – design, development, or marketing time – purchased will help dictate the amount of strategic support given. How those production days are allocated depends entirely on the requirements and digital ambition of the merchant.

Our Strategy team creates regular performance reports for our merchants, focusing on pre-agreed KPIs. We then present ideas for improvement in accordance with our findings, inform merchants of any new and exciting developments in the ecosystem and plan for the following months.

5. What are the success criteria for merchant Strategy programmes?

Success is defined by achieving the goals and objectives outlined at the start and throughout the program. We believe in setting multiple targets across various metrics to promote genuine and healthy growth, avoiding narrow financial goals that may compromise overall performance.

As Goodhart’s Law states, “When a measure becomes a target, it ceases to be a good measure”. In other words, if you target too specifically to achieve certain – often financial – goals you often compromise true performance.

As an example, a merchant might have a target to grow their revenue by X amount over X period of time. Whilst this could be achieved by discounting heavily, the merchant might undermine other metrics, such as profitability.

Read the rest of the interview here.

About LoyaltyLion
LoyaltyLion supports ecommerce growth by connecting marketing strategies. Providing meaningful customer interactions through points-based incentives and reward programmes.

About By Association Only
By Association Only is the Shopify Plus agency for the world’s most design-conscious luxury brands. Get in touch to discover how our team of experts can support your brand’s Shopify ambitions.

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