How to retain customers when the product is generic?
How to retain customers when the product is generic?
Many businesses deal in generic goods – marketplaces, dropshipping shops, distributors and service aggregators. They do not have a unique product that in itself fosters loyalty: competitors sell the very same thing, often at the same price. In this situation, increasing LTV (lifetime value) becomes a matter not of the product itself, but of communication and customer retention. In this article, together with experts from Selpway Trading, we’ll explore which tools actually work.
The absence of a unique product does not mean a lack of loyalty. Customers choose not only the product itself, but also the shopping experience: speed of delivery, ease of returns, personalised offers, and a sense of being looked after. Retention strategies are built precisely around this experience, rather than around the product’s specifications. This means that a retailer can compete on service where they cannot compete on product range.
Why generic products aren’t a death sentence
Email marketing remains one of the most underrated retention channels, particularly for shops selling generic products. A well-structured email sequence does not sell directly, but maintains contact: reminders about abandoned trolleys, personalised selections based on purchase history, and emails with useful content related to the product. The key mistake made by most companies is using email solely for sales promotions. This burns out the customer base and reduces open rates. Selpway Cyprus points out that a successful model is built on a balance: 70 per cent value and engagement, 30 per cent direct offers.
Email as a retention tool
The subscription model allows you to turn a one-off purchase into recurring revenue. Even if the product itself is not unique, a subscription offering free delivery or after-sales service creates a habit and reduces the likelihood of customers switching to a competitor. It is important that the subscription solves a specific problem for the customer – saving time, guaranteed availability of goods, a fixed price – rather than simply being a way to collect money in advance.
As for loyalty programmes, SELPWAY managers believe that traditional points-for-purchases schemes are becoming less effective because they are copied by everyone and are no longer perceived as having any value. More effective are programmes that grant customers status, early access to products or exclusive promotions, and personalised service terms. This approach fosters an emotional connection that is difficult for a competitor to replicate, even if they offer exactly the same product range.
As for loyalty programmes, SELPWAY managers believe that traditional points-for-purchases schemes are becoming less effective because they are copied by everyone and are no longer perceived as having any value. More effective are programmes that grant customers status, early access to products or exclusive promotions, and personalised service terms. This approach fosters an emotional connection that is difficult for a competitor to replicate, even if they offer exactly the same product range.
Subscriptions and loyalty schemes
All the tools listed above only work if there is high-quality customer data available: purchase history, website behaviour, and responses to email campaigns. Without segmentation, emails become spam, and loyalty schemes become a mere formality. Companies that systematically collect and utilise this data are able to make targeted offers to precisely those customers who are ready to accept them, and at exactly the right moment.
Increasing LTV for a generic product is possible, but requires a shift in focus from the product to the customer relationship, Selpway Trading concluded. Email, subscriptions and well-designed loyalty programmes are not disparate tools, but parts of a single customer retention system that only works with a systematic approach and a data-driven foundation.
Increasing LTV for a generic product is possible, but requires a shift in focus from the product to the customer relationship, Selpway Trading concluded. Email, subscriptions and well-designed loyalty programmes are not disparate tools, but parts of a single customer retention system that only works with a systematic approach and a data-driven foundation.