They also create various types of incentives. You get $5 off. You get free shipping. 50 points are added to your account - ANDY you get the option for a free full size item.
This layering of incentives is a common theme in e.l.f.'s customer retention strategy.
Customer Retention Tactic 2: Overcoming Bad Experiences with Pre-Emption, Apology, Free Shipping, and Free Moneys
How do you handle late shipping times?
e.l.f. recognizes when a shipment is delayed. And they don't pull any punches in their response.
Here is a screenshot of the email they send out.
Notice how they take a bad experience and use it to ensure a repeat purchase.
They apologize. They recognize me as a first-time customer, and stand by the value they create in generally on-time deliveries.
All of this is done without complaint from the customer. Instead, it is triggered when there is a delay in shipping.
This is key.
Customer's don't always voice their displeasure. Taking initiative is key to customer retention.
Customer Retention Tactic 3: Creating a Tiered Loyalty Program that Rewards Lifetime Value, not Transactions.
Loyalty programs should focus on lifetime value, and hedge against rewarding transactional behavior.