Latest / The Retention Marketing Podcast with Fexingo: Email, SMS, and Loyalty for Repeat Customers / How On Running Uses Restock Alerts to Drive Repeat Purchases
Transcript
- Lucas: Last month, On Running released a limited-edition colorway of their Cloudmonster sneaker. It sold out in a few hours. But they didn't just move on. Luna: They captured email addresses from people who missed out, right? Restock alerts are a pretty common e-commerce tactic. Lucas: Exactly. But what makes this interesting for retention is who they're targeting. It's not just anyone who signed up. On Running segments by previous purchase history. If you've bought a pair of shoes from them before, your restock alert sequence is different from a first-time browser. Luna: So the repeat customer gets a different email? What changes? Lucas: The copy leans into loyalty. Something like: 'You already know the fit. Here's your chance to grab the color you wanted.' They also suppress the sequence if the customer already bought a similar model recently, to avoid cannibalizing recent sales. Luna: That's smart. But what about SMS? I know they use SMS for urgent restocks too. Lucas: They do. For drops that are expected to sell fast again, they send an SMS to anyone who opted in specifically for that product. Only for that product. And they only send one message if stock is back, not a series. It's permission-based and very targeted. Luna: What kind of conversion rates are we talking about? Is this worth the effort? Lucas: According to data On Running shared in a case study, their restock alert emails convert at 18 percent. That's above the average for promotional emails. And here's the retention kicker: customers who came back through a restock alert spent 40 percent more over the next twelve months than their average customer. Luna: Forty percent higher LTV? That's huge. So restock alerts aren't just about recovering a single sale — they're building a loyal repeat buyer. Lucas: Right. The logic is that someone who cared enough to sign up for an out-of-stock notification is already highly engaged. When you help them get the product they wanted, you reinforce that your brand is listening and responsive. That goodwill translates into future purchases. Luna: It also feels very personal. Unlike a general 'back in stock' email that goes to everyone, this is triggered by their specific interest. Lucas: Exactly. They also A/B test the timing. For email, they found that sending the restock notice within an hour of inventory landing beats waiting 24 hours — conversion jumps by about 25 percent. So speed matters. Luna: But there's a risk: if you send too many restock alerts, customers might start ignoring them or opt out. How do they manage fatigue? Lucas: They cap it at one alert per product per customer. If the product restocks a second time, you only get notified if you opted in again after the first alert. And they don't send alerts for products you've already purchased. So it's very disciplined. Luna: That makes sense. I'm also curious about the SMS side. Do they use SMS for all restocks or just high-priority drops? Lucas: Only for limited-edition drops that are expected to sell out again quickly. For standard restocks of core styles, they stick to email. SMS has higher urgency and a higher unsubscribe risk, so they reserve it for the most time-sensitive, high-demand items. Luna: That's a good rule of thumb. If everything is urgent, nothing is. Lucas: Now, one of the less obvious benefits is data enrichment. When a customer signs up for a restock alert, On Running learns exactly what product attributes they care about — color, model, size. They use that data to personalize future recommendations and even inform production decisions. Luna: So the restock alert becomes a survey in disguise. You know exactly what your customers want, not through a formal questionnaire but through their behavior. Lucas: Exactly. They've even used the data to decide which colorways to reissue. If a certain color gets a lot of alerts, they know it's worth bringing back. Luna: That's a retention loop that goes beyond email — it feeds back into product strategy. Very cool. Lucas: The big question for any brand considering this is: what's the cost? Setting up the opt-in, the triggers, the segmentation — it's not trivial. But for a brand that does limited drops, the ROI is clear. Luna: And if you already have a robust email and SMS platform, it's mostly a matter of mapping out the logic and writing good copy. Lucas: If you've been experimenting with restock alerts — or any of the tactics we talk about on this show — we'd love to hear about it. Reach out on social or leave a review. Luna: And you know, the reason we can keep doing deep dives like this is because of a small group of listeners who support the show over at buy me a coffee dot com slash fexingo. Lucas: It's not a big ask. Just that if these conversations have sparked something you've actually used in your own work, chipping in a few dollars a month helps us stay ad-free and independent. Luna: Yeah, and we're grateful for every single person who does. It keeps the podcast running without any sponsored interruptions. Lucas: So back to On Running's strategy — I think the most underrated part is the follow-up after someone buys via a restock alert. They don't just stop there. They add that customer to a 'limited edition buyer' segment and send them previews of future drops. Luna: Ah, so the restock alert is just the entry point into a VIP treatment. That builds exclusivity and makes the repeat buyer feel special. Lucas: Exactly. They get early access to the next limited drop, which reinforces the cycle. The data shows that customers in that segment have a repeat purchase rate of 65 percent within six months. Luna: That's impressive. But is there a downside? Could early access dilute the excitement if too many people get it? Lucas: It's a balancing act. On Running keeps the preview window short — 24 hours — and it's by invitation only. That maintains the scarcity while rewarding loyalty. Luna: So the key takeaway: restock alerts, when done right, are a retention tool, not just a sales recovery tactic. And they work best when combined with segmentation, speed, and a follow-up VIP experience. Lucas: Exactly. For brands that rely on limited drops, this is a way to turn scarcity into a long-term relationship. The question is how many brands actually invest in the infrastructure to do it well. Luna: Hopefully more after hearing this episode. Thanks, Lucas. Lucas: Thanks, Luna. And thanks to our listeners for sticking around. Until next time.