How Garth Watrous Retains Customers with Customer Experience at American Hat Makers | Retention Nation Podcast

Join us on this episode of Retention Nation as we sit down with Garth Watrous, the visionary co-owner of American Hat Makers. Garth, who grew up immersed in the world of artisan hat-making alongside his father, has played a pivotal role in doubling the company’s growth—twice! With a business degree from San Diego State University and a relentless drive to become the world’s top hat company, Garth’s journey is nothing short of inspiring.

In this episode, we dive into how American Hat Makers has successfully transformed pandemic-era one-time buyers into loyal customers over the past four years. Garth shares insights on leveraging personal experiences to build meaningful customer relationships at scale, and how his company’s commitment to handcrafted, American-made hats shapes its retention strategies

Some of the key takeaways include:

• Quality Over Size: Garth emphasizes that being the biggest isn’t necessarily the best. True business success is defined by profitability and delivering value to shareholders, not just top-line growth.
• Shift from Vanity Metrics: He notes that the romanticism of high top-line growth in e-commerce is fading. Instead, focusing on genuine profitability and sustainable business practices is crucial.
• Retention Focus: Garth highlights the importance of retention in achieving long-term success. It’s not enough to acquire customers; the goal is to retain them and encourage repeat purchases.
• Challenges of Post-COVID E-Commerce: The pandemic altered e-commerce dynamics, pushing brands to adapt quickly. Garth’s company leveraged e-commerce growth during this time but faced challenges in maintaining profitability.
• Customer Acquisition Costs: Managing customer acquisition costs (CAC) is crucial. Garth discusses the need to balance initial acquisition expenses with the potential for future profit, especially in premium apparel.
• The Value of Customer Feedback: Listening to customer feedback is essential for improving business practices and ensuring customer satisfaction.
• Effective Use of Technology: Technology like SMS and email marketing tools are critical, but Garth stresses the importance of getting foundational elements right, like website functionality and customer data collection.
• Customer Experience Matters: Ensuring a seamless and easy purchasing experience is key. Garth recounts a real issue with missing phone numbers and how it impacted customer service and marketing efforts.
• Balancing Engagement: Finding the right cadence for customer communication is vital. Over-engaging customers can lead to burnout, while under-engaging may miss opportunities for retention.
• Accepting Customer Preferences: Garth advises that it’s okay for customers to unsubscribe or block communications if they’re not interested. The focus should be on nurturing the engaged audience rather than trying to hold onto those who aren’t receptive.

Discover how American Hat Makers engages customers in its mission to lead the hat-making industry, and learn about the impact of gender on retention rates. Garth also explores innovative and nostalgic tactics for e-commerce, and offers a glimpse into what’s next for American Hat Makers.

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