Data-Driven Lifecycle Email for eCommerce

Data-Driven Lifecycle Email for eCommerce

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B R O U G H T T O Y O U B Y

Mike Arsenault Co-founder, Rejoiner

[email protected]

P R E S E N T E D B Y

H O S T E D B Y

Lauren Smith Content Marketing Manager, Litmus [email protected]

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Presentation (30-40 Minutes)

• Customer Lifecycle Basics

• Scoring Your Customers

• Real World Examples

• Measuring Success

Q&A (10-15 Minutes)

Logistics

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Customer Lifecycle Marketing

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The eCommerce Customer Lifecycle

New customersentering base

Existing/active customers Customersdeclining inshopping activity

Lapsedcustomers

From: Gary Hawkins, Customer Intelligence

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Use customer data to predict the most important and profitable moments to deliver marketing.

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“Customers are always in the process of changing their behavior - either accelerating their relationship

with a company or terminating it.”

Jim Novo, Drilling Down

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Opportunity Created by Friction Changes

New customers entering base Existing/active customers Declining in shopping activity Lapsed customers

From: Gary Hawkins, Customer Intelligence Quote From: Jim Novo, Drilling Down

Rising Potential Value (falling Falling Potential Value (rising

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“Friction is really about the likelihood a customer will continue to do business with you.”

20% of Your Customers Drive 80% of Profits

Importance of CLM for eCommerce

The Power-Law Distribution

Small Number of Hyper Performers

Broad Range of“Average Performers”

Small Number of“Lower Performers”

Performance

Total Number of People

Josh Bersin, The Myth Of The Bell Curve: Look For The Hyper-Performers

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Importance of CLM for eCommerce

Top 1% Spend 30x More Than Average

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Importance of CLM for eCommerce

1x Buyer < CAC

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Measuring Your Customer Lifecycle

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Recency

Frequency

Monetary

RFM Scoring

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Recency: Recent purchasers are more likely buy again.

Frequency: More frequent purchasers are more likely buy again than those who have purchased just once.

Monetary: Customers who have spent the most in total are more likely to buy again.

RFM Scoring

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RFM Customer Scoring Example

More Resources:Peter S. Fader and Bruce G.S. Hardie, Creating an RFM Summary Using Excelhttp://www.brucehardie.com/notes/022/RFM_summary_in_Excel.pdf Jim Novo, Drilling Down http://www.jimnovo.com

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Identify High Opportunity Customers

Potential Value

Cur

rent

Val

ueLow Potential Value, High Current Value Grow These Consumers

Low Potential Value, Low Current Value Should You Spend Money Here?

High Potential Value, High Current Value Keep These Consumers

High Potential Value, Low Current Value Grow These Customers

Jim Novo, Drilling Down

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Four Campaigns to Start With

Cart Abandonment

First-PurchaseWelcome Series VIP Customers

Win Back

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Identify High Opportunity Customers

Potential Value

Cur

rent

Val

ue

Low Potential Value, High Current Value

Low Potential Value, Low Current Value

High Potential Value, High Current Value

High Potential Value, Low Current Value

Jim Novo, Drilling Down

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First-Purchase Welcome Series

Cart Abandonment

VIP CustomersWin Back

Cart Abandonment

Why • High Intent, High (R) • Recover Lost Revenue • Uncover Friction Points • Qualitative Feedback

How • Customer Service Opportunity • Assume Mobile Consumption • Try Humor

Goal: Convert high purchase intent customers and findout why they abandoned (then fix it)

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Be brief and tell them why you’re emailing them

Give your customers way to contact you in casethey have questions or need help purchasing

Enable customers to complete their purchaseregardless of where they receive your emailsby regenerating their cart on click.

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A bit of urgency doesn’t hurt

Paws, and don’t forget to use a sense of humor to engage customers

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Customer service moment!

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Why • Drive 2nd Purchase • Ask for Reviews • Thank Customers • Tell Your Story

First Purchase Welcome Series

Goal: Turn one-time purchasers into repeat purchasers

How • Relational - Emphasize

what makes you different • Make customers feel

confident about buying decision

• Social - Engage on other channels

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Say thank you

Show other products to encourage second purchase

Connect via social channels

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Tell your story

Promote social channels

Emphasize exclusive content shared via social

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VIP Customers

Why • Upper right-hand corner • Take care of VIPs • Say thank you, genuine

appreciation

How • Top 20% • Rewards, service, appreciation acknowledgement • Doesn’t have to be a discount • Note from CEO

Goal: Drive loyalty and make your best customers feel appreciated

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Feels exclusive

And reward their loyalty, too

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Signed by CEO

Elegant and simple. Reminiscentof a very personal note to customer

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Win Back

Why • Engagement is

decelerating

• Re-engage customers prior to defection

How • Calculate latency to determine tripwire • Break out the offer

Goal: Nurture customers showing abnormal periods of purchase inactivity

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Measure Latency

Distribution of Customer Latency (1st-2nd Purchase)

Num

ber o

f 2nd

Tra

nsac

tions

Days

0 100 200 300 400 500

0

100

2

00

300

4

00

500

Day 50

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Deliver value outside of reminding

Break out your best offer

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Get your customers back in stores and online

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Discount Profitability

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Hold Out Tests

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Conclusion

You don’t need big data. Just a spreadsheet!

RFM and Latency calculations get you to 80%

Focus on low/high friction lifecycle stages first

Gut check using hold out groups

Engagement ≠ Profitability

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Thank You!@rejoinerapp

Keep your best customers

Done-with-you campaigns & lifecycle email software to send cart abandonment, welcome

series, win back and more.

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