Data-Driven Lifecycle Email for eCommerce
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This document discusses the importance of customer lifecycle marketing (CLM) for eCommerce, emphasizing the need to analyze customer data to optimize marketing strategies. Key strategies include scoring customers based on Recency, Frequency, and Monetary (RFM) values, and implementing campaigns such as cart abandonment, first-purchase welcome series, and win-back efforts. The document highlights maximizing profitability through customer engagement and nurturing high-value customers while managing friction points in the customer journey.
Data-Driven Lifecycle Email for eCommerce
- 1. Data-Driven Lifecycle Email for eCommerce + B R O U G H T T O Y O U B Y
- 2. Mike Arsenault Co-founder, Rejoiner mike@rejoiner.com 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 lauren@litmus.com +
- 3. Presentation (30-40 Minutes) • Customer Lifecycle Basics • Scoring Your Customers • Real World Examples • Measuring Success Q&A (10-15 Minutes) Logistics #DataDrivenEmail
- 5. The eCommerce Customer Lifecycle New customers entering base Existing/active customers Customers declining in shopping activity Lapsed customers From: Gary Hawkins, Customer Intelligence #DataDrivenEmail
- 6. Use customer data to predict the most important and profitable moments to deliver marketing. #DataDrivenEmail
- 7. “Customers are always in the process of changing their behavior - either accelerating their relationship with a company or terminating it.” Jim Novo, Drilling Down #DataDrivenEmail
- 8. 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 #DataDrivenEmail “Friction is really about the likelihood a customer will continue to do business with you.”
- 9. 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 #DataDrivenEmail
- 10. Importance of CLM for eCommerce Top 1% Spend 30x More Than Average #DataDrivenEmail
- 11. Importance of CLM for eCommerce 1x Buyer < CAC #DataDrivenEmail
- 12. Measuring Your Customer Lifecycle #DataDrivenEmail
- 14. 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 #DataDrivenEmail
- 15. RFM Customer Scoring Example More Resources: Peter S. Fader and Bruce G.S. Hardie, Creating an RFM Summary Using Excel http://www.brucehardie.com/notes/022/RFM_summary_in_Excel.pdf Jim Novo, Drilling Down http://www.jimnovo.com #DataDrivenEmail
- 16. Identify High Opportunity Customers Potential Value CurrentValue Low 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 #DataDrivenEmail
- 17. Four Campaigns to Start With Cart Abandonment First-Purchase Welcome Series VIP Customers Win Back #DataDrivenEmail
- 18. Identify High Opportunity Customers Potential Value CurrentValue 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 #DataDrivenEmail First-Purchase Welcome Series Cart Abandonment VIP CustomersWin Back
- 19. 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 find out why they abandoned (then fix it) #DataDrivenEmail
- 20. Be brief and tell them why you’re emailing them Give your customers way to contact you in case they have questions or need help purchasing Enable customers to complete their purchase regardless of where they receive your emails by regenerating their cart on click. #DataDrivenEmail
- 21. A bit of urgency doesn’t hurt Paws, and don’t forget to use a sense of humor to engage customers #DataDrivenEmail
- 23. 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 #DataDrivenEmail
- 24. Say thank you Show other products to encourage second purchase Connect via social channels #DataDrivenEmail
- 25. Tell your story Promote social channels Emphasize exclusive content shared via social #DataDrivenEmail
- 26. 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 #DataDrivenEmail
- 27. Feels exclusive And reward their loyalty, too #DataDrivenEmail
- 28. Signed by CEO Elegant and simple. Reminiscent of a very personal note to customer #DataDrivenEmail
- 29. 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 #DataDrivenEmail
- 30. Measure Latency Distribution of Customer Latency (1st-2nd Purchase) Numberof2ndTransactions Days 0 100 200 300 400 500 0100200300400500 Day 50 #DataDrivenEmail
- 31. Deliver value outside of reminding Break out your best offer #DataDrivenEmail
- 32. Get your customers back in stores and online #DataDrivenEmail
- 35. 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 #DataDrivenEmail
- 37. Keep your best customers Done-with-you campaigns & lifecycle email software to send cart abandonment, welcome series, win back and more. rejoiner.com
- 38. Send your triggered emails with confidence Preview your email in 40+ email clients and apps, and verify that links, images, and tracking are working as intended. Free 14 day trial of Litmus. No credit card required. Try Litmus free