We recently hosted a webinar with Tommy Lamb, Teleflora’s Director of Loyalty and Retention. Tommy, who has previously held positions at Dermstore, Lucky Brand, and BCBG, walked us through the ways his team is leveraging customer data to drive sustainable growth. Check out the full video below.
Custora’s CEO, Corey Pierson, kicked off the webinar by discussing why customer-centric metrics such as customer lifetime value (CLV) are essential indicators of the health of retailers’ customer databases, and why customer retention is becoming more important than ever.
Tommy then shared four case studies—churn prevention, VIP programs, and two cases of advanced segmentation. In each, he used Custora’s predictive algorithms to select the best audiences at key moments in the customer lifecycle. He explained how he determined which opportunities to pursue, how he began testing offers and creatives, and how he used holdout groups to measure the success of each campaign.
Fill out the form below to get the recording.
Download the full book here.
The holidays are in full swing, with revenue up 6% from last year for the week beginning Black Friday (1). The average e-commerce business acquires almost a quarter of its new customers during the holiday season, and with new customers comes great responsibility…AKA the need for a solid retention net. Research from Bain has shown that increasing retention by 5% can increase profits by 125%. We expect that holiday shoppers are often worth less than non-holiday shoppers due to heavy promotions and gift-giving, and in fact research from RJ Metrics reveals that shoppers acquired during the holidays have a 13% lower lifetime value than the average customer.
What can we do to ensure holiday shoppers are not one and dones?
First impressions matter in any relationship. The first date. The first job interview. The first haircut at a salon. Marketers hope to leverage momentum from the first experience towards a second purchase. The one-to-two purchase conversion is the first step in what hopefully turns into a long-lasting, repeat-buying relationship.
The numbers back it up. Two-time buyers are 9 times more likely to repeat than first-time shoppers. Granted, there is some debate around this figure. How much of the 1x-to-2x conversion is ‘nature’ (acquiring great customers) vs ‘nurture’ (an effective welcome series). It’s nearly impossible to tell, but most marketers agree it’s a combination of both.
As a result, the welcome series has become a critical component to every retention marketing game plan. The welcome series — an aptly named (and relatively easy to set up) succession of automated emails that introduce a new customer to a brand— is a great start and a clear improvement to the alternative of doing nothing.
For the retail industry, the holiday season can be a blessing and a curse. Generally, the season is seen as critical for a business – upwards of 630 billion dollars are spent during the holidays, and the two month span we refer to as “the holiday season” brings in 43% of a retailer’s new customers for the year on average. However, with this onslaught of new customers comes a challenge: the Customer Lifetime Value (CLV) of shoppers acquired during the holidays is 15% lower than other times of the year.
With so many customers new to your brand and increased spend from existing customers, the holiday season is a crucial time to solidify relationships with your customers to turn them into repeat shoppers.
In our recent webinar, we discussed three advanced segmentation techniques you can use to improve your messaging this holiday season. You can watch the full video below.