How leading retailers implement customer segmentation [webinar replay]

Customer segmentation is one of the most powerful tools for retailers. But there are significant challenges marketers need to overcome before they can feel confident they’ve built out a solid segmentation program. The marketing teams that we work with often describe a balance they must strike on three fronts, between customer demands, creative bandwidth, and merchandise needs.

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Creative teams are often stretched thin, and finding the resources to write and design the additional, high-quality emails needed to ramp up customer segmentation can be a struggle. Merchandise teams often make their own demands on marketers’ campaigns, while each customer has feelings of their own as to what they want to buy.

We’ve heard this challenge described as threading the needle, and recently hosted a webinar where our co-founder Corey Pierson talked through some of the ways leading retailers can pull off that marketing feat.

 

Customer demands
In theory, what the customer wants is the most powerful motivating force for marketers. As a marketer you know that some customers are interested in certain product categories and others are interested in other product categories and you want to send each segment the most relevant content. One common (and very effective) segmentation method is sorting by predicted lifetime value (or customer spend). Understanding who your best, better, and top 1% (platinum) customers are will help inform specific product recommendations.

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See more on how leading teams are using Average Order Value (AOV) and predictive persona analysis to segment customers by their wants and personalize emails accordingly.

 

Creative
However, customer needs are not the only factor that needs to be taken into account. Having enough great creative is often a big challenge when teams look to increase personalization. Where before they were sending one email, teams are tasked with sending two or more versions to cater to specific customer demands.

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See how Backcountry uses modular content to decrease the creative lift required for dynamic email segmentation.

 

Merchandise needs
Finally there’s the merchandising needs. Sometimes, for a brand that’s selling their own goods it’s an internal merch team saying “we really need to push a certain category right now.” For other companies that sell a variety of brands it’s contingent upon what’s on clearance or perhaps there is a co-op deal in place with one of those external brands.

Learn how one retailer was able to use predictive product affinity to uncover customers in their database who are likely to want a particular item that needed to be pushed by marketing.

 

Watch the replay and get the deck below
Corey goes into greater detail on the relative importance of email vs. other channels, how good a/b testing fundamentals are the backbone of great segmentation, along with an in-depth question and answer session. You will also hear from Borderfree’s Sr. Director of Client Strategy and Operations, Mike Griffin who discusses how retailers sell in multiple international markets can use segmentation to great effect.

 

The fastest-growing fashion retailers: Diving into the report [Webinar Invitation]

We’re excited to host a webinar together with Tim Grace, VP eCommerce at The Tie Bar. Tim will share advice, insights, and stories from the front lines about building and growing a successful e-commerce brand.

In a live conversation with yours truly, Tim will discuss real-life e-commerce case studies, and retailer benchmarks from Custora’s latest report: The Custora E-Commerce Pulse High-Growth Fashion Index.

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What I learned from analyzing 20+ high-growth online fashion brands

One of the things I like the most about my job at Custora is building our research platform, The Custora E-Commerce Pulse. I get to work with dozens of e-commerce retailers, geek out over their data, and interview the best & brightest minds in e-commerce and digital marketing (by the way, if this sounds like your idea of fun, we’re hiring).

Custora E-Commerce Pulse Fashion-Growth Fashion Index
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The Fastest-Growing Online Fashion Retailers & What Sets Them Apart [New Report]

Introducing The Custora E-Commerce Pulse High-Growth Fashion Index: A new research report analyzing 20+ fashion and lifestyle retailers that grew their online revenue and transactions the most in 2014.
 

We’re trying to transition into a type of marketing that produces customers who are going to be more loyal, instead of optimizing for the initial sale. — Tim Grace, VP eCommerce, The Tie Bar

 

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US e-commerce is growing fast, with revenue up 14.9% in 2014 according to the The Custora E-Commerce Pulse — a free online dashboard tracking online transactions from over 100 US retailers, 500 million shoppers, and over $80 billion in transaction revenue.

However, this average growth figure masks that some online retailers are growing much, much faster. For this report, we analyzed some of the fastest-growing online fashion, accessories, and lifestyle retailers based in North America. Our goal was to understand what makes these high performance retailers different from everyone else, resulting in a growth rate that is almost double the overall average.

 

We have to create an experience where customers want to tell us more about themselves. — John Tucker, VP of Member Experience, Trunk Club

 

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Lessons from Andrea Wasserman, GM eCommerce at Hudson’s Bay and Lord & Taylor

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Andrea Wasserman, SVP Digital for Hudson’s Bay and Lord & Taylor, and former CEO of Sole Society, recently spoke at a dinner Custora hosted for the e-commerce and marketing community in New York City. The dinner was part of our efforts to facilitate a community of retail marketers, and promote learning and sharing across brands. We were excited to host marketers and e-commerce leaders from Tiffany’s, Bonobos, Chanel, Blue Fly, Steve Madden, Amazon and others for an insightful (and delicious) evening at Upland restaurant in Flatiron.

At dinner, Andrea discussed her experience as leader of an emerging fashion brand along with her experiences at her current senior role with one of the world’s most prominent retailers.

You can watch the short teaser video of her discussion with Custora Co-Founder Corey Pierson below (watch the full presentation at the end of this post).


Watch the rest of the interview below. 

In the full video interview, Andrea and Corey cover a range of topics, including:

  • The role of data in e-commerce marketing strategy and execution
  • The interplay between data and qualitative insights
  • The key metrics for appealing to investors in a small company
  • The challenges of serving the omnichannel, omni-device shopper
  • How to approach hiring the e-commerce leaders of tomorrow

Fill in your details to watch the full interview.