Fast growing retailers Calendars.com and Dermstore have experienced a 10x lift in ROAS and 2% increase in overall sales with Custora.
Friday, June 9, 2017, 8:03 EDT
Chicago – At CRMC today, Custora unveiled Segmentation Studio, the most robust and user friendly customer segmentation tool on the market today. Segmentation Studio gives marketers point and click access to predictive customer segments that significantly improve the ROI of email, direct mail, Facebook and display campaigns.
Many retailers understand that opportunities for growth are hidden in their customer data, but they encounter a number of challenges when attempting to make use of their data: customer data is fragmented across various systems, they lack the data science capabilities to uncover insights at scale, or, to the extent insights exist, marketers face friction when attempting to leverage insights within daily marketing campaigns. Custora’s advanced Customer Segmentation Platform addresses these challenges and is helping 6 of the top 20 retailers in the US leverage their customer data to drive growth.
Custora’s platform is comprised of two parts: the “Customer Data Cloud” and the newly released “Segmentation Studio.” The Customer Data Cloud powers the platform ‘under the hood.’ In the Customer Data Cloud, Custora aggregates data from a variety of transactional, engagement, and web analytics sources to produce a single, unique profile for each consumer. The platform then leverages a variety of predictive, machine learning models to anticipate customer behavior. Each customer profile is enriched with attributes including product and brand affinities, propensity to purchase on discount, expected lifetime spend, and likelihood of churn.
Segmentation Studio is a web interface that sits on top of the Customer Data Cloud. The Studio provides Marketers with point-and-click access to activate those insights within daily marketing campaigns. Marketers can discover hidden opportunities, create intelligent customer segments, and automatically push those segments into marketing execution tools throughout their ‘marketing stack.’ Segmentation Studio provides “click click done” functionality to help marketers respond to questions such as, “Who should receive our new arrival campaign?” or “Which customers are at risk for churn?” Segmentation Studio offers a natural language query interface, out-of-the-box access to historical and predictive segments, integrations to tools throughout the marketing stack, and automated cross-channel measurement capabilities. Marketers are leveraging Segmentation Studio to drive significant lift in email, direct mail, social, and display campaigns.
“Our vision is to unlock the power of customer insights that have traditionally been fragmented across marketing tools and data siloes,” said Custora CEO Corey Pierson. “Giving marketers the ability to build, publish, and take action on CRM audiences is the first step in creating messages that resonate. And improved relevance translates into improved business results.”
Better Audiences Mean Better Results
Calendars.com, the leading global retailer of calendars, uses Custora to optimize around the unique dynamics of their business. Faced with steep seasonality and an assortment of niche merchandise including toys and games, Senior Director of Digital Marketing Marcia Oakes knew that she needed an advanced analytics partner to help her drive digital growth.
“We needed to find ways to make our business more stable and evergreen by increasing sales of non-calendar products,” says Oakes. “But when we tried to promote those categories, we found that we were fatiguing our email list and not seeing a compelling return in paid marketing channels.”
Using Custora, the retailer was able to uncover hidden patterns in the retailer’s customer data. Harnessing the power of machine learning to identify predictive affinity segments — “lookalike” groups within the retailer’s own dataset — Calendars.com was able to create relevant audiences for niche product categories, driving return on ad spend (ROAS) improvements of up to 10x on Facebook paid advertising and maximizing demand from the customer file without exhausting customers.
“Custora helped us reach exactly the right customers with a message that was perfectly tailored to their interests and needs — upleveling our entire marketing program,” says Oakes.
Dermstore, a Target company, is a fast-growing e-commerce retailer of beauty and cosmetic products. President Cathy Beaupain is constantly seeking solutions to help the retailer leverage automation and personalization.
“Reaching the customer at the right point in her journey with a meaningful message is essential to driving engagement and, ultimately, conversion,” says Beaupain.
Dermstore leverages Custora to power outreach to customers at critical points in the customer lifecycle: for example, when a loyal long-term customer begins to show signs of fading away. By using data science rather than business rules to know when to intervene in a customer relationship, Dermstore makes sure that they are speaking to their guests at the time that is most relevant for them. The results have been transformative: an overall revenue lift of roughly 2% on the entire business.
“Custora helps us power the right message to the right customer – at scale,” says Beaupain. “The next frontier for us is integrating these rich customer insights into massive personalization of day-to-day communication, rather than just key moments in the customer journey.” Her team is currently partnering with Custora on the integration of individual user-level predictions into the content of daily emails.
Oakes and Beaupain are among the retail leaders whose thought leadership has contributed to Custora’s newest product release. “Custora has changed the way we think about our customers and our business,” says Oakes. “Segmentation Studio makes it faster and easier than ever to use customer insights to drive growth.”
Custora is an advanced customer segmentation platform powered by predictive analytics for the retail industry. We help marketers improve the ROI of their email, display, direct mail, and Facebook campaigns. Custora surfaces smart (and predictive) customer segments, integrates with marketing channel technologies to execute more effective acquisition and retention campaigns, and measures the impact on customer lifetime value. Over 100 brands including Lucky Brand, Ann Inc., Tiffany & Co., Crocs, and Teleflora use Custora to improve new customer conversions, grow revenue from existing customers, and improve team efficiency. Six of the top 20 largest North American retailers use Custora’s Advanced Segmentation Platform.