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.

150702_triple-venn-blog

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.

150702_aov-blog

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.

150702_modular-blog

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.

 

Webinar: E-commerce email + Lifecycle marketing

150421_nar-control

Leading e-commerce retailers are growing 2.5 times faster than average online stores. Email is a big contributor to that stratospheric growth, driving close to a fifth of online orders throughout the year (substantially more on the biggest US online shopping days of the year — Black Friday & Cyber Monday, full report here).

Watch the webinar replay (and download the slides) below for a rundown of how retailers like Backcountry.com, Crocs, Everlane, Sole Society, and J.Crew get the most from their email marketing. Continue reading

Holiday E-Commerce Recap + 2015 Trends

Holiday 2014 - the big trends

It’s official.

Holiday 2014 was the biggest retail season on record, with revenue up 15.6% versus 2013.

Our upcoming holiday recap report is chock full of holiday insights based on data analysis from over 100 retailers, 100 million anonymized shoppers, and $40B in e-commerce revenue. We’ll share them in a webinar we’re hosting in tandem with BounceExchange:

Webinar: 2014 Holiday E-commerce Recap + Tips for 2015 from Marketing Leaders

You’ll hear the highlights of the 2014 holiday season, and get planning insights for 2015 from leading retailers including Ann Taylor, BaubleBar, and NastyGal.

Topics include:

  • The biggest holiday shopping days (hint: They’re not just Black Friday & Cyber Monday) (learn more)
  • Mobile e-commerce and what it means for marketers (learn more)
  • Which marketing channels drove e-commerce transactions this holiday (learn more)
  • The most important e-commerce marketing trends for 2015 (learn more)

Hope to see you Wednesday, January 28th (1-2pm EST) or Thursday, January 29th (3-4pm EST). Learn more and register to the webinar here.

Powering better email with predictive analytics

Predictive analytics allows quick, reliable conclusions about how a person will behave by inferring how similar they are to other people: Daya is a top customer who shops business chic shoes and loves free shipping. Olivia just signed up and has similar characteristics to Daya (came from Facebook, browses footwear, from the Midwest) — better send Olivia an email about shoes that come with free shipping.

Throughout a customer’s lifecycle, predictive analytics helps retailers better understand who their customers are and what they like, and then tailor messages to better suit those tastes — from activating email subscribers (sometimes called “members”) into customers, to growing relationships through repeat purchases and interactions, until the point of retention, when it looks like that customer might stop shopping with that store, and beyond.

Recently, we co-hosted a webinar (with Percolate) and shared stories of how predictive analytics is helping e-commerce leaders (like Guess, Nasty Gal, and Sole Society) transform their email marketing.

We covered case studies from each phase of the customer lifecycle:
Activation, Growth, and Retention
Continue reading

Sole Society + Custora: 3.5% revenue lift in two weeks using conversion predictions

 

The visibility that we get from Custora in terms of what we should send to whom and when, helps us understand exactly which call to action is most effective for retaining different customer segments.
-Andrea Wasserman, CEO of Sole Society

Continue reading