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

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A Conversation with BaubleBar: Holiday E-commerce Marketing

Becca Freeman, Senior Manager, Digital Marketing at BaubleBar

 

We recently hosted a webinar with Becca Freeman, Senior Manager, Digital Marketing at BaubleBar. Launched in 2011, BaubleBar has quickly become an online destination for fashion jewelry, due largely in part to their unique sourcing capabilities. BaubleBar leverages real-time data to design products corresponding to current consumer trends.

Becca manages BaubleBar’s customer acquisition and email marketing programs. She talked to us about BaubleBar’s use of data and customer insights, as well as their upcoming holiday strategy. Here are a few highlights – you can get the entire recording below.

(We’re also hosting another webinar this week, discussing data-driven email marketing techniques from top retailers like Guess?, Nasty Gal, and Sole Society – register here).

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Nasty Gal + Custora: 11% revenue lift with a tailored approach to lifecycle marketing

 

“The marketing team was hungry for analytics and customer insight metrics. It was crucial to get insight into our performance, identify opportunities, test them, and eventually roll out successful initiatives at a greater scale.”

– Michael Fellner, Director of Retention Marketing, Nasty Gal

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The Best Month to Acquire New Customers is Not What You Think

It is unquestionable that the holiday season reigns the peaks of retail activity. In November and December, shoppers research and buy presents for family and friends, while taking advantage of numerous deals and sales, both online and in brick and mortar stores. Most retailers, consequently, assume the biggest spike in new customer acquisition occurs during this time frame, the two months of holidays galore — and they would be correct. But, with this rise in customer acquisition that spikes in the final months of the year, retailers ought to consider the lifetime value of these buyers — meaning the total spend of the customer over his or her entire relationship with the store. Inevitably, these customers tend to lean towards what the industry likes to call “one and done” buyers. In it for the discounted prices and out when deals are gone.
A spike in new customer acquisition that comes with poor retention and modest lifetime value? Time to rethink. Despite the jump in customers storming through your door in November and December, the best month to acquire new customers is, in fact, October.

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How Optimizing your SEM Customer Acquisition with CLV can Triple your Revenue

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Search Engine Marketing (SEM) is a bread and butter way to acquire new customers. You bid a certain amount per click, impression, or acquisition, and in return you get new visitors to your site. The key with SEM, as with any marketing channel, is to make sure that what you pay for new customers isn’t taking too big of a bite from your profits.

One of Custora’s customers, DataSauce, recently confronted this very issue. How could their client, “The Unusual Pea,” still profitably acquire customers despite low profit margins and thus a smaller budget for acquisition?

Read on for the summary of our recently published case study, and download the full case study below.

The Setup

DataSauce is an e-commerce and digital marketing consultancy based in Melbourne, Australia. They’re passionate about helping businesses reach the right customers with the right message at the right time. The Unusual Pea is a pseudonym for DataSauce’s client, who asked to remain anonymous. Despite the bit of mystery, we do know some key facts: They are an online food seller that services multiple locations in Australia, and are known for their insistence on food quality and the best ingredients.

The Challenge: Low margins. Low customer acquisition.

The Unusual Pea hired DataSauce to help them bring in more customers through advertising on Google AdWords. DataSauce’s first hurdle was The Unusual Pea’s low profit margins. Their average order is for a single diner who spends around $20, with The Unusual Pea’s profit amounting to $5, a slim margin. What this meant for DataSauce was that they could only justify a $5 or less Cost Per Acquisition (CPA) through Google AdWords to acquire new customers.

The Solution: Looking beyond the first order.

The lightbulb moment for DataSauce was when they turned to Custora to unlock the power of repeat purchasers and customer lifetime value (CLV). Armed with information about CLV, as well as the average repeat rate for their customers, DataSauce saw that instead of spending under $5 to acquire each customer, they could actually spend as much as $20.50 to profitably acquire a new customer.

The Results: Investing double and tripling revenue.

With Custora’s predictive CLV modeling, DataSauce felt confident setting their target at $10 CPA – double their initial investment. They assumed that spending twice as much on AdWords would double revenue. Happily for everyone, revenue tripled. In hindsight, that made sense: The higher CPA put them above the competition by ensuring that their ads were displayed more often, and allowed them to get better at identifying the keywords that brought in new orders.

According to Tzvi Balbin, Founder of DataSauce, “I can now say with conviction that the most important metric I measure is the CLV. For any direct marketer, it’s critical in guiding your data-driven decisions.”

To download the full case study, fill in the form: