We hosted a great webinar yesterday with our guest Ron Offir, CEO of Offir Consulting. The topic – Driving Omnichannel Growth with a Digital Flagship. Below is a summary of the presentation and an audio file of the Q&A.
Ron is the CEO and founder of Offir Consulting and has over 20 years of experience leading marketing and e-commerce initiatives at Michael Kors, The Jones Group, Coach, Gap Inc, and Deloitte Consulting. Ron chatted with Kevin Young, CMO of Custora, who has held senior marketing positions at Monetate, SAP North America, and Microsoft.
Top line growth is at the top of every CEO’s agenda, and it’s no surprise. In the digital age, consumers are always shopping around. New technologies and greater choice are changing how they are thinking and acting.
Couple this with the fact that the cost to acquire new customers continues to grow as the expected return from each new customer shrinks. An alarming number of customers are drifting away after their first purchase. We call this the shark graph, and it represents a scary situation for the retail industry.
As part of our Webinarch Madness series, we hosted a webinar with Professor Eric Schwartz of University of Michigan’s Ross School of Business. His research focus is on predicting customer behavior, understanding its drivers, and examining how companies can actively manage their customer relationships with marketing.
In the webinar, Professor Schwartz shares how the latest research from academia is affecting customer lifetime value and multivariate testing in the retail context. This is a must-watch for those interested in the future of customer marketing.
Fill out the form below to get the recording.
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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.