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Mike Arsenault Co-founder, Rejoiner
mike@rejoiner.com
P R E S E N T E D B Y
H O S T E D B Y
Lauren Smith Content Marketing Manager, Litmus lauren@litmus.com
+
Presentation (30-40 Minutes)
• Customer Lifecycle Basics
• Scoring Your Customers
• Real World Examples
• Measuring Success
Q&A (10-15 Minutes)
Logistics
#DataDrivenEmail
The eCommerce Customer Lifecycle
New customersentering base
Existing/active customers Customersdeclining inshopping activity
Lapsedcustomers
From: Gary Hawkins, Customer Intelligence
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Use customer data to predict the most important and profitable moments to deliver marketing.
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“Customers are always in the process of changing their behavior - either accelerating their relationship
with a company or terminating it.”
Jim Novo, Drilling Down
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Opportunity Created by Friction Changes
New customers entering base Existing/active customers Declining in shopping activity Lapsed customers
From: Gary Hawkins, Customer Intelligence Quote From: Jim Novo, Drilling Down
Rising Potential Value (falling Falling Potential Value (rising
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“Friction is really about the likelihood a customer will continue to do business with you.”
20% of Your Customers Drive 80% of Profits
Importance of CLM for eCommerce
The Power-Law Distribution
Small Number of Hyper Performers
Broad Range of“Average Performers”
Small Number of“Lower Performers”
Performance
Total Number of People
Josh Bersin, The Myth Of The Bell Curve: Look For The Hyper-Performers
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Recency: Recent purchasers are more likely buy again.
Frequency: More frequent purchasers are more likely buy again than those who have purchased just once.
Monetary: Customers who have spent the most in total are more likely to buy again.
RFM Scoring
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RFM Customer Scoring Example
More Resources:Peter S. Fader and Bruce G.S. Hardie, Creating an RFM Summary Using Excelhttp://www.brucehardie.com/notes/022/RFM_summary_in_Excel.pdf Jim Novo, Drilling Down http://www.jimnovo.com
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Identify High Opportunity Customers
Potential Value
Cur
rent
Val
ueLow Potential Value, High Current Value Grow These Consumers
Low Potential Value, Low Current Value Should You Spend Money Here?
High Potential Value, High Current Value Keep These Consumers
High Potential Value, Low Current Value Grow These Customers
Jim Novo, Drilling Down
#DataDrivenEmail
Four Campaigns to Start With
Cart Abandonment
First-PurchaseWelcome Series VIP Customers
Win Back
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Identify High Opportunity Customers
Potential Value
Cur
rent
Val
ue
Low Potential Value, High Current Value
Low Potential Value, Low Current Value
High Potential Value, High Current Value
High Potential Value, Low Current Value
Jim Novo, Drilling Down
#DataDrivenEmail
First-Purchase Welcome Series
Cart Abandonment
VIP CustomersWin Back
Cart Abandonment
Why • High Intent, High (R) • Recover Lost Revenue • Uncover Friction Points • Qualitative Feedback
How • Customer Service Opportunity • Assume Mobile Consumption • Try Humor
Goal: Convert high purchase intent customers and findout why they abandoned (then fix it)
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Be brief and tell them why you’re emailing them
Give your customers way to contact you in casethey have questions or need help purchasing
Enable customers to complete their purchaseregardless of where they receive your emailsby regenerating their cart on click.
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A bit of urgency doesn’t hurt
Paws, and don’t forget to use a sense of humor to engage customers
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Why • Drive 2nd Purchase • Ask for Reviews • Thank Customers • Tell Your Story
First Purchase Welcome Series
Goal: Turn one-time purchasers into repeat purchasers
How • Relational - Emphasize
what makes you different • Make customers feel
confident about buying decision
• Social - Engage on other channels
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Say thank you
Show other products to encourage second purchase
Connect via social channels
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Tell your story
Promote social channels
Emphasize exclusive content shared via social
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VIP Customers
Why • Upper right-hand corner • Take care of VIPs • Say thank you, genuine
appreciation
How • Top 20% • Rewards, service, appreciation acknowledgement • Doesn’t have to be a discount • Note from CEO
Goal: Drive loyalty and make your best customers feel appreciated
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Win Back
Why • Engagement is
decelerating
• Re-engage customers prior to defection
How • Calculate latency to determine tripwire • Break out the offer
Goal: Nurture customers showing abnormal periods of purchase inactivity
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Measure Latency
Distribution of Customer Latency (1st-2nd Purchase)
Num
ber o
f 2nd
Tra
nsac
tions
Days
0 100 200 300 400 500
0
100
2
00
300
4
00
500
Day 50
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Conclusion
You don’t need big data. Just a spreadsheet!
RFM and Latency calculations get you to 80%
Focus on low/high friction lifecycle stages first
Gut check using hold out groups
Engagement ≠ Profitability
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