SWOT Analysis (Cheryl & Co. ’ s Direct Marketing Efforts)
Cheryl & Co. has access to 1-800-Flowrs.com Database (30M subscribers/customers)
Cheryl & Co. has constant database analysis to determine what products are best suited for their customers.
Cheryl 7 Co. has a unified front for their entire multichannel marketing campaigns.
TAKEAWAY: Cheryl & Co. practices good database analysis to provide the best products and services tailored fit to their buyers ’ need.
Decrease of customer list due to poor data hygiene.
Since the Gourmet and Gift category of 1-800-Flowers.com accounts for 36% of the entire business, the level of priority for dispatching their sales tool (emails and direct mails) are geared towards their floral business making Cheryl & Co. a lesser priority.
TAKEAWAY: Cheryl & Co. is not the biggest contributor to 1-800-Flowers.com ’ s business making it a lesser priority for promotions.
Customer acquisition through 1-800-flowers.com ’ s database.
Increase the revenue share of the Gourmet and Gift Services of 1-800-Flowers.com
Social E-Commerce as a potential channel for customer acquisition.
TAKEAWAY: There is an opportunity to become the biggest revenue contributor to the entire 1-800-flowers.com business through acquiring the existing customer list of the other subsidiaries.
Decrease of active customers/subscribers due to non-relevancy of the things they receive via direct mail or email.
Social E-commerce is prone to negative PR since social networking has the ability to damage a brand ’ s image at a faster rate through its viral capabilities.
TAKEAWAY: Since Cheryl & Co. ’ s list of customers are also being shared by other companies, there is a threat of losing active customers because they will also receive promotions from other brands they did not subscribe to and might end up being marked as SPAM and cancel their subscriptions.
Cheryl & Co. will perform data analysis on 1-800-Flowers.com ’ s database and extract a subscriber list based on purchasing behavior and execute a cross promotion campaign to penetrate and encourage product trials using E-mail as the medium.
Perform mass communication by sending everyone in the 1-800-Flowers.com list an email of Cheryl & Co. ’ s online catalog and offerings.
Since Cheryl & Co. is known to have a solid data analysis program integrated in their business model, the best way to achieve the objective of expanding the customer list would be alternative action #1. This will not only target the right audience in the 1-800-Flowers.com database but also provide promotions that will encourage trial and eventually convert them into regular customers.
Action Plan Activity Time Frame Assignees Feedback Mechanism Data Extraction 1 day 1-800-Flowers Database Manager Provide excel document listing all potential customers with complete information, mailing address and items they purchased through the 1-800-flowers.com website Data Analysis 1 Week Cheryl&Co Business Analyst Provide a list of potential customers that will fit the Cheryl&Co. target market profile. E-mail Development 3 days Cheryl&Co. E-marketing department Developed e-mail template, content and trial promo offer. Cross Promotion mechanics 2 days Cheryl&Co. Marketing deparment Create promo that will induce trial (i.e. Free Shipping, 20% off, BOGO-Buy One Get One) E-mail Dispatch 30 days (1M subscriber per day) 1-800-Flowers.com Email Dispatch Team Email Dispatch Report (success rate and total failed messages) E-mail Analysis 2 days Cheryl&Co. e-mail marketing team Analyzed open rates, bounce rate, unsubscribe rate and SPAM rate. Data Analysis 3 days Cheryl&Co. Marketing Department Analyzed how many-purchased coming from the e-mail list and converted into a buying customer.