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Digital Marketing to a mature audience

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Cotton Traders wants to share some of the values and strategies used in their Digital Marketing approach

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Digital Marketing to a mature audience

  1. 1. Marketing to a Mature Audience Hannah McKie / Cotton Traders @HannahMckie1
  2. 2. BRIGHTON SEO | SEPTEMBER 2019 • Data • Strategies • Digital Marketing Channels • eCRM / Segmentation Agenda
  3. 3. BRIGHTON SEO | SEPTEMBER 2019 Omni-channel British clothing retailer Customer audience: 50+ years Classic & digital customers Order frequency: 3-9 months 68% Female, 32% Male
  4. 4. BRIGHTON SEO | SEPTEMBER 2019 Drive customer acquisition and retention from bullseye 50-60 year old customers to future-proof Cotton Traders digital landscape given adverse market conditions and traditional media consumption. Challenge accepted! The Challenge
  5. 5. BRIGHTON SEO | SEPTEMBER 2019 Background Historically, new customer recruitment: 1) Off The Page (OTP) 2) Digital 3) Inserts This has recently changed... 1) Digital The average age of a digital customer is 10 years younger than our traditional marketing channels Let’s review Lifetime Value Profitability
  6. 6. BRIGHTON SEO | SEPTEMBER 2019 Lifetime Profitability Value Allows us to evaluate the profitability of our customers to determine any gaps in our Audience Strategy. Average UK life expectancy is 81 years - deducting their time to profit, lifetime profitability: ● Digital: 24 years ● OTP: 10 years ● Inserts: 7 years
  7. 7. BRIGHTON SEO | SEPTEMBER 2019 Payback Model As well as LTV, we can also use a Payback Model to derive the return our customers give us. What makes up a Payback Model? (other models are available) CPA, Subsequent Order Frequency, AOV, Spend, Short Term Value, Orders Per Year, Margin, Return rates, Variable Costs, Contribution, Marketing Cost Rate We can now have separate CPA/CPC targets per channel
  8. 8. BRIGHTON SEO | SEPTEMBER 2019 Data Summary There are multiple data sources Marketers can use to help determine the value of their customer database. ● New customer volume drivers ● Average order frequency ● Average age ● AOV (1st, 2nd etc. purchase) ● Returns rate ● Contact preference ● Time to second purchase ● Subsequent AOV ● Average order per customer
  9. 9. BRIGHTON SEO | SEPTEMBER 2019 Actionable Insight • Strategies • Digital Marketing Channels • eCRM • Attribution Now we have the data, what do we do with it?
  10. 10. BRIGHTON SEO | SEPTEMBER 2019 Strategies Stage of the life cycle – Start-up, Growth, Brand Propensity, Brand Reputation
  11. 11. BRIGHTON SEO | SEPTEMBER 2019 Strategies Retention/Acquisition/Reactivation? KPIs?- New Acquisition, Retention, Profit, Brand Awareness, Reactivation etc.
  12. 12. BRIGHTON SEO | SEPTEMBER 2019 Strategies - Acquisition Purpose: Acquire new customers (quality over quantity) KPIs: Roas, CPA, CPO Considerations: ● Brand awareness / brand perception ● Content/engagement ● What type of audience to pursue ● Which marketing channels to use ● Promotional offers
  13. 13. BRIGHTON SEO | SEPTEMBER 2019 Strategies – Nursery Retention Purpose: Nurture first time purchasers to loyalty segments KPIs: Roas, Order frequency, AOV Considerations: ● Profitability/value ● Loyalty schemes/promotional offers/exclusive ● Personalisation of marketing activity ● Contact rhythm/frequency ● Segmentation ● Increase purchase frequency
  14. 14. BRIGHTON SEO | SEPTEMBER 2019 Strategies - Retention Purpose: Retain and grow the loyalty of 2+ ordering customers KPIs: Roas, Order frequency, AOV Considerations: ● Profitability/value ● Loyalty schemes/promotional offers/exclusive ● Personalisation of marketing activity ● Contact rhythm/frequency ● Segmentation ● Increase purchase frequency
  15. 15. BRIGHTON SEO | SEPTEMBER 2019 Strategies - Reactivation Purpose: Capture lapsing customers, reactivate lapsed customers and turn them into re-engaged and repeat purchasers KPIs: Roas, CPO Considerations: ● Change brand perception. Brand reposition required? ● Personalised promotional offers ● Contact rhythm/frequency ● Best marketing channel to re-engage ● When to stop
  16. 16. BRIGHTON SEO | SEPTEMBER 2019 Digital Marketing Channels • Google/Bing – Paid ads / Organic listings • Social – Facebook, Instagram, Twitter • Display – GDN, YouTube • Affiliates • Email • SMS • OOH/DOOH/TV/Radio
  17. 17. BRIGHTON SEO | SEPTEMBER 2019 What to consider? • Frequency of ads • Time of day • Promotional activity • Segmentation • Demographics • Device • Preferred marketing channel
  18. 18. BRIGHTON SEO | SEPTEMBER 2019 Google Analytics • Location • Gender • Time of day • Frequency • Device • Behaviour
  19. 19. BRIGHTON SEO | SEPTEMBER 2019 Google Ads • Demographic/Location/Devices • RLSA Lists • Similar Audiences • Smart Lists • Custom Match • In Market Audiences • Smart Shopping
  20. 20. BRIGHTON SEO | SEPTEMBER 2019 Facebook • Demographic/Location/Device • Site Interaction • Targeted Interests • Email Lists • Look-a-likes • DPA Ads
  21. 21. BRIGHTON SEO | SEPTEMBER 2019 Display
  22. 22. BRIGHTON SEO | SEPTEMBER 2019 Display
  23. 23. BRIGHTON SEO | SEPTEMBER 2019 CRM Data Segmentation - VIPs, Middle of File, One-Time Nursery Purchaser, Sale (Peak Time) Shoppers, Lapsed, Dormant, Retail, Seasonal Shoppers Contact Rhythm - Taking both offline and online customer behaviour into consideration Promotion Personalisation - Based on customers’ shopping behaviours and upsell opportunities Content Personalisation - Category and product selects
  24. 24. BRIGHTON SEO | SEPTEMBER 2019 Summary There are fundamental elements to any audience strategy, which are transferable across all industries. Decide what data is important for you to analyse Use the data Avoid preconceptions Continually evolve your strategy - don’t stand still

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