ECommerce Customer Segmentation Strategies

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ECommerce Customer Segmentation Strategies: Win Back Old Customers, Cross/ Up Sell, Procrastinators, ......

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ECommerce Customer Segmentation Strategies

  1. 1. eCommerce CustomerSegmentation Strategies
  2. 2. Before we get started…• Having technical difficulties? – Use the Q&A dialog box to let us know – If we can’t help you, call Citrix at 888-259- 8414 for technical support – Or you can chat with a Citrix representative at www.citrixcs.com/chat• To submit questions during the webinar, use the Q&A chat box• Everyone will receive a link to a recording of Today’s Moderator: the presentation and a copy of the slide deck within 1 to 2 business days Sarah Zibanejadrad WhatCounts, Inc.• While you wait, download our new joint whitepaper on using segmentation to improve customer retention. – http://ar.gy/whatcountswhitepaper 2
  3. 3. Tweet! Tweet about this webinar using #WindsorCircle Follow: @WindsorCircle @McGinity @WhatCountshttp://ar.gy/whatcountswhitepaper 3
  4. 4. Today’s Speaker Brad McGinity VP, Sales & Marketing Windsor Circle, Inc. 4
  5. 5. Quick Wins Using Your eCommerce Data toDouble and Triple Email Marketing Revenue in 2012 http://ar.gy/whatcountswhitepaper
  6. 6. Special Offer for WhatCounts Users:Waive Magento “Download Fee.”$1,995 for Enterprise$749 for Community
  7. 7. AgendaWhy You Should CareQuick Wins 1. Win Back Old Customers 2. Cross/Up Sell 3. Procrastinators 4. Triggered Product Recommendations 5. Triggered Product Reviews 6. Best CustomersIdentifying Customer Segments with RFMAnalysis
  8. 8. Quick Win #1 Win Back Last Year’s (Holiday) Buyers Identify Last Year’s Holiday Buyers Identify 2011 holiday buyers. 1. Last Purchase ≥ 11.15.2011 2. Last Purchase ≤ 12.31.2011 Leverage “Win Back” Techniques to Engagehttp://ar.gy/whatcountswhitepaper
  9. 9. Holiday 11 Last Purchase ≥ 11.15.2011 LastEngage win back Purchase ≤techniques. 12.31.20111. “We miss you.”2. Increase Frequency, and suppress 2012 Buyers.
  10. 10. 11/15/2011 <= ‘PURCHASE’ <= 12/31/2011 http://ar.gy/whatcountswhitepaper
  11. 11. “Holiday 11” Gallery
  12. 12. “Holiday 11” Gallery
  13. 13. Quick Win #2 Cross / Up Sell This Year’s Hottest Items Based on Purchase History Identify Hot Items in Your Inventory • Identify hottest items • Intuition • Directive Identify Correlations with Other Products • Statistics • Identify correlations • Upgrades Cross / Up Sell Based • Accessories on Purchase Historyhttp://ar.gy/whatcountswhitepaper
  14. 14. Cross / Up Sell• Market basket analysis• Identify segments based on purchase history This Year’s Hottest Items • SKU • Title / Keyword • Category • Brand Purchase Correlations History Learn more about Market Basket Analysis at http://en.wikipedia.org/wiki/Market_basket_analysis
  15. 15. Category and Brand Historyhttp://ar.gy/whatcountswhitepaper
  16. 16. “Cross / Up Sell Gallery”
  17. 17. “Cross / Up Sell Gallery”
  18. 18. “Cross / Up Sell Gallery”
  19. 19. Quick Win #3 Help Procrastinators Buy Before A Big Event 1. Identify last minute Identify Procrastinators buyers 2. Identify rush shippers 3. Remind them of rush shipping fees Encourage Them to Buy Early and Savehttp://ar.gy/whatcountswhitepaper
  20. 20. Procrastinators The number of people who Paid for Rush shopped online the Wednesday Shipping before Christmas in 2010 jumped Since 23.5% compared with the 12.01.2011 Wednesday before Christmas in 2009.1 Purchase Purchase ≥ 12.18.2011 ≤ 12.25.20111. Wall Street Journal. Gift Shoppers Flocked to the Web. 12.24.2010. Ann Zimmerman.
  21. 21. http://ar.gy/whatcountswhitepaper
  22. 22. “Procrastinators Gallery”
  23. 23. “Procrastinators Gallery”
  24. 24. Quick Win #4 Trigger Product Recommendations Identify Product Recommendations • Identify specific product recommendations • Update purchase data nightly • Trigger recommendations Use Automation to based on purchases Recommend Additional Itemshttp://ar.gy/whatcountswhitepaper
  25. 25. Simply Use Custom Fields
  26. 26. To Drive Dynamic Content
  27. 27. To Drive Dynamic Content
  28. 28. “Triggered Product Recs”
  29. 29. “Triggered Product Recs”
  30. 30. Quick Win #5 Trigger Product Review Requests Identify Buyers ‘X’ Days After Purchase • Give enough time • Consider an incentive • Include Picture and Link Use Automation to Request a Reviewhttp://ar.gy/whatcountswhitepaper
  31. 31. Triggered Email 14 Days After Purchasehttp://ar.gy/whatcountswhitepaper
  32. 32. “Triggered Product Reviews”
  33. 33. “Triggered Product Reviews”
  34. 34. “Triggered Product Reviews”
  35. 35. Quick Win #6 Get Your Best Customers to Spend Their Cash With You Engage through Identify Best Customers Exclusivityhttp://ar.gy/whatcountswhitepaper
  36. 36. Meet RFM Analysis. Recency – Number of days or months since last purchase Frequency – Number of purchases made Monetary Value – Amount spent by a customerhttp://ar.gy/whatcountswhitepaper
  37. 37. First, Sort and Split “Recency” Quartile 1 (R=1) Quartile 2 (R=2) Quartile 3 (R=3) Quartile 4 (R=4)http://ar.gy/whatcountswhitepaper
  38. 38. Continue with “Frequency” and “Monetary Value” Quartile 1 (F=1) Quartile 1 (M=1)Quartile 2 (F=2) Quartile 2 (M=2) Quartile 3 (F=3) Quartile 3 (M=3)Quartile 4 (F=4) Quartile 4 (M=4)
  39. 39. RFM Segments – Best CustomerQuartile 1 (R=1) Quartile 1 (F=1) Quartile 1 (M=1)Quartile 2 (R=2) Quartile 2 (F=2) Quartile 2 (M=2)Quartile 3 (R=3) Quartile 3 (F=3) Quartile 3 (M=3)Quartile 4 (R=4) Quartile 4 (F=4) Quartile 4 (M=4)
  40. 40. RFM Segments – Churning Customer Quartile 1 (R=1) Quartile 1 (F=1) Quartile 1 (M=1) Quartile 2 (R=2) Quartile 2 (F=2) Quartile 2 (M=2) Quartile 3 (R=3) Quartile 3 (F=3) Quartile 3 (M=3) Quartile 4 (R=4) Quartile 4 (F=4) Quartile 4 (M=4)
  41. 41. Your best customers are those who fit the combination of most recent, most frequent, and highest monetary value. R1∙F1∙M1• Exclusive preview of new products.• Early access to limited Recency inventory. (Top Quartile)• Exclusive discounts or offers.• Free gift for best Frequency Monetary Value customers. (Top Quartile) (Top Quartile) http://ar.gy/whatcountswhitepaper
  42. 42. R =1 F = 1 M = 1http://ar.gy/whatcountswhitepaper
  43. 43. “Best Customers” Gallery
  44. 44. “Best Customers” Gallery
  45. 45. “Best Customers” Gallery
  46. 46. Let’s explore more customer groups. Best (111) Deadbeats Loyal (X1X) (4XX) Almost Lost Big Spenders (3XX) (XX1) Campaign Management Splurgers New Spenders (X41) (141) Win-back Loyal Joes (411) (214)
  47. 47. Incent Loyal Joe’s to spend more. “Every 5th Item is FREE” • High hurdle • They like and trust you • Expiration datehttp://ar.gy/whatcountswhitepaper
  48. 48. Inform New Customers of Standard Features “Always Free Shipping” • Benefits of shopping with you • Personal greeting • Invitation to connect on socialhttp://ar.gy/whatcountswhitepaper
  49. 49. Get Rid of Deadbeats “Last chance!” • Force action or gone • Incentive optional • Improve deliverabilityhttp://ar.gy/whatcountswhitepaper
  50. 50. Special Offer for WhatCounts Users:Waive Magento “Download Fee.”$1,995 for Enterprise$749 for Community
  51. 51. Questions?
  52. 52. Next Webinar by Next Webinar by WhatCounts Windsor CircleTitle: “Creating Email Marketing Title: “How to Retain Customers Effectiveness with On-Premise in a Google Shopping World” Solutions”Date: Tuesday, July 24, 2012 Date: Thursday, July 26, 2012Time: 2:00 - 3:00 PM EDT Time: 12:00 - 1:00 PM EDTReserve your Webinar seat now Reserve your Webinar seat now at: at: http://ar.gy/1Sdn https://www1.gotomeeting.com /register/720587048 http://ar.gy/whatcountswhitepaper
  53. 53. Contact Windsor Circle Windsor Circle, Inc.Speaker Contact Information: 111 E Chapel Hill StreetBrad McGinity Suite 100VP, Sales & Marketing, Windsor Circle Durham, NC 27701(919) 822-2009 (919) 822-2009Brad@WindsorCircle.com www.windsorcircle.com
  54. 54. Contact WhatCounts WhatCouns, Inc. 3630 Peachtree Road, NE Suite 900 Atlanta, Georgia 30326 1-866-804-0076 www.whatcounts.com Twitter: @WhatCounts sales@whatcounts.com
  55. 55. Thank You for Attending!

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