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

1. Marketing to a
Mature Audience
Hannah McKie / Cotton Traders
@HannahMckie1

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• Data
• Strategies
• Digital Marketing Channels
• eCRM / Segmentation
Agenda

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Omni-channel
British clothing retailer
Customer audience:
50+ years
Classic & digital
customers
Order frequency:
3-9 months
68% Female, 32% Male

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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

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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

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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

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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

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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

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Actionable Insight
• Strategies
• Digital
Marketing
Channels
• eCRM
• Attribution
Now we have the data, what do we do with
it?

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Strategies
Stage of the life cycle – Start-up, Growth,
Brand Propensity, Brand Reputation

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Strategies
Retention/Acquisition/Reactivation?
KPIs?- New Acquisition, Retention, Profit, Brand
Awareness, Reactivation etc.

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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

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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

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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

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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

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Digital Marketing Channels
• Google/Bing – Paid ads /
Organic listings
• Social – Facebook,
Instagram, Twitter
• Display – GDN, YouTube
• Affiliates
• Email
• SMS
• OOH/DOOH/TV/Radio

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What to consider?
• Frequency of ads
• Time of day
• Promotional activity
• Segmentation
• Demographics
• Device
• Preferred marketing channel

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Google Analytics
• Location
• Gender
• Time of day
• Frequency
• Device
• Behaviour

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Google Ads
• Demographic/Location/Devices
• RLSA Lists
• Similar Audiences
• Smart Lists
• Custom Match
• In Market Audiences
• Smart Shopping

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Facebook
• Demographic/Location/Device
• Site Interaction
• Targeted Interests
• Email Lists
• Look-a-likes
• DPA Ads

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Display

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Display

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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

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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