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

1. eCommerce Customer
Segmentation Strategies

2. Before we get started…
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• 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. Tweet!
Tweet about this webinar using #WindsorCircle
Follow:
@WindsorCircle
@McGinity
@WhatCounts
http://ar.gy/whatcountswhitepaper 3

4. Today’s Speaker
Brad McGinity
VP, Sales & Marketing
Windsor Circle, Inc.
4

5. Quick Wins Using Your eCommerce Data to
Double and Triple Email Marketing Revenue in 2012
http://ar.gy/whatcountswhitepaper

6. Special Offer for WhatCounts Users:
Waive Magento “Download Fee.”
$1,995 for Enterprise
$749 for Community

7. Agenda
Why You Should Care
Quick Wins
1. Win Back Old Customers
2. Cross/Up Sell
3. Procrastinators
4. Triggered Product Recommendations
5. Triggered Product Reviews
6. Best Customers
Identifying Customer Segments with RFM
Analysis

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 Engage
http://ar.gy/whatcountswhitepaper

9. Holiday '11
Last
Purchase ≥
11.15.2011
Last
Engage win back Purchase ≤
techniques. 12.31.2011
1. “We miss you.”
2. Increase Frequency, and
suppress 2012 Buyers.

10. 11/15/2011 <= ‘PURCHASE’ <= 12/31/2011
http://ar.gy/whatcountswhitepaper

11. “Holiday '11” Gallery

12. “Holiday '11” Gallery

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 History
http://ar.gy/whatcountswhitepaper

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. Category and Brand History
http://ar.gy/whatcountswhitepaper

16. “Cross / Up Sell Gallery”

17. “Cross / Up Sell Gallery”

18. “Cross / Up Sell Gallery”

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 Save
http://ar.gy/whatcountswhitepaper

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 ≤ 12.25.2011
1. Wall Street Journal. Gift Shoppers Flocked to the Web. 12.24.2010. Ann Zimmerman.

21. http://ar.gy/whatcountswhitepaper

22. “Procrastinators Gallery”

23. “Procrastinators Gallery”

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 Items
http://ar.gy/whatcountswhitepaper

25. Simply Use Custom
Fields

26. To Drive Dynamic
Content

27. To Drive Dynamic
Content

28. “Triggered Product Recs”

29. “Triggered Product Recs”

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 Review
http://ar.gy/whatcountswhitepaper

31. Triggered Email 14 Days After
Purchase
http://ar.gy/whatcountswhitepaper

32. “Triggered Product Reviews”

33. “Triggered Product Reviews”

34. “Triggered Product Reviews”

35. Quick Win #6
Get Your Best Customers to Spend Their Cash With You
Engage through
Identify Best Customers
Exclusivity
http://ar.gy/whatcountswhitepaper

36. Meet RFM Analysis.
Recency – Number of days or
months since last purchase
Frequency – Number of
purchases made
Monetary Value – Amount
spent by a customer
http://ar.gy/whatcountswhitepaper

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. 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. RFM Segments – Best 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)

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. 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. R =1 F = 1 M = 1
http://ar.gy/whatcountswhitepaper

43. “Best Customers” Gallery

44. “Best Customers” Gallery

45. “Best Customers” Gallery

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. Incent Loyal Joe’s to spend more.
“Every 5th Item is FREE”
• High hurdle
• They like and trust you
• Expiration date
http://ar.gy/whatcountswhitepaper

48. Inform New Customers of Standard
Features
“Always Free Shipping”
• Benefits of shopping
with you
• Personal greeting
• Invitation to connect
on social
http://ar.gy/whatcountswhitepaper

49. Get Rid of Deadbeats
“Last chance!”
• Force action or gone
• Incentive optional
• Improve deliverability
http://ar.gy/whatcountswhitepaper

50. Special Offer for WhatCounts Users:
Waive Magento “Download Fee.”
$1,995 for Enterprise
$749 for Community

51. Questions?

52. Next Webinar by Next Webinar by
WhatCounts Windsor Circle
Title: “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, 2012
Time: 2:00 - 3:00 PM EDT Time: 12:00 - 1:00 PM EDT
Reserve 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. Contact Windsor Circle
Windsor Circle, Inc.
Speaker Contact Information: 111 E Chapel Hill Street
Brad McGinity Suite 100
VP, Sales & Marketing, Windsor Circle Durham, NC 27701
(919) 822-2009 (919) 822-2009
Brad@WindsorCircle.com www.windsorcircle.com

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. Thank You for Attending!