Although women’s luxury knitwear company White + Warren/Kinly had enjoyed annual digital growth, the challenge of how to continue to grow with the right customers remained. In this session, White + Warren/Kinly Founder & CEO Susan White Morrissey and Karen DiClemente, Director of Strategy for Listrak, will share how understanding your audiences and proper customer segmentation can lead to success.

1. Susan White Morrissey Karen DiClemente
CEO | Strategy Director | Listrak
Why proper customer
segmentation yields big dividends

2. A G E N D A + Introductions
+ The Issue
+ Moving Up the Segmentation Maturity Model
+ Learnings
+ What’s Next?
+ Discussion
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3. 3
INTRODUC ING

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5. + Carried by 800 global retail partners +
eCommerce majors
+ Known for excellent customer loyalty and
engagement, particularly on email
+ Seeing annual digital growth, +25% since
2015
+ The challenge the brand faces:
How to continue to grow with
the right customers?
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6. 6

7. + New line conceptualized in the heart of
NYC by an all-female design team
+ Concept inspired by the bonds between
women and celebrates those strong
relationships at all times.
+ Collection focused on the sweet spot
between athleisure, office wear and going
out-clothes for women who want to feel
comfy but look polished
+ Launched February 2018, currently carried
by 175 boutiques + eCommerce players
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8. 8

9. RE LE VANC E DRIVES RE VE NUE
WHY IS IT SO HARD TO FIND?
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10. S E G M E N T A T I O N M A T U R I T Y M O D E L
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BATCH & BLAST REPORT-BASED GOAL-BASED BEHAVIORAL PREDICTIVE

11. T H E S T A T E O F R E T A I L E M A I L
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WEBSITE
BROWSER
ANONYMOUS
SUBSCRIBER
CART ABANDONER
& ACCOUNT-HOLDER
ONLINE
PURCHASER

12. Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18
S E G M E N T A T I O N M A T U R I T Y M O D E L
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13. MOVING FROM ONE - S I Z E - FITS - A L L
TO GOAL - BASE D SEGME NTATION
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14. S E G M E N T A T I O N M A T U R I T Y M O D E L
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BATCH & BLAST REPORT-BASED GOAL-BASED BEHAVIORAL PREDICTIVE

15. E M A I L S T R A T E G Y
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Identify Audiences
Determine which audiences
warrant different email
strategies (subject lines,
promotions, creative, etc.)
Baseline Metrics
Determine/identify
audience benchmark
metrics
Testing & Optimization
Develop A/B testing strategy
for each audience to
improve performance
VIP Customers
Active Customers + Inactive Customers
Active Noncustomers + Inactive Noncustomers

16. E M A I L S T R A T E G Y
16
Identify Audiences
Determine which audiences
warrant different email
strategies (subject lines,
promotions, creative, etc.)
Baseline Metrics
Determine/identify
audience benchmark
metrics
Testing & Optimization
Develop A/B testing strategy
for each audience to
improve performance

17. T A R G E T E D A U D I E N C E S
VIP Customers
Receive early access to
new arrivals and sale
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Active Customers
+ Inactive Customers
Receive all email
communication and open at
+30% a consistently higher-
than-industry average rate
Active Noncustomers +
Inactive Noncustomers
Receive limited
communication, new
arrivals and sale emails only

18. E M A I L S T R A T E G Y
18
Identify Audiences
Determine which audiences
warrant different email
strategies (subject lines,
promotions, creative, etc.)
Baseline Metrics
Determine/identify
audience benchmark
metrics
Testing & Optimization
Develop A/B testing strategy
for each audience to
improve performance

19. S E G M E N T A T I O N M A T U R I T Y M O D E L
19
BATCH & BLAST REPORT-BASED GOAL-BASED BEHAVIORAL PREDICTIVE

20. U S I N G G O A L - B A S E D
S E G M E N T A T I O N
Target campaign messaging to
each segment of your list
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New subscribers
Active subscribers
Lapsing subscribers
Inactive subscribers

21. G O A L - B A S E D S E G M E N T A T I O N
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Purchase Frequency
PurchaseRecency
New Active
Inactive Lapsing
Goal:
Nurture & Engage
Goal:
Sustain & Expand
Goal:
Opportunistic Reactivation
Goal:
Mitigate & Engage

22. LEARNINGS
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23. T A R G E T E D A N D F U R T H E R S E G M E N T
B Y C U S T O M E R B E H A V I O R
VIP Customers
Perform at more than
double the conversion
rate of active list
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Full Price Shoppers
70% of business
Sale Shoppers
30% of Business

24. P E R S O N A L I Z A T I O N F O R A C T I V E C U S T O M E R B A S E
Capitalize on the
+30% open rate
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Target by product
purchase behavior

25. Over the past year, more
than 50% increase in list size
Majority is not engaging as
the core audience
E N G A G E I N A C T I V E C U S T O M E R S
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Expanded post-purchase
flow to engage customer
New creative
Time-sensitive promotions

26. WHAT ’S NE XT?
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27. S E G M E N T A T I O N M A T U R I T Y M O D E L
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BATCH & BLAST REPORT-BASED GOAL-BASED BEHAVIORAL PREDICTIVE

28. G O A L - B A S E D S E G M E N T A T I O N +
P R E D I C T I V E P R O D U C T R E C O M M E N D A T I O N S
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New Active Lapsing Inactive

29. • Data collection is key to understanding your customers
• Start with the basics!
• Never stop testing – subject lines, promotions, personalization elements, etc.
• Watch your metrics – they are the window into your recipient’s inbox
K E Y TA K E A W AY S
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30. QUESTIONS?
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THANK YOU!
Karen DiClemente
Karen.DiClemente@Listrak.com
Susan White Morrissey
Susanw@whiteandwarren.com