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Customer Retention. Automated

5 Steps to Flawless Health & Beauty Marketing

Posted by Mallorie Moore on May 14, 2015 8:58:00 AM

A quick and easy way to grow revenue and customer engagement is to interact with key segments of your customers in different ways. From churning customers to customers buying replenishable products here are 5 steps to creating flawless marketing campaigns in the Health & Beauty Industry.

Scenario: Beautopia, an international beauty brand, has noticed eCommerce sales are trending downward and open and click rates are at an all time low.

Solution: Beautopia will focus on creating more relevant email sends for its online store subscribers, since messaging is only impactful when it’s relevant. This will help them quickly ramp up engagement rates, and get back to a steady revenue stream and ROI.

To do this, Beautopia will need to build 5 strategic customer segments that will allow for targeted email communication with their customer base.

Segment #1 - Churning Customers Who’ve Purchased XYZ

It just so happens that Beautopia was recently mentioned in InStyle as the #1 beauty retailer for their dry skin nutritives. So, they are going to use this press mention to excite latent customers with the goal of reducing churn. To do so, they will build a win-back segment for customers who have purchased any of the products mentioned in the article. Here’s how:

  • Drill down on SKU to find customers who’ve purchased any of these products before. 
  • Set parameters around purchase date recency, for example, more than 60 days ago. 

The email content includes “We miss you” language with hyperlinked text and images driving viewers to product pages. Beautopia plans to run this campaign for 3 months while the content is relevant, and will continue to build similar segments as their brand is additionally mentioned in the press.

Pro tip: They could also create the same segment without the recency filter, and share the press content with customers who’ve purchased the products that are mentioned and simply leave out any “we miss you” language.

Segment #2 - Replenishment

For all of their replenishable products, Beautopia is going to build replenishment campaigns in order to boost customer lifetime values (CLV). After evaluating the lifetime of various products, they will use customer purchase data to target those customers who are due for product refills. For example, they are going to create a segment that targets anyone who has purchased Ultra Shine Shampoo and create an email that reminds Ultra Shine Shampoo purchasers when they are due for a refill. Here’s how they will create the segment:

  • Drill down on Product Name to find customers who’ve purchased Ultra Shine Shampoo.

Since they’ve determined the lifetime of the shampoo is 60 days, they will set the email to deploy 55 days after the product is purchased, ensuring customers receive the email before they run out.

Pro Tip: Since Beautopia has access to predictive analytics, they can also use the field WC_Replenish_Date as the trigger to send a reminder email about their replenishable products automatically in their ESP.

Segment #3 - Product Recommendation

Beautopia has over a hundred different product categories. They sell products within categories such as regimen, collection, concerns and results. Beautopia is going to build product recommendation segments in order to recommend the right products to the right people. Doing so will increase their CLV and loyalty to the products they offer. For example, Beautopia will create a segment containing customers who have purchased shampoo or conditioner for damaged hair, but have not purchased the reconstructive serum that delivers long-lasting results. They only want to target those who’ve purchase one or both of these products in the past year, since they’ve determine that anyone who has purchased these products over a year ago should no longer be managing damaged hair. Here’s how they will create the segment:

  • Drill down on customers who have purchased SKU DMG123456 or DMG123457 but have not purchased SKU DMG123458.
  • Set order date within 1 year.

They will then deploy an email that recommends the reconstructive serum for damaged hair to the right people, automatically. Beautopia might also implement hot-combos, which suggest related items. Kicking these emails off at the appropriate time is vital, so Beautopia would determine when product recommendations are most effective, whether that be 5 days after a purchase or 25, then deploy on that date.

Pro Tip: Since Beautopia has access to predictive analytics, they can also just use the field WC_Actual_Date as the trigger to send the recommendation email on the right day to the right people.

Segment #4 - How-to Guide

Beautopia is releasing a new line, Heavenly Highlights, a four-step, at-home hair highlighting kit, which each includes a pre-treatment, dye, post-treatment sealer, and long-term maximizer. To maximize the depth and lifetime of the highlights, users must follow a detailed process. Beautopia is going to send how-to guides to Heavenly Highlights purchasers 2 days and 4 days after purchase. The how-to guides will serve as product educators and will ensure customers are seeing results, so that they will become product evangelists. Here’s how they will create the segment:

  • Drill down on product name to find customers who’ve purchased any Heavenly Highlights product.
 

Segment #5 - Geographical Location

Beautopia is throwing a launch party for their new Ft. Lauderdale, FL location in 2 months. Tickets are $20 each and are required for entry, but anyone who purchases the $30 suncare product special offer (going out in an email) from the eCommerce site within the days leading up to the event will receive free entry. So, to engage with the right people, Beautopia wants to deploy a promotional email targeting customers and email subscribers in the surrounding geographic region. Here’s how they will create the segment:

  • Drill down on Ft. Lauderdale and surrounding zip codes.

As a bonus, Beautopia might create another segment that includes anyone living in the state of FL and suppress all of the zip codes included in the first segment. Their email messaging would read something like, “Travel plans to Ft. Lauderdale this summer? Join us on July 10th for our Ft. Lauderdale launch party…” They know it would be wise to set purchase date parameters around last date of purchase, since latent customers who haven’t purchased in a year and have since moved to another state won’t have updated shipping addresses. (But there’s plenty Beautopia can do to target these relocated customers!) Here’s how they will create this bonus segment:

  • Drill down on the state of Florida.
  • Suppress all of the Ft. Lauderdale and surrounding zip codes included in the previous segment.

Pro Tip: Beautopia can create a Post Purchase Thank You series that automatically enrolls all individuals who purchase the suncare special, and deploys an email inclusive of the free event tickets.

Result: By creating segmented, data-driven emails, Beautopia will see increased open and click rates, as well as revenue growth.

For more on how you can use data-driven segmentation to reach your unique customers, increase engagements, and get revenue generating results, request your FREE demo today.

Related articles:
Weather Proof Email Marketing
What Is Segmentation Anyway?
Predictive Analytics For Email Marketing