One of the biggest predictors of retail success is Customer Lifetime Value (CLV), which is defined as the total dollars flowing from a customer over the entire relationship with that customer.
According to a recent survey of online retailers, more than half of respondents (55 percent) know their average CLV. This is a great start, but to truly create personalized marketing campaigns, you need to know much more about your customers.
Our Retention Analytics Suite integrates three years of customer purchase data, so that you can instantly see CLV for various segments and personas based on purchase history and other factors.
This customer data is essential for creating targeted email marketing campaigns to better engage with your audience. However, only 23% of surveyed retailers know their CLV by key segments, and are able to use this information to power personalized marketing campaigns.
With segmentation you can split your customer base into distinct groups, and automate messages appropriately for each cluster. When creating segments, we suggest starting out by dividing your customers in these four groups: best customers, non-purchasers, churning customers, and all others. We choose these groups because they will likely be your largest segments, and the easiest to target.
With our Custom Segment Builder, you can take segmentation even further with more factors like specific products or categories, date of purchase, or whether the order was made in-store or online. Using this data-driven behavioral marketing approach, you can trigger reminder emails to customers when they are due for product refills, as well as make relevant product recommendations based on purchase history, educate customers on new products, reward best customers and retain churning customers.
Segmentation adds value for your customers, and helps you engage with them in a meaningful and relevant way, which leads to your ultimate goal of retention. Retailers across all industries can leverage our Custom Segment Builder to create effective, personalized marketing campaigns. Download our Email Segmentation Guide for access to step-by-step instructions and more.
To learn more about the latest retention marketing trends in the eCommerce industry, download the 2015 Retention Marketing Survey.