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Customer Retention. Automated

Localization Meets Online Retail

Posted by Aviva Imbrey on Aug 20, 2015 9:45:00 AM

Geography and Shopping.location

Localization meets online retail.

In this article you will learn how to make some basic segments, ideas on promotions, and how to cross-promote brick-and-mortar retail with online stores.

 

 

How much does what you buy have to do with where you are?

A heck of a lot.

Beach towels in January? Sure, in the Bahamas. Ski gear in March?  In Colorado, that makes sense. Surfboards for Christmas? A staple in Australia. You get the point. Let’s look at the less obvious ways to use geographic data to help drive shopping online and in-store.

In this day-and-age, online retailers no longer have to play the guessing game about where their consumers live, eat, work and go to school.  With the available technology, they have the ability to target specific areas, predict goods and services for certain geographic regions, and market local trends faster than ever.


As a brick-and-mortar retailer, how can I use the geographic data to segment for the holidays?

With Black Friday and Cyber Monday around the corner, here are some tips on how to use segmentation combined with geography to drive sales between online and brick-and-mortar customers.


  1. Segment customers based on store locations, which can be found through shipping zip codes, billing zip codes, state, country, etc.


Once you do this, you can use this segment to run all kinds of campaigns based on what resonates with the geographic community your customers are in. You can also add more conditions, for example you could get as granular as finding all the the women with birthdays in March that bought a red umbrella during last year’s Black Friday sale.


  1. Find your best customers in those locations. You can do this by using the RFM analysis, which refers to recency, frequency and monetary values for each customer. Below you will see how to find your “best customers” through Windsor Circle’s Segment Builder and then filter on the locations that surround your store.  




Now that you have created this segment of top notch customers who live near your store, you can start creating deals specifically for them. You can:

  • Offer exclusive Black Friday promotions for use in stores

  • Drive them to your online shop with dual deals, easy pickups from store and hot combos

  • Showcase local products and seasonal groupings for their area, schools, and weather


Repeat!

You can’t stop with your best customers, keep building segments!

  • One-time buyers

    • Provide product recommendations based on hot items from last year

    • Welcome educate them on your brand with online and in-store deals

  • Last year’s buyers

    • Create a wishlist based off add-ons for last year’s most popular purchases

    • Offer gift cards to use during the same period of time this year


Engage your online business!

Black Friday might be huge for your in-store shoppers, but use segmentation to find out who doesn’t need to receive those in-store offers and drive them to shop online for Cyber Monday. Here’s how:


  • Find your best customers who are not associated with areas where you have a store location.

  • Simply use the same technique as above, but focus on states and zip codes that are not around your brick-and-mortar locations.


Now segment and promote away!

  • Give the most exclusive promotions to your best customers segment.

  • One-time purchasers should receive incentives to gift and share promotions among networks, as well as product recommendations and gift guides.

  • Highlight products and deals around expedited shipping and discounted add-ons.

  • Offer exclusively online sales and deals leading up to Cyber Monday.


Cross-merchandising between your online store and your physical store locations.

The best of both worlds. It is possible to use your online store to promote your physical store and vice versa. Using demographic data you can make sense of which of your customers would benefit the most from these types of campaigns.


  1. Find the customers that live in close proximity to your stores

  2. Drive them to shop online and pickup in-store for convenience and no shipping charges.

  3. Once you drive your customers to the store you can set up sales for impulse items and gifts to increase their basket size.

  4. Offer gift cards online to use in-store or the other way around to ensure you are always giving your customers a reason to buy from you where ever they are.

  5. Highlight customer service so you can ensure they are satisfied with the products by having the in-person interaction of returning or exchanging in their local store.

  6. Samples, add-ons, and BOGO’s for in-store pickup are also great ways to drive foot traffic to your store from online.


Now that you know where your customers are and how they shop, you can run some geographic campaigns for the Holiday season!

*Screenshots were taken from Windsor Circle's Custom Segment Builder

Customer Segmentation Guide for Retailers

 

Topics: Customer Retention, Holiday Marketing