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Customer Retention. Automated

Replenishment: The Art of Never Running Out

Posted by Enelda Butler on Feb 9, 2015 3:23:00 PM
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What if whenever you were about to run out of coffee, shampoo, razors and even toilet paper they all showed up magically on your doorstep? With data-driven automated replenishment campaigns, retailers can make this a reality for their customers.

Replenishment is a powerful driver for repeat business, as these products paired with effective campaigns can drive customer loyalty, retention, and consistent revenue.

Using data to automate messages to their individual customers, retailers can know their customers’ needs before they do. The goal is to trigger replenishment emails at the right time in the product lifecycle. This can be estimated in a number of ways: unique customer purchasing behavior, average customer usage, and even time that one thinks it should take to use a specific product.

A great example of replenishment campaigns is MyBinding, one of the largest retailers in the United States for binding and laminating related products. They currently have 43 different replenishment campaigns running, accounting for more than two-third of their total automated emails. The timing of the messages depends on the usage rate of the product, with emails triggered anywhere between four and eight weeks after the initial purchase date. Since customers often make purchases that contain multiple replenishable items, MyBinding has scheduled each product replenishment email to deploy on a specific day, ensuring customers do not receive more than one replenishment email on any given day.

Additionally, CleanWell, a retailer that provides safe, natural cleaning products, has seen success with automated replenishment messages. With the variety of soaps, detergents and other cleaning agents offered, CleanWell found that many consumers would benefit from a replenishment campaign to ensure they were receiving their favorite products regularly. CleanWell makes it easy for the customer to reorder their product of their choice – they simply click on the product image in the email to be taken to the order page on CleanWell’s website.

Replenishment emails are key to adding value for your customers, and help strengthen their relationship with your brand. These campaigns also drive repeat purchases and customer retention. More specifically, CleanWell has increased their number of repeat buyers by 206% with data-driven automated emails. Building on this success, CleanWell is in the process of creating replenishment messages for additional products as well.

If you’re interested in learning more about replenishment, download our Replenishment How-To Guide for tips, best practices, and examples of successful email campaigns.

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