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Customer Retention. Automated

Top 4 Data-Driven Segments for the Food & Beverage Industry

Posted by Enelda Butler on Jul 1, 2015 9:38:00 AM
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Food and beverage retailers using batch and blast email marketing are challenged with relevantly reaching their individual customers. By leveraging purchase data, food and beverage retailers can strategically design email marketing campaigns with the highest potential for customer retention. 

With a data-driven lifecycle marketing approach, they are able to not only trigger reminder emails to customers when they are due for product refills, but also make relevant product recommendations based on purchase history, educate customers on new products, reward best customers and retain churning customers. 

Food and beverage companies have a variety of potential segments to reach within their customer base. Here are four suggestions for data-driven segments for these retailers, as illustrated by WC Grocers, an (imaginary) online grocery store.

 

SEGMENT 1: SEASONAL CANDY

WC Grocers is running a special promotion on Halloween candy this year that they will share with all customers who bought any of these items last year. To reach this group, you want to segment by category and timeframe. In this case, that is anyone who bought candy during October of the past year.

halloween_segment

 

SEGMENT 2: HOT COMBO

The next segment we’ll create is based on a hot combo, which is two products that are frequently purchased together. With this segment you want to find customers who have bought product X, but not product Y. In this example, we want to find everyone who purchased the WC Pinot Noir, but has not bought the steak that pairs well with the wine. With this information, you can send this group a message with a coupon for their next wine purchase, as well as a recipe for the steak in hopes that they order that item as well.

wine_pairing_segment

 

SEGMENT 3: REPLENISHMENT

WC Grocers sells many replenishable items, so they use customer purchase data to create replenishment campaigns for customers who are due for product refills. For example, they are going to create a segment that targets anyone who has purchased WC Dark Roast Coffee to remind them that they should re-order soon. The lifetime of the coffee is 60 days, so the email will be triggered 55 days after the purchase date, ensuring customers receive the email before they run out.

 coffee_segment

 

SEGMENT 4: LOYALTY REWARDS

WC Grocers has a loyalty program that rewards customers based on their continued purchases from the online store. To track customers’ progress, WC Grocers has created a custom field for loyalty points. Once customers reach a certain threshold (for instance, 250 points) they will automatically receive a reward, like a coupon for a free item of their choice.

 

These four examples are just the beginning when it comes to segmentation. Learn how retailers across all industries can leverage our Custom Segment Builder to create effective, personalized marketing campaigns.

 

Customer Segmentation Guide for Retailers

 

Topics: Best Practices