Succeeding as a startup - especially in retail or eCommerce - can be extremely difficult in today's highly competitive economy. In fact, a 2013 study of US startup success rates found that nearly half of all startups will fail within just three years, primarily due to lack of knowledge, planning, and/or record-keeping skills.
Beating the Odds
However, startups who leverage data to increase customer retention rates enjoy considerable growth, because they wisely use the knowledge gained from their records (i.e. data) to plan advanced marketing campaigns that improve the customer experience and yield higher returns.
Herbal supplement company,Vital Plan, for example, needed metrics like Customer Lifetime Value and Average Order Value to give to potential investors and help drive their marketing strategy. But, as CEO and Co-Founder Braden Rawls noted in a recent interview, it is very difficult and labor intensive to calculate such data. They also needed a way to easily deliver automated email marketing campaigns with personalized content, in order to reach segmented customer groups with more targeted messages that relate to their particular interests and needs.
That's why the team at Vital Plan was thrilled to find the energetic, committed, and innovative experts at Windsor Circle, ready to help businesses succeed with its robust Retention Automation platform. "Tools like Windsor Circle allow us to better collect and manage data in an efficient way," Rawls stated.
In regards to their need to segment customers and automatically send more targeted emails, she noted, "Audiences respond in different ways, and so it's really important for us to be able to target customers with personalized messages, and that's something that Windsor Circle allows us to do more effectively."
"Even though we're a very small company, we are growing rapidly and feel like we are head of the marketing game because of Windsor Circle," Rawls added.
Understanding Key Retail Metrics
So what types of data does a business need, and how can Windsor Circle help a startup like Vital Plan use the data to grow? Here are some performance indicators that Windsor Circle enables businesses to gather, analyze, and apply in running more effective marketing campaigns that fuel success:
- Customer Lifetime Value (CLV): is the projected revenue from a customer relationship, or how much a business expects to earn from any given customer the entire time he/she is using their products or services, data that marketers can use to develop better customer retention strategies. For example, Windsor Circle can help businesses assess CLV to recognize churning or underperforming customers, and then increase sales with a series of win-back marketing emails.
- Average Order Value (AOV) and Median Order value (MOV) describe the typical dollar amounts spent per order by each customer. Windsor Circle helps startups succeed by using these values to segment customers by high, medium, and low spenders, and then design optimized email marketing campaigns that deliver different content to each group, with promotions tailored to the customer's particular spending habits.
- Segmentation and RFM (Recency, Frequency, and Monetary Value) Analysis involve the breaking down of customers into groups based on spending patterns and purchasing habits - valuable data which allows startups to tailor their email marketing campaigns for a range of customer segments. In addition to identifying standard segments including Best Customers, Churning Customers, Most Frequent Buyers, and more, Windsor Circle clients can request "Custom Segments" based on data that pertains more specifically to the client's business. Knowing segments like Business versus Residential Customers, Non-Coupon Users, and One-Time Shoppers, for instance, helps retailers differentiate their marketing messages and promotions for each segment.
- Customer Latency defines the average and median number of days between each purchase a customer makes, such as between their first and second purchase, second and third, and so on. Windsor Circle guides startups in using these numbers to govern the timing and tempo of email marketing campaigns, in order to reach customers when they are most likely to buy again.
Startups need data to succeed and gain investments, and these are only some of the many data analysis tools and features of Windsor Circle's Retention Automation Platform. Check out some of our proven results to learn about the great successes Windsor Circle clients have seen using our data-driven, customer centered marketing approaches.
Contact a Windsor Circle team member today, and find out how we can help you leverage data to power more informed, personalized, and profitable marketing campaigns that enable businesses to succeed.