How to Treat Every Customer Campaign as a Marketing Experiment

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Use Control Groups to Run Marketing Experiments

As a marketer or retention expert, you are spending plenty of time and money on your customer retention campaigns. This article will discuss how to measure the effectiveness of your campaigns – in monetary terms – in order to optimize future campaigns and maximize the revenues they generate. In other words, we’re going to explore how to treat every campaign as a “marketing experiment.” Many marketers use email open rates and click rates as their primary means of measuring campaign effectiveness. These metrics may provide important insight into brand strength and customer engagement, as well as aspects of the actual email campaign (e.g., the offer, the subject line and the template visuals). However, these metrics…

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Existing Customers versus New Customers: What’s Your Ideal Future Revenue Balance?

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New vs Existing Customers

Will most of your future revenues come from existing customers or from new ones? This simple question is one that marketing analysts should consider carefully, because it can provide a unique perspective on the overall health of your business – and it can provide important input to long-term strategic planning. We asked ourselves this question regarding the many companies who rely on our software and expertise to plan and execute their customer marketing and retention efforts. What we found eventually led us to the conclusion that every business can gain important new insight into its strategic planning by investigating the expected source of its future revenues. Existing Customers versus New Customers: How to Make a…

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Customer Segmentation for Personalized Retention Marketing

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This article takes a thorough, high-level look at how our iGaming and Forex clients perform customer segmentation to target their marketing efforts and thus increase spend and customer lifetime value. The strategies discussed here are applicable to any company or website with paying customers, with or without our software. In the old days, companies sent the same marketing campaigns to all of their customers. Later, marketers began to understand that even simple grouping of their customers allowed them to run more relevant, effective and profitable campaigns. More recently, sophisticated marketers and retention experts have discovered that applying the latest technologies to this challenge deliver far more targeted – and profitable – campaigns. The reason is…

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Online Casinos vs. Social Casino Games

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Understanding the Differences between Online Casino Gamblers and Social Casino Game Players The explosive growth of the social gaming market – with 300 million active users per month at Facebook alone (source) – has put this domain on the radar of online casino operators interested in tapping into this trend. On the other hand, because only about 2% of social gamers are paying players, social gaming operators are looking towards the $30.3 billion online casino industry (source) to figure out how to better monetize their player base. In a sound bite: Social games have the reach, while online gambling has the money. We believe that there is extensive opportunity for these two domains to accelerate…

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Behavior-based Customer Segmentation for More Effective Retail Marketing

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Retail marketers are constantly looking for ways to improve the effectiveness of their campaigns. One way to do this is to target customers with the particular offers most likely to attract them back to the store and to spend more on their next visit. In other words, the marketer’s goal is to make the most relevant match between customer and offer. This article presents a highly-effective means of accomplishing this goal using shopping behavior-based customer segmentation. The Marketing Benefits of Customer Segmentation To get the most uplift from a marketing campaign, the campaign should be directed at the customers most likely to respond to it. By using customer segmentation to determine actionable “customer prototypes,” the…

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Maximize Customer Value by “Re-Incubating” your “Back from Churn” Customers

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One of the foundations of our customer modeling technology is tracking the movements of customers among lifecycle stages over time. Years of experience has proven to us how valuable it is to compare current customers to others who have shared a similar pattern of lifecycle stage movements. In order to fully implement this approach, we monitor a lifecycle stage ignored by many marketers and analysts: the stage containing customers who have abandoned the business, and who later returned. We call this stage “Back from Churn” or “FromChurn” for short. Because our approach requires us to isolate this as a distinct lifecycle state, we have been able to glean fascinating insights into customer behavior that would…

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Improved Churn Prevention Driven by Human Behavior Modeling

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Online casino operators generally launch retention efforts on a group of players when the activity levels of those players drop significantly. However, once a player has already reached the point of churning, promotional offers are often no longer effective. The obvious goal is to identify which players will churn before they actually do. Ideally, the operator will be able to make this determination even before the player himself realizes what he is going to do.   The Difficulty of Predicting Churn Churn prediction modeling techniques attempt to understand the precise customer behaviors and attributes which signal the risk and timing of customer churn. The accuracy of the technique used is obviously critical to the success…

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Proactive Customer Retention: The Next Growth Engine for Forex Sites

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In any industry, customer retention starts with a great product and great customer service. Beyond these basic factors, which always encourage customers to return more frequently and spend more, marketers should also engage in “proactive retention” efforts. For example, offering relevant incentives and promotions to forex traders can dramatically increase trade volume and frequency. The key is successfully delivering the most relevant and effective offer to every trader, at the right time. Why engage in proactive retention efforts? Customer acquisition is very expensive and competitive, whereas people who have already made one or more deposits on your site represent low-hanging fruit for you to grow into long-term, high-volume traders. It is well-known that approximately 50%…

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