How About You Get 10% More Revenue From Each Active Customer?
That's just one of the business-boosting results NYRA saw when the company implemented a lifecycle stage-based model and scaled its CRM Marketing. What else? Try 54% improvement in activating new customers. Want more? Check out the blog and the full case study below
Sometimes, the answer is right in front of us. The incredible potential impact your existing customers hold is one of those things, so obvious that they seem to hide in plain sight.
But, just imagine that 80% of your customers who sign up to your website, don’t ever make a purchase. Meaning, all your eCommerce revenue comes from the 20% who sign up and make a purchase.
Now imagine that you improve that conversion rate by 50%, so instead of 20%, it’s now 30%. Dare to think what will it do to your total revenue?
If that’s not enough, we’ll remind you that you already have the most important, basic ingredient you’ll need to get this 50% improvement – you got these users’ email and/or phone numbers, and lots of other data points. Sending them the personalized communications that will drive better post-sign up conversion rates up should be a no-brainer.
Oh, and did we mention that sending emails and push notifications or even text messages are, like, a billion times less costly than the acquisition campaigns?
But, still, many brands do not pay enough attention to measurements like “migration rates,” which show you how your customers move from one lifecycle stage to another. Heck, tons of brands do not even use lifecycle stages.
That’s not the case with NYRA, The New York Racing Association. Frankly, it’s not the case with any of Optimove clients – they all get it, they all use lifecycle stages, and they all are ahead of many of their competitors with their understanding of the strategic importance of CRM Marketing.
But the way NYRA went about improving its Customer Lifetime Value metrics is worth a closer look.
The New York Racing Association, Inc. (NYRA), was created in 1955. It operates in New York’s three major racetracks (Aqueduct Racetrack, Belmont Park, and Saratoga Racecourse). Their online bet platform was founded in 2016 and now operates in over 30 states in the United States while growing to additional ones every year.
As NYRA launched its online betting platform, the company suffered from a legacy marketing stack that involved manual list handling, non-automated email marketing, and minimal access to customer data and insights.
As a result, the company struggled to scale its marketing efforts and lacked the capabilities to orchestrate personalized, multichannel customer communications. The team looked for a powerful solution to help them drive consistent growth, measure their incremental impact, and optimize their results.
With Optimove, NYRA’s team was able to go beyond automation and implement advanced experimentation practices, orchestrate multiple channels, and leverage Optimove’s robust analysis solution to save considerable time and resources
But, at the heart of it what allowed the company to execute a hyper-segmented CRM strategy is the Customer Model – that splits their players into the aforementioned lifecycle stages.
This model includes over 250 different customer attributes such as Average Win Amount and Yearly Bet Amount, which can be combined with Bet History, Campaign History, and predictive analytics to create granular segments that power hyper-targeted campaigns and offers.
NYRA’s Activation Rate, calculated as the migration rate from the Non-Depositor lifecycle stage to the New lifecycle stage, grew by 54%. Nowadays, 41% of NYRA’s segments include 500 customers or less, resulting in highly relevant customer communications.
Impacting strategic decisions with robust analysis using Optimove, NYRA can report on incremental uplift gained, track revenue progress, and closely watch their churn rates. They also report on their activation funnel progress constantly to spot changes and trends in their data.
Today, NYRA orchestrates emails using Optimove’s ESP, Optimail, realtime campaigns using Optimove’s Track & Trigger and recently started to combine Facebook campaigns right from within Optimove as well. According to NYRA, using Optimove’s native add-ons and built-in orchestration capabilities, they communicate with each customer effectively across multiple channels, directly impacting customer activation, cross-sell, and reactivation journeys.