How To: Transform Your Data to Insight to Action
A look at how retailers can leverage their data to generate insights that lead to more effective customer marketing (there's more to download)
The question on every retail marketer’s mind when collecting vast amounts of customer data should be, how do you turn it to insight and then take action? Since we all know, analyzing data and using it wisely will benefit the business’ bottom line.
You can routinely find ways to increase customer loyalty, purchase frequency, and revenue by using Optimove’s platform to consolidate, clean, and enrich all available customer data points. Then, you can use this “single source of truth” when sending out your CRM campaigns.
Today, we’ll show you how to use your customers’ first purchase category as a predictor of longevity. Start taking advantage of this insight and download all 4 ways to leverage your data for more examples.
Customer Data to Insight
You probably already know that customer acquisition costs are super high, and retaining customers is more important than ever before. And since every retailer’s customers are unique, you must identify the characteristics that differentiate between them. First-purchase data is one critical such characteristic.
Understanding who your most loyal customers are out of the bunch is key to incentivizing desired behaviors and actions.
For example, a retail client at Optimove discovered a direct correlation between the type/category of items purchased by customers during their first purchase – and longevity. Meaning, the amount of time that customers remain active with the brand has to do with the items they initially purchase.
In this specific case, the most pronounced correlation was among customers who bought leggings in their first purchase. Research shows that these customers were 20.7% more likely to make a second purchase (35% vs. 29%), 16.7% more likely to make a third purchase (14% vs. 12%), and 20% more likely to make a fourth purchase (6% vs. 5%).
Who would have thought that the first item your customer purchases determines the amount of time they’ll continue buying from you? Well, as you can see in the chart below, it clearly is true:
Insight to Action
How do you take these data insights and turn them into actionable CRM campaigns, though? Well, there are many creative, outside-the-box ideas you can try. However, in this case, the retailer used this insight to encourage first-time customers to purchase leggings using all available marketing channels. The results were cutting-edge.
Here are just three quick campaign ideas their marketing team put together in practically no time:
1. Acquisition Marketing –
They promoted leggings in acquisition marketing efforts, such as web banners and PPC ads.
2. Track & Trigger –
They promoted leggings to anonymous website visitors using Optimove’s Track & Trigger pop-up windows offering coupon codes, discounts, or free shipping.
3. Email Marketing –
Using Optimail, Optimove’s native ESP, they promoted leggings to newsletter subscribers in the welcome email sent to them after registering an account.
Start Generating Insights
This is but one example of how retailers can leverage their data to generate insights that lead to more effective customer marketing. There are plenty of additional ways we have researched to continuously help you discover new tactics to increase customer loyalty and engagement. Check our part 2 with tips on how to uncover customer-value segments.