Where the Grass is Greener: 9 Actionable Insights from Optimove’s Clients
Taking a closer look at your data is crucial, as long as you know how to put the information to good use. We gathered the best insights from current Optimove users to help you better personalize your communications and optimize your businessPosted in Customer Retention, E-Commerce, Data Analysis, Wisdom on 21 December 2017 by:
Companies are always searching for the next BIG thing. A bestseller, a trend setter, a game changer…In marketing, we are looking to build creative and innovative strategies that will engage our customers, strengthen purchasing behaviors and, as a result, significantly increase company revenue. But how do we achieve these new heights?
Learning from others’ experience is human nature. Do we really need to reinvent the wheel?
We've gathered examples from 9 companies, with expertise in the e-commerce world, gaming world, and everything in between, to share with you some of the actionable insights they've experienced while working with Optimove. Insights that have helped them fuel their growth both in regards to revenue and customer loyalty.
1. Optimize; One Size Does Not Always Fit All: To test the effectiveness of 3 offers (BOGO, BTGO and Free Shipping), this brand created one recurring Self Optimizing Campaign to identify which audiences generated the highest ROI from each specific offer. The preference of each customer became clear. Today, customers receive only the offer proven most effective with other customers of the same behavioral DNA.
Key takeaway: This way, the brand is no longer spending unnecessary money (promotions) on customers who respond to a lower valued offer, resulting in maximizing not only direct revenue, but also the overall lifetime value of customers.
2. Look for that Good Start: Optimove’s software found that customers with the highest predicted future value bought items from specific categories for their first purchase. Using this insight, the company was able to redefine their acquisition campaigns to include content and creatives related to those specific categories. The brand also used this insight to create a strategy for customers who have purchased in these categories to ensure they reach their full potential value (treating them as potential VIPs).
Key takeaway: By segmenting and targeting customers whose first purchase included specific categories, the company was able to:
*Increase their monthly relationship marketing revenue by 15%
*Multiply their YoY number of active customers by 2.3x
*Increase average order value by 22%
3. Subscribe and Conquer: Optimove identified that customers who held a monthly subscription and changed their product selection or updated their preferences had a significantly higher predicted future value.
Key takeaway: In an effort to encourage customers to change their selection (and maximize the future value per customer), the company automated their engagement strategy to introduce customers to the various types of available packages.
4. Encourage Customer Ratings and Review: Optimove found a direct correlation between a customer’s willingness to rate products and experiences (regardless of rating level), and an increase in future value for those customers.
Key takeaway: The brand has since implemented an automated campaign to encourage and increase customer ratings. Since doing so, the company has:
*Increased average order value by 64%
*Increased customer LTV by 19%
*Decreased customer churn rate by 22%
5. Minimize Number of One Timers: Optimove’s ability to identify behaviors of one-time purchases has enabled this brand to create a journey to encourage second-time purchasing. The journey includes increasing the incentive customers receive to ensure they don’t hit the point of (potentially) no return.
Key takeaway: This brand has succeeded in decreasing the percentage of one-time purchasers YoY and increased the percentage of returning purchasers not only for second, but third and fourth purchases as well.
6. See the Full Picture: In addition to relying on purchase history, the brand utilized Optimove’s web activity tracker to increase visibility of their customers’ onsite behavior, using this data to improve personalized marketing.
Key takeaway: By utilizing both past and present data points, this brand increased reactivation of churned customers as well as increased conversions from leads to purchasing customers. They also increased response rates to cross-selling campaigns, which included only relevant products based on their customers’ online searches (rather than random cross-selling based on the company’s interest).
7. Cross-Sell: Optimove revealed that customers who purchase from multiple product departments in their first two orders have a significantly higher predicted future value compared to customers who purchased from a specific product category. This insight was counter intuitive to the brand, as analysis showed customers who purchased multiple items from the same category had a higher total revenue.
Key takeaway: The brand has since added cross-selling campaigns with product recommendations via Optimove’s Self-Optimizing Campaigns.
8. Get to Know the Individual: Optimove identified various purchasing patterns for specific customer groups and built individualized risk of churn predictions for each customer, based on their individual purchasing history and average purchase frequency. With a flexible and accurate understanding of churn probability, many companies have increased customer loyalty through individual personalized campaign.
Key takeaway: Using this information to create Risk of Churn Campaigns for Active customers, many companies were able to not only reduce churn rates, but also increase order value and purchasing frequency of their customers. One brand succeeded in:
*Decreasing customer churn rate by 16%
*Increasing average customer order value by 66%
*Increasing average customer purchase frequency from every 89 days to every 64 days
9. Last but Not Least- Don’t Burn Them Out: Optimove’s customer model exposed where the company over-used communication and campaigns, subsequently creating a "burn-out" effect, causing customers to churn. By identifying the tipping point, the company can adjust the level of engagement with customers to ensure both the customer and the company efficiently move through their journey.
In conclusion: No matter how much you know about your brand and your customers, there is always room to learn more. Be open to your data and let it tell you the story. Let Optimove show you aspects of your customers’ behaviors that you are not aware of, and guide you to the personalization that your customers deserve and the optimization your business deserves.
What will Optimove teach us about your brand, your customers and your strategy? We can't wait to find out!
Contributor: Agathe Westad