#CNX14 - How Australian Retailer SurfStitch is Making Waves with Data-Drive Lifecycle Marketing

Track: Industry Trendsetters

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Automating a Wave of Engagement

Tamara Falcke, Email Channel Manager, SurfStitch

Andrew Pearson, VP of Marketing, Windsor Circle


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Automating a Wave of Engagement

40%Increase in Open Rates

65%Increase in Click Rates

72%Decrease in

Churn


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Tamara Falcke @tamarafalcke

• From Queensland, Australia• Communication Design @ Griffith

University• Email Channel Manager, SurfStitch• Largest Australian Boardsports &

Fashion Pure-play Retailer with sights set on global domination

• Data-driven decisions & customer-centric reasoning

• Related to the inventor of Vegemite


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Andrew Pearson @arjpearson

• From Canberra, Australia• MBA from UNC Kenan-Flagler• VP of Marketing, Windsor Circle• Lives in Durham, NC, the “Center of

the Retention Automation Universe”• Loves the power of data-science,

automation, and creative• $6.25MM Series B• Vegemite really is amazing


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2011 Best Pure Play Online Retailer2011 Best Use of Technology 2012 Online Retailer of the Year2012 Best Pure Play Online Retailer2012 Best Site Optimization and Design

2014 Best Pure-Play Online Retailer!


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“SurfStitch wins over its customers with stunning visual imagery, exceptional customer service

and seamless fulfilment”- ORIAS Awards


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Surf’s Up!

1 2 3

Challenges & Goals

Digesting the Data

Campaigns that Work


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Surf’s Up!

1) Download the Case Study:

windsorcircle.com/surf

2) Tweet an insight!Prizes:

$250SurfStitchGift Card

$100Gift

Card

@WindsorCircle

@SurfStitch

@ExactTarget

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Additional screenshots from website (2-3)


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• Australia’s #1 Online Surf & Fashion Retailer• Global headquarters on the Gold Coast,

Queensland• Recently bought back Billabong’s

shareholdings• Acquired Swell.com, leading US Surf retailer,

& announced consolidation of the global business

• Winner of multiple ORIAS Awards


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windsorcircle.com/surf


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Data-Driven Marketing:Customer retention-oriented marketing approach using customer data, and especially customer behavior, to determine the targeting, timing, and content of marketing promotions.

– Jim Novo, Author


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Vision: Make data-led decisions to optimize every subscriber’s and customer’s email journey


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Multi-Stage Automated Welcome


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Predictive Win-Back for At-Risk Subscribers and Churning Customers


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Making the Business Case for Automation

• ROI of repeat buyers

• Understanding size and opportunity of 1 time vs 2+ time purchasers.

• Personalization of Journey


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Getting the Right Technology in Play

ExactTarget• Powerful marketing platform• Tools to segment, test,

automate

Windsor Circle• Reliable data integration• Meaningful data insights• Making the data actionable


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Be Accountable

• Make someone in charge of retention & automation

• Map the lifecycle

• Budget for retention

• Set Goals & KPIs


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How do you get started?

By Getting Started!

Start Small, Dream Big.


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Keep it Simple

• How do you do the “extra work” of setting up automation?• Get 1 automated program

live each month• Gives time to evaluate results

• Low hanging fruit:• Welcome program• Win back campaigns


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Integration Data Science Automation Retention ROI


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What % of your customers are only shopping once?

How many times do you need them to shop before they become profitable?


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Repeat Buyers are Highly Valuable


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Key Segments in Windsor Circle Dashboard

* Sample Data Only


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Latency (Days Between Purchases)

Average Days Between Purchases

* Sample Data Only


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Data updated nightly to custom fields or data extensions in ExactTarget

Plus Custom, In-House, & Virtually Any Other Data Source


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Pre-packaged Integrations & Enterprise Grade Data Feeds


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Repeat Buyer Revenue, Latency, & CLV

Q1 Q2 Q3 Q4% Repeat customers (all time) 35% 34% 37% 38%% Revenue from repeat customers (all time) 70% 65% 70% 72%% Repeat customers shopping in 2014 50% 51% 52% 54%% Revenue from repeat customers 2014 71% 70% 71% 75%Median latency 2014 (repeat buyers) - days 64 66 67 68Average latency 2014 (repeat buyers) - days 180 185 190 193Median CLV 2014 (repeat customers) $230 $208 $210 $240

* Sample Data Only


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Number and Percent by Key Segment

Q1 Q2 Q3 Q4New 1x Shoppers 12,400 14,821 13,880 31,789 New customers % 3% 4% 3% 7%Existing customers 380,100 392,500 407,321 421,201 Existing customers % 97% 96% 97% 93%Churning Customers 4,002 5,780 3,790 2,678 Churning Customers % 1% 1% 1% 1%Retained (3x) Customers 137,375 138,489 155,844 172,136 Retained (3x) Customers % 35% 34% 37% 38%Total customers 392,500 407,321 421,201 452,990

* Sample Data Only


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Weekly Tracking of Key Segment Metrics

Week 1 1x Shoppers 2x Repeat Buyers

3x Retained Customers Total

No. Customers who shopped in week 1,672 250 109 2,031% Customers who shopped in week 82% 12% 5% 100%Revenue from Segment $100,320 $17,500 $11,881 $129,701 % Revenue 77% 13% 9% 100% AOV (median) $54 $62 $85 $58 CLV (median) $55 $186 $759 $520

* Sample Data Only


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Beginning of life: • Multi-stage welcome

End of life: Win-Back• Treat subscribers differently depending on value• Only incentivise those we really want back

Other Data-Driven Comms:• Order inclusions• Gifts• Push messaging• Loyalty programIn between

• Deliver regular branded content• Segment by key drivers (gender, # of purchases, AOV)• Ramp up comms around predicted purchase period• Results overview

Data Driven Programs


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A Warm Welcome

43%8%

OpenRate

ClickRate

The welcome series was the most crucial automation to get live and right as there is no better time to sell yourself to a customer than at that first touch.

“”


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While the subject lines for the new subscriber and new customer emails vary, the body content does not. SurfStitch saw 1.6x the opens and 2x the clicks from employing this multi-email welcome series.


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Saving At-Risk and Disengaged Subscribers, Churning Customers.

72%DecreaseIn Churn over 6 month period


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The Logic of Winning Back Customers

1 month after Predicted Order Date

OR

4 months after most Recent Purchase Date if no Predicted Order Date

“AND” “OR” Logic in ExactTarget to create Win Back Segment

NA


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Win Back Email 1

4 mo after last purchase

OR

1 mo after predicted order date


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Win Back Email 2

8 mo after last purchase

OR



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Win Back Email 3

Sent 12 mo after last purchase to customers who have shopped 2+ times

OR



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40%

65%

HigherOpenRate

HigherClickRate


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What’s Next?


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Q&A

@windsorcircle @arjpearson

@surfstitch @tamarafalcke


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Ride the Wave!

1 2 3

Challenges & Goals• Actionable Data• Unique Journey• Retain Subscribers

& Customers

Digesting the Data• Monitor Key Metrics• Set Rules Based on

Analytics

Campaigns that Work• 4-Part Welcome• Post-Purchase• Data-Driven• Win-Back


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Take the after-session survey!

Take the Survey in the Connections 2014 Mobile App

Join the Conversation!

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$50StarbucksGift Card


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CUSTOMER JOURNEY SHOWCASE

MARKETING THOUGHT LEADERS

EMAIL MARKETING PRODUCT STRATEGY& ROADMAP

PERSONAL TRANSFORMATION

& GROWTH

SOCIAL MARKETING MOBILE & WEB MARKETING

DEVELOPERS HANDS-ON TRAINING

INDUSTRY TRENDSETTERS

CREATIVITY & INNOVATION

SALESFORCE FOR MARKETERS

ROUNDTABLES


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Post- Purchace Series Inspiration

#CNX14 - How Australian Retailer SurfStitch is Making Waves with Data-Drive Lifecycle Marketing

Documents

Transcript of #CNX14 - How Australian Retailer SurfStitch is Making Waves with Data-Drive Lifecycle Marketing