How to use Insightful Data to Increase the Customer Lifetime Value

VIENNA • LONDON • MUNICH • ZURICH • BERLIN • PARIS • HONG KONG • MOSCOW • ISTANBUL • BEIJING • SINGAPORE • DUBAI

How to use Insightful Data to Increase Customer Lifetime Value

Alex Timlin: Director of Sales and Client Solutions, Emarsys, [email protected]

Maximising Customer Engagement

MaximisingCustomer Lifetime Value

Talk with us @Emarsys @ARTimlin#totallyengaged

Before we begin…

Emarsys Seminar Session

How to use Insightful Data to Increase the Customer Lifetime Value

Reaching your customers at multiple touch points throughout their customer journey significantly increases customer engagement and therefore the customer lifetime value. In this presentation Alex will highlight the business benefits of collating and analysing digital data to produce actionable intelligence.

Alex Timlin, Director Sales and Client Solutions, Emarsys

About Emarsys

Todays Agenda

• What is a “Customer Journey”?• What data to collect and how do I analyse it?• Why should I do it?

1 2 3 4

Traditional Customer Journey

Understanding the Journey with Web Analytics

Beginnings of Customer Journey analysis

• Our original analysis of the Customer Journey was to look at this basic process, identify the opportunities to improve that experience and drive conversions

• Our oldest digital channels Search, Email, Website Optimisation, Web Analytics all evolved around making this short process better

So what’s the problem?

Multi-channel customer acquisition

• Over time the number the number of channels we are using to drive purchases has exploded

• Search, Email, Display, Affiliates, Facebook Ads, Pinterest, YouTube, Direct Mail, Catalogues, Direct Mail, Call Centre etc.

• But we measure them all in the same way… conversions

• Customers Don’t Just buy from a single interaction or a single channel.

• But even attribution tools are designed to look at the ‘Purchase Path’ to a single purchase.

• They don’t look at Engagement and they don’t look at Repeat Purchases and Long Term Value

Some important statistics* – after more than 10 years in marketing optimisation

• Most eCommerce websites convert at less than 4%

• Less than 10% of your unique traffic will add something to a Shopping Cart

• 80% of the Purchasing Customers on your database have only ever made 1 purchase

Why you should be worried about these statistics?

Some important statistics* – after more than 10 years in marketing optimisation

• The cost of acquisition is going up.

• The average conversion rate in the US and Europe is going down.

• In a depressed economy the reason people are switching more to online is ‘price’.

We have two options

• Compete on price alone • Compete on Customer Experience

or

Understanding of the Customer Lifecycle and where your Customers are at each stage is an important first step:

Loyalty

Engagement

Discovery

What content fits

the customer?

4 key questions for successful customer experience

Who is the

customer?

When to reach

the customer?

How to reach

the customer?

Who is the

customer?

So what should we measure in terms of Customer Engagement?

• Date of ‘First Engagement’ – Registration/Account Creation/Purchase

• Channel used for first Registration – Lead Source• Website visit behaviour – date, session time, page

views, category views• Email behaviour – open/click• Mobile behaviour – App log-in, SMS click through• Device – mobile/tablet/desktop• Transactional History – RFM • Purchase Channel – Online/Instore/In-App

What happens when we understand the 4 questions:

Capture Engage

Convert Repeat

Retain

WHY?: treat your customers differently

Leads First-time Buyers

Active Buyers

Churning Customers

Hot & High Potential Lead

& Churning Gold Buyer

Would you treat them the same?

Stages

Revenue

• Male, 25 years old• Browsed website 3x in last 7

days• Interested in expensive suits &

coats HIGH eRFM POTENTIAL

• Female, 35 years old• Avg. Purchase value

£150• Last Purchase >180

days HIGH FM SCORE

Markus Reutner

Don’t mention the specific emarsys products, but their purpose only.

Smart Insight - customer intelligence

The customer lifecycle segmentation screen presents a snapshot of all your customers and their importance for your business.

CHURNING GOLD CUSTOMER


We can chose and save a segment from this screen – in this case all defecting gold customers.


In the Automation Center, blueprints can be created or modified in a drag-and-drop canvas. Here you can see a customer loyalty program.


The winback campaign and your website are enhanced by personalised product recommendations

Connect With Us

facebook.com/Emarsys

twitter.com/Emarsys

linkedin.com/company/Emarsys

plus.google.com/+Emarsys

emarsys.com

Win a copy of ‘The New Digital Age’ by Eric Schmidt

Visit us at Stand IW572


Active Buyers

StagesDefecting Customers

1

Higher conversion rate & quicker conversion

Revenue Welcome Mail Incentive in case of No Purchase

Conversion: 3.0%

Conversion: 19.1%

5 – WHEN: Case Study

Markus Reutner

put average stats from the web



Active Buyers


2

Increase revenue per customer & strenghten retention

Revenue

Conversion: 19.1%

First Time Buyer Feedback



Active Buyers


3

Winback churning

Revenue

Reactivation (90d without Visit)

Reactivation (180d of Inactivity)

Conversion: 7.9%Conversion: 9.2%

VIENNA • LONDON • MUNICH • ZURICH • BERLIN • PARIS • HONG KONG • MOSCOW • ISTANBUL • BEIJING • SINGAPORE • DUBAI

Thank You

Any Questions?

How to use Insightful Data to Increase the Customer Lifetime Value

Marketing

Transcript of How to use Insightful Data to Increase the Customer Lifetime Value