plugging in: utilizing predictive analytics to increase aov & clv
TRANSCRIPT
Plugging In Using Predictive Analytics & Marketing to Drive AOV and CLV Increases
Speakers:
Jason Gazaway Jonathan Lessen Andrew Pearson Marketing & Branding Manager,
CablesAndKits Client Success Manager,
Windsor Circle VP of Marketing, Windsor Circle
Agenda About CablesAndKits
Predictive Analytics
Results: Increasing AOV & CLV
Questions
About CablesAndKits
Reliable and Fast Integration
Example Data Fields and Segments Customer Fields
- First Order Date - Purchase Last Order - Predictive Order Date - Coupon History - Hot Combo
Example Data Fields and Segments Customer Fields
- First Order Date - Purchase Last Order - Predictive Order Date - Coupon History - Hot Combo
Product Data - Product Title - Product Category - Replenish Date - Product Brand - Product SKU
Example Data Fields and Segments Customer Fields
- First Order Date - Purchase Last Order - Predictive Order Date - Coupon History - Hot Combo
Order Fields - Order Time - Ship Method - Coupon Codes - Discount Amount - Ship Zip
Product Data - Product Title - Product Category - Replenish Date - Product Brand - Product SKU
Example Data Fields and Segments Customer Fields
- First Order Date - Purchase Last Order - Predictive Order Date - Coupon History - Hot Combo
Order Fields - Order Time - Ship Method - Coupon Codes - Discount Amount - Ship Zip
Product Data - Product Title - Product Category - Replenish Date - Product Brand - Product SKU
Key Segments - Non Purchasers - 1x & 2x Time Purchasers - Best Customer - Win Back - Predictive Win Back
CablesAndKits’ Team
Jason Gazaway, Marketing & Branding Manager
Chris McCoy, E-Commerce Director
Shanyce Watkins, Marketing Coordinator
Jeremy Sloan, Marketing Graphic Designer
CablesAndKits Email Redesign
Implemented in Feb., 2014
CablesAndKits Email Redesign
Revamped in March, 2015
Implemented in Feb., 2014
Retention Automation Marketing Package (RAMP)
Agenda About CablesAndKits
Predictive Analytics
Results: Increasing AOV & CLV
Questions
Non-Purchase Series This 3-part Non Purchase Introduction Series is triggered using the following criteria:
• Email 1 – • Welcome • 8 hours since introduction
Non-Purchase Series This 3-part Non Purchase Introduction Series is triggered using the following criteria:
• Email 1 – • Welcome • 8 hours since introduction
• Email 2 – • Social Engagement • 4 days after introduction
Non-Purchase Series This 3-part Non Purchase Introduction Series is triggered using the following criteria:
• Email 1 – • Welcome • 8 hours since introduction
• Email 2 – • Social Engagement • 4 days after introduction
• Email 3 – • Value Add • 6 days after introduction
Segmentation and Revenue: All Customers
Segmentation and Revenue: 1x Purchasers
First Purchase Series This 2-part 1st Purchase Series is triggered using the following criteria:
• Email 1 – • Post purchase thank you • 3 days after 1st purchase
First Purchase Series This 2-part 1st Purchase Series is triggered using the following criteria:
• Email 1 – • Post purchase thank you • 3 days after 1st purchase
• Email 2 – • Brand awareness & social
engagement • 10 days after 1st purchase
Segmentation and Revenue: 2x Purchasers
2nd Purchase Series This 3-part 2nd Purchase Series is triggered using the following criteria:
• Email 1 – • Service • 3 days after 2nd purchase
2nd Purchase Series This 3-part 2nd Purchase Series is triggered using the following criteria:
• Email 1 – • Service • 3 days after 2nd purchase
• Email 2 – • Quality • 9 days after 2nd purchase
2nd Purchase Series This 3-part 2nd Purchase Series is triggered using the following criteria:
• Email 1 – • Service • 3 days after 2nd purchase
• Email 2 – • Quality • 9 days after 2nd purchase
• Email 3 – • Availability • 14 days after 2nd purchase
Segmentation and Revenue: 3+ Retained
Win Back Campaign This 3-part Win Back Campaign is triggered using the following criteria:
• Email 1 – • 120 days after most recent purchase
Win Back Campaign This 3-part Win Back Campaign is triggered using the following criteria:
• Email 1 – • 120 days after most recent purchase
• Email 2 – • 240 days after most recent purchase
Win Back Campaign This 3-part Win Back Campaign is triggered using the following criteria:
• Email 1 – • 120 days after most recent purchase
• Email 2 – • 240 days after most recent purchase
• Email 3 – • 360 days after most recent purchase
Predictive Win Back Series This 3-part Predictive Win-Back Series is triggered using the following criteria:
• Email 1 – • 45 days after predicted order date
Predictive Win Back Series This 3-part Predictive Win-Back Series is triggered using the following criteria:
• Email 1 – • 45 days after predicted order date
• Email 2 – • 90 days after predicted order date
Predictive Win Back Series This 3-part Predictive Win-Back Series is triggered using the following criteria:
• Email 1 – • 45 days after predicted order date
• Email 2 – • 90 days after predicted order date
• Email 3 – • 120 days after predicted order date
Emails Sent by Win Back Series’
Comparing the Win Back Series’ The Win Back Campaign targeted for 1x and 2x purchasers sent more than 3x the amount of emails to its respective, segmented list than did the Predictive Win Back Series
Comparing the Win Back Series’ Emails Sent by Win Back Series’ Revenue Generated by Win Back Series’
Revenue Generated by Win Back Series’
Comparing the Win Back Series’ The Predictive Win Back Series generated almost 7x more revenue since implementation
CablesAndKits generates 88% of their revenue from repeat customers
Open and Click Rates by Win Back Series’
Comparing the Win Back Series’ The Predictive Win Back Series is experiencing approximately 50% higher open rates with 3x the click rates
Baseline Metrics
Baseline Metrics Average Promotional: Open: 9.0% Click: .66%
Baseline Metrics
Win Back Segment
Non Purchase Segment
First Purchase Segment
Second Purchase Segment
Best Customer Segment
Average Promotional: Open: 9.0% Click: .66%
Agenda About CablesAndKits
Predictive Analytics
Results: Increasing AOV & CLV
Questions
AOV for the average purchaser increased 27%
Median Average AOV by Number of Purchases
Average Order Value
AOV for the average purchaser increased 27%
We hypothesize AOV to increase over time because repeat customers trust your brand more, spend more as they get comfortable with you, and discover more of your inventory that they are interested in
Median Average AOV by Number of Purchases
Average Order Value
Customer Lifetime Value CLV for the average purchaser increased 23%
Median Average CLV by Number of Purchases
Customer Lifetime Value CLV for the average purchaser increased 23%
Median Average CLV by Number of Purchases
CLV helps predict the future worth of a certain customer based on number of purchases. CablesAndKits’ data demonstrates the high need for retention, as repeat purchasers bring about a larger value, or portion of revenue, that cannot be forgone
Increased Open & Click Rates
14x ROI
$
$$$$$ $$$$$ $$$$
Implemented Windsor Circle’s Platform in February, 2014
Agenda About CablesAndKits
Predictive Analytics
Results: Increasing AOV & CLV
Questions
Content Divider Page 1 Brief description of content division
Windsor Circle: 1-877-848-4113 [email protected] WindsorCircle.com
CablesAndKits: 1-888-550-5619 CablesAndKits.com
Resources: • Download the CablesAndKits case study:
• www.WindsorCircle.com/CablesAndKits • Sign up for the CablesAndKits email list to stay in
touch with all future sales, promotions, and new product launches
We will send a link to the recording and the slideshare after the webinar.