The Modern Marketer Understanding data science and the multi-channel, multi-device shopper Ben Glynn Managing Director, Emarsys SEA @Emarsys
The challenges all modern retailers face • Identifying more contacts, collecting more data • Reaching more contacts • Utilizing machine learning and crowd wisdom • Blending offline and online into one unified experience • Matching experience to the channel • Applying automation and decision-making • Discovering the most profitable customers • Maximizing investment efforts • Utilizing intelligence to maximize lifetime value @Emarsys
Broken Marketing Experience! DATA AND CHANNEL SILOS Activity Focused Marketing
REASON? Broken Customer Experience! Display Store SMS Push Web Email Social
Broken Marketing Experience! DATA AND CHANNEL CONSOLIDATION OUTCOME FOCUSED STRATEGY
Case Example: Singapore Customer Data Benchmark How to Achieve Average Open Rate 16.7% Average Click Rate 4.7% Ave order size SGD 120 Profit Margin 20% ( SGD24) Cost of Acquisition SGD 40 Profit on first time purchase SGD -16.00 Website Conversion Rate 1.66% Email Conversion Rate 3.43% Number of repeat vs first time purchasers Unknown Churn Rate Unknown LTV Unknown
The leaky bucket
Frequency Results (3 years of data) FREQUENCY REVENUE 28. • Recurring buyers First Time Recurring First Time Recurring 96 spend over 5X more than first time buyers % on average 22% • Convert first time 78% buyers to recurring customers to 71. significantly improve 04 revenue %
Recency Analysis (3 years data) RECENCY REVENUE 18. 11 • Majority of customers % 3% 31.1 are either lost or starting to lose 7% • 81% of the revenue 43 over last 3 years % contributed from lost/almost lost customers 46 • The business must 50. Active % Active acquire more than they Defecting Defecting 52 lose, or drastically Inactive Inactive change their strategy % to a retention focus
Monetary Analysis (3 years data) 300,000 • Managing customers 250,000 by their spending status is essential , 200,000 particularly for those few high spenders. 150,000 • Customer spend is 100,000 varied - a small group (14.93%) of customers contribute over 68% 50,000 of the total revenue 0 Low Normal Silver Gold Platinum Contacts Revenue
Emarsys Recommendations Increasing 1 st Defecting Segment by to 2 nd Spending customer Status/Loyalty prevention Purchase rate 11
Understanding the customer lifecycle INCREASE CUSTOMER LIFETIME VALUE REVENUE Engage & Grow ACTIVE CUSTOMERS Increase 2 TIME retention and win back inactive customers 3 Convert 1 more leads LEADS FIRST-TIME BUYERS ACTIVE BUYERS DEFECTING CUSTOMERS @Emarsys
Example – ‘Outcome’ focused Abandoned Shopping Cart Increasing 1 st to 2 nd Purchase rate
Select Our First time Buyers Segment
Finally made a purchase! Engaging Jane Not responding … Not responding... Jane
Engaging the first time buyer, Jane Check out your items with the discount before it expires! Check out your items with the discount before it expires! Forget something? Check out your special offer. Buy $15 1 get 1 free! DISCOUNT slide to view message
Engaging Jane when she’s not 1 st time Your Black Dress is running out of stock. Make sure you bring it Check out your items back home! with the discount before it expires! $10 OFF $50 $10 DISCOUNT DISCOUNT
Engaging Jane with mobile push notification First time Normal Jane buyer Jane Don’t forget to checkout Forget something! Check out your welcome special your Lovely Black Dress! It’s running out of stock! offer. Buy 1 get 1 free! slide to view message slide to view message
Engaging Jane with email First time Normal Jane buyer Jane Your Black Dress is Check out your items running out of stock. Make with the discount sure you bring it back before it expires! home! $10 OFF
Engaging Jane on Facebook First time Normal Jane buyer Jane Black Dress is running Check out your items out of stock. Make sure with the discount you bring it back home! before it expires! $10 $15 DISCOUNT DISCOUNT
Results overtime: Revenue impact by purchase stage (Before) Close to 80% of all revenues from single purchase customers
Results overtime: Revenue impact by purchase stage (after) Now (50%+) revenues generated from repeat customers & increasing
01 Omnichannel personalization – automate and personalize @Emarsys #TrustTheMachine
The Emarsys Approach Retention CAPTURE DATA UNIFY ANALYZE PERSONALIZE ACROSS AUTOMATE CHANNELS UNIFIED DATA SCIENCE PROFILE BASED ACTIONABLE INTELLIGENCE Personalization Layer COLLECT TRANSFORM EXECUTE Conversion
Take action across customer lifecycle 1. Customer 2. Known active customer 3. Known inactive customer BIRTHDAY / ANNIVERSARY 4. Lost customer STATEMENTS LOYALTY OFFERS CROSS SELL / UP SELL Brand interaction 2 2 2 2 WELCOME BACK NEWSLETTERS EARLY DORMANCY NOTIFICATION 1 SURVEY 3 2 RE-ACTIVATION PROGRAM 1 1 3 INTRODUCTORY OFFERS 1 3 LOST CUSTOMER SURVEY / OFFERS WELCOME PROGRAM 1 4 Time
Post Store Purchase Purchased offline Send email Include treatment / recs / near offers Revenue attribution
Abandoned Store beacon enabled Exit detected Did not purchase Send email Include treatment / near offers Revenue attribution
Returned goods recovery Returned goods Send email include treatment / related recs / near offers Revenue attribution
A personalized customer experience: Decathlon @Emarsys #TrustTheMachine
The Solution Data Integration + Purchase Analysis + Customer Lifecycle execution + Recommendation technology @Emarsys #TrustTheMachine
Automated Lifecycle Programs Post Purchase Birthday Welcome Abandoned Cart Win Back First Time Buyer Abandoned Browse @Emarsys #TrustTheMachine
How does that look on the lifecycle? 1. Customer BIRTHDAY / ANNIVERSARY 2. Known active customer 3. Known inactive customer STATEMENTS LOYALTY OFFERS 4. Lost customer CROSS SELL / UP SELL Brand interaction 2 2 2 2 WELCOME BACK NEWSLETTERS EARLY DOMANCY NOTIFICATION 1 SURVEY 3 2 RE-ACTIVATION PROGRAM 1 1 3 INTRODUCTORY OFFERS 1 3 LOST CUSTOMER SURVEY / OFFERS WELCOME PROGRAM 1 4 Time
The result 50%+ 120%+ 748% Total website revenue Increase in revenue ROI after five weeks Through retention channels from repeat purchases of implementation @Emarsys #TrustTheMachine
The Modern Marketer Understanding data science and the multi-channel, multi-device shopper Ben Glynn Managing Director, Emarsys SEA @Emarsys
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