Check out the slideshare, with added notes, from Windsor Circle's standing room only Breakout Session at Magento Imagine 2014, a premier eCommerce conference in the US:
$1MM a Year from Retention Automation: Hear from 2 Magento Merchants who use Purchase Data to Retain Customers & Power Lifecycle Marketing
In the last 6 months, IR500 CoffeeForLess.com and WorkingPerson.com each made over $500K with retention automation powered by Windsor Circle. By integrating their Magento and email platforms and conducting ongoing, automated analysis of repeat buying metrics, these retailers were able to identify big opportunities to get more value from existing customers. Ziv and Josh will share insights from their successful Magento migrations, data integrations, and use of lifecycle marketing emails to welcome, thank, reward, recommend, replenish, and win back customers… automatically!
Speakers & Content From:
Ziv Karmi
eCommerce Manager
CoffeeForLess.com
Andrew Pearson
Vice President of Marketing
Windsor Circle
Josh Pennington
Online Operations Manager
The Working Person’s Store
Windsor Circle Breakout Session Magento Imagine 2014
1. Retention Marketing Automation Platform
Get More from Your
Existing Customerssales@windsorcircle.com +1 (877) 848-4113
Retention Marketing Automation Platform
Get More from Your
Existing Customers
3. BREAKOUT SESSION / NIRVANNA TRACK:
3
Ziv Karmi
eCommerce Manager
CoffeeForLess.com
Andrew Pearson
VP of Marketing
Windsor Circle, Inc.
Josh Pennington
Online Operations Manager
The Working Person’s Store
$1MM a Year from Retention Automation:
Hear from 2 Magento Merchants who use Purchase Data to
Retain Customers & Power Lifecycle Marketing
4. REPEAT BUYERS = 8% OF SITE VISITORS,
BUT 41% OF REVENUE
4
Source: Adobe Loyal Shopper’s Report April 2013
6. 6
Retention, Perfectly Brewed
Working Person’s Store
makes over $1MM a year
by personalizing product
recommendation emails
Heavy Duty
Personalization
8. 88
3x the
Email
Open
Rates
Windsor Circle’s data-
driven lifecycle emails
generated 207% higher
open rates than all other
emails for Working
Person during the same 6
month period.
Retention Automation Drives Results
10. $1MM A YEAR = 5-10% LIFT IN REVENUE
10
$100k/month, $1MM/year+ from Retention Automation
CoffeeForLess is an IR500 Retailer, reporting revenues of $19MM in the latest Top500 Guide. This additional $1MM a
year from data-driven email represents growth of over 5% to total revenue. This is particularly powerful because
they have already paid for the acquisition of those customers.
11. 9 PILLARS OF RETENTION
MARKETING AUTOMATION
Windsor Circle provides strategic guidance and best
practice coaching to retailers looking to build out a
retention marketing program. We call this the “9
Pillars”: windsorcircle.com/9pillars
12. 9 PILLARS OF RETENTION AUTOMATION
1. Know Your Customers
2. Get Connected & Welcome
3. Thank Your Customers
4. Amaze Your Best Customers
5. Help Your Customers Enjoy More
6. Save Your Churning Customers
7. Create Evangelists
8. Listen to Your Customers
9. Acquire Retainable Customers
12
17. FOCUS ON REPEAT BUYERS
TO GROW REVENUE
17
Most retailers start
here, with about
7% of their
customers as repeat
buyers
CoffeeForLess, after
1.5 years of
execution around the
9 pillars, using
Windsor Circle’s
software, has nearly
40% retention rates..
19. DATA DRIVES PERSONALIZED
LIFECYCLE MARKETING
19
Joe – a first time shopper
CEO welcome email
1st product specific email
Receives product specific re-mail
0
1
5
15
Post purchase thank you
17
1st purchase
$5 – filters, $15 – coffee
Days
Thank Help Retain Reward
No purchases
Win-back email1
Win-back email 2
Win-back email 3
90
100
120
135
2nd purchase
$50 coffee
20. 20
AUTOMATING RETENTION
Replenishment email (based on
median date for product)
Best customer email
(sent after trigger)
Replenishment email (based on
predicted order date for Sally)
40
47
49
2nd purchase
$20 – tea, $75 - K-cups
90 3rd purchase
$125– K-cups
135
140
215
4th purchase
$125– K-cups
Sally – a new shopper for her office
CEO welcome email
1st product specific email
Days
0
1
15
1st purchase
$22 – tea, $35 – K-cups
5 Post purchase thank you
Thank Help Retain Reward
Replenishment remail
21. 21
REAL ROI FROM RETENTION
Win back emails Over $200,000
Replenishments emails Over $150,000
Best customer emails Over $200,000
$500k+
Total
revenue
9 Pillars of Retention Automation
1.Know Your Customers
2.Get Connected: Permission to Retain
3.Thank Your Customers
4.Amaze Your Best Customers
5.Help Your Customers Enjoy More
6.Save Your Churning Customers
7.Create Evangelists
8.Listen to Your Customers
9.Acquire Retainable Customers
www.windsorcircle.com/9pillars
CoffeeForLess made over
$500k in 6 months from
key retention campaigns,
above.
26. SUBSCRIBERS, PREFERENCES
26
It’s important to collect email addresses
and other personal information from
site visitors. Turn them first into
subscribers, then into customers.
Birthdates are incredibly valuable, as
they allow retailers to send automated
birthday special offers, campaigns
which typically drive high engagement
and conversion.
27. WELCOME SUBSCRIBERS
27
Newsletter Subscription
Welcome Email
Includes a 10% discount
Subject line:
Thank You for
Subscribing!
Send new subscriber and new customer
welcome emails, and post-purchase thank
you emails, with the CEO as the from name,
from address, and signature. Getting an
initial email from the CEO helps build brand
loyalty, and drives great and honest
feedback. Set up a CEO email address that is
monitored by both CEO and customer
support.
28. WELCOME NEW CUSTOMERS
28
Welcome email 1
Subject: A Warm Welcome from the
CoffeeForLess CEO
Sent: immediately after first purchase
*Click rate is calculated as % of delivered emails.
Click rate does not include customers who manually
entered the promo code on the website.
30. THANKING FOR THE FIRST
PURCHASE…
Welcome email 2
Subject: Thank You For Your
Recent Purchase and Welcome
to the CoffeeForLess Family!
Sent: 14 days after initial purchase
31. POST-PURCHASE ENGAGEMENT
31
Triggered 21 days after first purchase.
Subject:
Thank you for your order
Post-purchase Loyalty rewards program.
Subject:
You almost have enough
points for a gift code!
Open rate: 47.4%
Click rate: 15%
Open rate: 45.1%
Click rate: 7%
Remail open rate: 25.9%
Remail click rate: 6.2%
34. REWARDING BEST CUSTOMERS
Best customer email criteria:
• Had not purchased in 75 days
• Had 3 or more orders
• Spent more than $500
Subject:
Best customers like you get 7% off
Results
$200k+
Total
6 month
revenue
35. REWARDING YOUR BEST
35
Best Customer Segment:
• Has purchased in the past 30 days
• Spent at least $235
• Has purchased more than once
Subject line:
You’re one of the best
Open rate: 41.5%
Click rate: 6.7%
38. HELPING CUSTOMERS BUY MORE
Coffee People email
Subject: Love Coffee
People? We do too!
Decaf coffee email
Subject:
Love Decaf? We do too!
Keurig Email
Subject:
Love Keurig? We do too!
40. 40
AUTOMATED REPLENISHMENT
$150k+
Total 6
month
revenue
Replenishment Results Subject:
Running out? We won’t let
that happen! And 5% off.
This is a smart image.
Using Windsor Circle
data your email can pull
in a different image for
each customer based
on their previous orders.
42. RECOMMEND THE RIGHT PRODUCT
42
Product recommendation emails pull in 5
related items based on what a customer
purchased last.
Related products are determined when
first setting up SKUs during integration.
Product images and links pulled in
automatically based on product purchased.
Subject:
They said I’m nuts, but I think
you are going to love this.
Open rate: 20.5%
Click rate: 3.5%
Smart field, pulls in the title of the
customer’s most recent purchase.
43. HOT COMBOS
43
The WC_Hot_Combo fields populated based
on purchase history for the last 90 days:
Two products are considered a “hot combo” if
they have been purchased X+ times,
together, in the past 90 days.
Total 6 month
revenue
Subject: They told me this was perfect
for you. I couldn’t agree more!
Code pulls in title of the hot combo item that
has not been purchased.
Coding to pull in customer’s name (if known).
Image & Link to Hot Combo recommendation
Code pulls in title of last purchased item
that is part of hot combo.
Open rate: 23.3%
Click rate: 4%
44. SEGMENTED OFFERED BASED ON
PURCHASE HISTORY
44
Seasonal, segmented single sends, based on past
products purchased.
WC_Product_History contains SKUS 1, 2, 3, etc.
Total 6 month
revenue
Subject line: varied
Open rate: 49%
Click rate: 12.7%
Revenue generated:
$275k
49. UNDERSTANDING LATENCY
49
2nd Purchase 3rd Purchase 4th Purchase 5th Purchase
180
149
138
76
Over time, repeat buyers take less time between subsequent purchases. This
should help you decide your email cadence. It is important to mix branding, how-
to, informative, and other non-promotional emails in between the optimal purchase
dates for each customer.
50. CHURNING CUSTOMER LATENCY
50
Median latency for churning customers is 80 days.
Churning Customers are people who used to purchase often, and spend a lot,
but have not returned recently. They are worth sending aggressive offers to
“win back”. Use median latency to determine optimal timing of the first win-
back email. In this case, CoffeeForLess chose 90 days.
51. CEO WIN-BACK
51
Email 1: Sent to churning customers 90
days after their last purchase
Email 2: Sent 180 after last purchase.
Subject:
Is this goodbye?
Email 1 Open Rate: 22%
Email 1 Click Rate: 3.1%
Email 2 Open Rate: 19%
Email 2 Click Rate: 2.7%
Revenue generated: $30k
52. KEEPING CUSTOMERS FROM
DISAPPEARING
Email 1: Sent 90 days after purchase date
Subject: Was it something we said?
Email 2: Sent 100 days after purchase date
Subject: Are we still welcome in your
inbox?
Email 3: Sent 120 days after purchase date
Subject: Is this goodbye?
Results for win-back series
$200k+
Total
6 month
revenue
53. 53
Win Back with Predictive Algorithm
5th order is placed
Email 1 sent 75 days after 5th order is
placed
If Sally does not place a 6th order,
email 2 sent 15 days after email 1
If Sally still does not place an order,
email 3 is sent 30 days after email 1
PREDICTING THE RIGHT TIME
TO WIN BACK
Static Win-Back
for customers with 2 or less purchases
Predictive Win-Back
for customers with 3 or more purchases
Win-back campaign predicted results 3x shoppers
55. WINDSORCIRCLE.COM/1MM
1. Know Your Customers: Analyze purchase history
2. Get Permission to Connect & Retain: Opt-in
campaign, lightbox email capture
3. Thank Your Customers: Welcome series for new
shoppers; Automated post-purchase conversion series; Last year’s
holiday shoppers
4. Amaze Your Best Customers: Early bird specials,
VIP rewards, personal thanks from CEO.
5. Help Your Customers Enjoy More: Triggered
replenishment & product recommendation emails.
6. Save Your Churning Customers: Win-back
campaigns based on LTV and recency.
7. Create Evangelists: Social offers, contests.
8. Listen to Your Customers: Ask for preferences,
reviews, recommendations.
9. Acquire Retainable Customers: Analyze revenue by
source and allocate spend accordingly.
55
59. RETENTION AUTOMATION
PLATFORM
59
Your Windsor Circle account
provides unprecedented
retail insights
Repeat Buyers have 4.8x the lifetime value
of one-time customers. Track your path to
customer loyalty & retention.
Powerful segmentation tools help you
leverage data to send the right message
to the right customer at the right time.
60. CONTACT WINDSOR CIRCLE
Speaker Contact Information:
Andrew Pearson, VP of Marketing
Andrew@windsorcircle.com
@arjpearson
Windsor Circle, Inc.
111 E Chapel Hill Street
Durham, NC 27701
(919) 822-2009
www.windsorcircle.com
@windsorcircle