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Why brands should mine holiday data for new year performance
In the middle of the 2013 holiday rush, most retailers and marketers are focused on campaign performance and getting shoppers in the door. But, in the middle of the rush, brands need to also be thinking of the New Year - and how performance over the holidays might impact 2014's bottom line.
Kristina: Should retailers go into the holiday shopping season with a plan for the types of customer information they want to harvest?
Jerry Jao, CEO of Retention Science: The more information you can capture on your customers the more targeted and relevant you can be in your communication. Consumers leave a trail of important data every time they visit your site, open an email, make a purchase, or post about your brand. Google Analytics and Tag Manager are great for collecting the behavioral data like frequency of site visits, product page views, and length of time on site so that you can populate your messaging with the appropriate products, offers and content that will be most relevant. This information should be married with the sales data that is captured by your Ecommerce platform for a complete 360 degree profile on each individual.
Even if the functionality is currently not in place to take advantage of the data, collect it now so that it's available when needed.
Kristina: Consumers are smarter deal shoppers than they've ever been. How do you reach and impact this wiser consumer?
Jerry: Retailers need to analyze how each customer or subscriber reacts to different marketing campaigns. For example, a free shipping offer might be more appealing to some customers versus 10% or 15% off. Collecting and analyzing the different purchasing data based on coupon redemptions are very important and will help you understand which offers are more effective drivers for sales / conversion.
In addition, by understanding which deal and offer types that customers prefer (i.e. free shipping vs. dollars off), you can significantly increase the response rate to your marketing campaigns. For a greater impact on conversion, you might discover that a large portion of customers should not be sent direct mail but only receive SMS and email. Another segment might be better impacted with social marketing.
Kristina: Is there an ideal way to offer segmented or personalized campaigns based on data collected through the holiday months?
Jerry: The ideal way to set up your offer strategy would be to implement a Probability-to-Purchase model for each of your customers/subscribers. Once you've identified the segment with high to moderate purchasing intent you'll need to determine which of two strategies is best for your business. (and you can use Retention Science for this specific need, while most businesses will not be able to do this in-house). You can either maximize margins by reducing the discounts that the group will receive or maximize the number of conversions by delivering them the richest discounts.
For retailers without the resources to determine real-time purchasing intent, there are less sophisticated ways of establishing an offer strategy for this holiday season. Segmentation based on past purchase history can help to identify the level of discount needed to entice a conversion. For example, customers that have only made discounted purchases will probably require a richer offer over the holidays while a customer that purchases new arrivals will probably need a lesser offer to convert.
Image via Shutterstock
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