windsor circle breakout session magento imagine 2014

Retention Marketing Automation Platform

Get More from YourExisting Customerssales@windsorcircle.com +1 (877) 848-4113

Retention Marketing Automation Platform

Get More from YourExisting Customers

Connect Magento To EmailRecover Abandoned CartsAutomate RetentionAnalyze CLV

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BREAKOUT SESSION / NIRVANNA TRACK:

Ziv KarmieCommerce Manager

CoffeeForLess.com

Andrew PearsonVP of Marketing

Windsor Circle, Inc.

Josh PenningtonOnline Operations

ManagerThe 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

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REPEAT BUYERS = 8% OF SITE VISITORS, BUT 41% OF REVENUE

Source: Adobe Loyal Shopper’s Report April 2013

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Retention, Perfectly Brewed

How CoffeeForLess makes $1MM+ a yearfrom Data-Driven Lifecycle Emails

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Retention, Perfectly Brewed

Working Person’s Store makes over $1MM a yearby personalizing product recommendation emails

Heavy DutyPersonalization

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$1MM A YEAR

Driving Real ROI From Retention Automation.

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3x the Email Open RatesWindsor 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

CONNECT MAGENTO TO YOUR EMAIL MARKETING SOFTWARE

Data updated continuously into custom fields or relational tables in your email software

and more

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$1MM A YEAR = 5-10% LIFT IN REVENUE

$100k/month, $1MM/year+ from Retention AutomationCoffeeForLess 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.

9 PILLARS OF RETENTION MARKETING AUTOMATIONWindsor 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

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9 PILLARS OF RETENTION AUTOMATION

1. Know Your Customers2. Get Connected & Welcome3. Thank Your Customers4. Amaze Your Best Customers5. Help Your Customers Enjoy More6. Save Your Churning Customers7. Create Evangelists8. Listen to Your Customers9. Acquire Retainable Customers

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COFFEEFORLESS.COM

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KNOW YOUR CUSTOMERSRetention Automation Pillar #1

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RETENTION METRICS

FOCUS ON REPEAT BUYERSTO GROW REVENUE

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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..

KEY SEGMENTS

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DATA DRIVES PERSONALIZED LIFECYCLE MARKETING

Joe – a first time shopper

CEO welcome email

1st product specific email

Receives product specific re-mail

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1

5

15

Post purchase thank you

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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

1352nd purchase$50 coffee

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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)

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2nd purchase$20 – tea, $75 - K-cups

90 3rd purchase$125– K-cups

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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

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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 Customers2.Get Connected: Permission to Retain 3.Thank Your Customers4.Amaze Your Best Customers5.Help Your Customers Enjoy More6.Save Your Churning Customers7.Create Evangelists8.Listen to Your Customers9.Acquire Retainable Customers

www.windsorcircle.com/9pillars

CoffeeForLess made over $500k in 6 months from key retention campaigns, above.

GET CONNECTEDRetention Automation Pillar #2

NEW CUSTOMER PROMPTS

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PUSH COUPONS

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SUBSCRIBERS, PREFERENCES

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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.

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WELCOME SUBSCRIBERS

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.

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WELCOME NEW CUSTOMERS

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.

THANK YOUR CUSTOMERSRetention Automation Pillar #3

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

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POST-PURCHASE ENGAGEMENT

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%

AMAZE YOUR BEST CUSTOMERSRetention Automation Pillar #4

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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

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REWARDING YOUR BEST

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%

HELP YOUR CUSTOMERS BUY MORE

Retention Automation Pillar #5

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HELPING CUSTOMERS BUY MORE

Coffee People emailSubject: Love Coffee People? We do too!

Decaf coffee emailSubject:

Love Decaf? We do too!

Keurig Email Subject:

Love Keurig? We do too!

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1,500 SKUS

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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.

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REPLENISHMENT RULES

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RECOMMEND THE RIGHT PRODUCT

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.

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HOT COMBOS

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%

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SEGMENTED OFFERED BASED ON PURCHASE HISTORY

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

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FLAME RESISTANT RE-ORDER

Total 6 month revenue

Andrew,

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Product Behavioral

PRODUCT & BEHAVIORAL DATA

SAVE YOUR CHURNING CUSTOMERS

Retention Automation Pillar #6

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UNDERSTANDING LATENCY

2nd Purchase 3rd Purchase 4th Purchase 5th Purchase

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149138

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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.

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CHURNING CUSTOMER LATENCY

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.

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CEO WIN-BACK

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

KEEPING CUSTOMERS FROM DISAPPEARING

Email 1: Sent 90 days after purchase dateSubject: Was it something we said?

Email 2: Sent 100 days after purchase dateSubject: Are we still welcome in your inbox?

Email 3: Sent 120 days after purchase dateSubject: Is this goodbye?

Results for win-back series

$200k+

Total 6 month revenue

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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-Backfor customers with 2 or less purchases

Predictive Win-Backfor customers with 3 or more purchases

Win-back campaign predicted results 3x shoppers

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PREDICTED WIN BACK RULES

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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.

CONTACT US

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www.WindsorCircle.com/1MM

CONNECT MAGENTOTO YOUR EMAIL MARKETING SOFTWARE

Data updated continuously into custom fields or relational tables in your email software

and more

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RETENTION AUTOMATION PLATFORM

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.

CONTACT WINDSOR CIRCLE

Speaker Contact

Information:Andrew Pearson, VP of MarketingAndrew@windsorcircle.com@arjpearson

Windsor Circle, Inc.111 E Chapel Hill StreetDurham, NC 27701(919) 822-2009www.windsorcircle.com@windsorcircle

THANK YOU FOR ATTENDING!

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