#CNX14 - How Australian Retailer SurfStitch is Making Waves with Data-Drive Lifecycle Marketing
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SurfStitch, a Billabong company, is the leading Australian online surf retailer, selling over 350 brands. Tamara Falcke, Email Channel Manager and speaker extraordinaire, will share SurfStitch's comprehensive vision for data-driven lifecycle marketing. With the help of Windsor Circle's Retention Automation App at ExactTarget HubExchange, Tamara has undertaken a rigorous re-mapping of the customer experience, set up tests to evaluate automation best practices, and seen early wins from low-hanging fruit. Tamara Falcke is an email marketing manager, graphic designer and global branding wizard, with a wealth of experience in digital marketing. Andrew Pearson is a thought-leader in data-driven marketing, helping countless retailers delight their customers through data science, automation, and personalization.
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#CNX14 - How Australian Retailer SurfStitch is Making Waves with Data-Drive Lifecycle Marketing
- 1. Track: Industry Trendsetters #CNX14 #CNX14 Automating a Wave of Engagement Tamara Falcke, Email Channel Manager, SurfStitch Andrew Pearson, VP of Marketing, Windsor Circle
- 2. Track: Industry Trendsetters #CNX14 Automating a Wave of Engagement 40% Increase in Open Rates 65% Increase in Click Rates 72% Decrease in Churn
- 3. Track: Industry Trendsetters #CNX14 Tamara Falcke @tamarafalcke • From Queensland, Australia • Communication Design @ Griffith University • Email Channel Manager, SurfStitch • Largest Australian Boardsports & Fashion Pure-play Retailer with sights set on global domination • Data-driven decisions & customer-centric reasoning • Related to the inventor of Vegemite
- 4. Track: Industry Trendsetters #CNX14 Andrew Pearson @arjpearson • From Canberra, Australia • MBA from UNC Kenan-Flagler • VP of Marketing, Windsor Circle • Lives in Durham, NC, the “Center of the Retention Automation Universe” • Loves the power of data-science, automation, and creative • $6.25MM Series B • Vegemite really is amazing
- 5. Track: Industry Trendsetters #CNX14 2011 Best Pure Play Online Retailer 2011 Best Use of Technology 2012 Online Retailer of the Year 2012 Best Pure Play Online Retailer 2012 Best Site Optimization and Design 2014 Best Pure-Play Online Retailer!
- 6. Track: Industry Trendsetters #CNX14 “SurfStitch wins over its customers with stunning visual imagery, exceptional customer service and seamless fulfilment” - ORIAS Awards
- 7. Track: Industry Trendsetters #CNX14 Surf’s Up! 1 2 3 Challenges & Goals Digesting the Data Campaigns that Work
- 8. Track: Industry Trendsetters #CNX14 Surf’s Up! Prizes: 1) Download the Case Study: 2) Tweet an insight! windsorcircle.com/surf $250 SurfStitch Gift Card $100 Gift Card #CNX14 @WindsorCircle @SurfStitch @ExactTarget
- 9. Track: Industry Trendsetters #CNX14
- 10. Track: Industry Trendsetters #CNX14 Additional screenshots from website (2-3)
- 11. Track: Industry Trendsetters #CNX14 Additional screenshots from website (2-3)
- 12. Track: Industry Trendsetters #CNX14 Additional screenshots from website (2-3)
- 13. Track: Industry Trendsetters #CNX14 • Australia’s #1 Online Surf & Fashion Retailer • Global headquarters on the Gold Coast, Queensland • Recently bought back Billabong’s shareholdings • Acquired Swell.com, leading US Surf retailer, & announced consolidation of the global business • Winner of multiple ORIAS Awards
- 14. Track: Industry Trendsetters #CNX14 windsorcircle.com/surf
- 15. Track: Industry Trendsetters #CNX14 Data-Driven Marketing: Customer retention-oriented marketing approach using customer data, and especially customer behavior, to determine the targeting, timing, and content of marketing promotions. – Jim Novo, Author
- 16. Track: Industry Trendsetters #CNX14 Vision: Make data-led decisions to optimize every subscriber’s and customer’s email journey
- 17. Track: Industry Trendsetters #CNX14 Multi-Stage Automated Welcome
- 18. Track: Industry Trendsetters #CNX14 Predictive Win-Back for At-Risk Subscribers and Churning Customers
- 19. Track: Industry Trendsetters #CNX14 Making the Business Case for Automation • ROI of repeat buyers • Understanding size and opportunity of 1 time vs 2+ time purchasers. • Personalization of Journey
- 20. Track: Industry Trendsetters #CNX14 Getting the Right Technology in Play ExactTarget • Powerful marketing platform • Tools to segment, test, automate Windsor Circle • Reliable data integration • Meaningful data insights • Making the data actionable
- 21. Track: Industry Trendsetters #CNX14 Be Accountable • Make someone in charge of retention & automation • Map the lifecycle • Budget for retention • Set Goals & KPIs
- 22. Track: Industry Trendsetters #CNX14 How do you get started? By Getting Started! Start Small, Dream Big.
- 23. Track: Industry Trendsetters #CNX14 Keep it Simple • How do you do the “extra work” of setting up automation? • Get 1 automated program live each month • Gives time to evaluate results • Low hanging fruit: • Welcome program • Win back campaigns
- 24. Track: Industry Trendsetters #CNX14 #CNX14 Integration Data Science Automation Retention ROI
- 25. Track: Industry Trendsetters #CNX14 What % of your customers are only shopping once? How many times do you need them to shop before they become profitable?
- 26. Track: Industry Trendsetters #CNX14 Repeat Buyers are Highly Valuable
- 27. Track: Industry Trendsetters #CNX14 Key Segments in Windsor Circle Dashboard * Sample Data Only
- 28. Track: Industry Trendsetters #CNX14 Latency (Days Between Purchases) Average Days Between Purchases * Sample Data Only
- 29. Track: Industry Trendsetters #CNX14 Data updated nightly to custom fields or data extensions in ExactTarget Plus Custom, In-House, & Virtually Any Other Data Source
- 30. Track: Industry Trendsetters #CNX14 PLACEHOLDER SCREEN Pre-packaged Integrations & Enterprise Grade Data Feeds
- 31. Track: Industry Trendsetters #CNX14 Repeat Buyer Revenue, Latency, & CLV Q1 Q2 Q3 Q4 % Repeat customers (all time) 35% 34% 37% 38% % Revenue from repeat customers (all time) 70% 65% 70% 72% % Repeat customers shopping in 2014 50% 51% 52% 54% % Revenue from repeat customers 2014 71% 70% 71% 75% Median latency 2014 (repeat buyers) - days 64 66 67 68 Average latency 2014 (repeat buyers) - days 180 185 190 193 Median CLV 2014 (repeat customers) $230 $208 $210 $240 * Sample Data Only
- 32. Track: Industry Trendsetters #CNX14 Number and Percent by Key Segment Q1 Q2 Q3 Q4 New 1x Shoppers 12,400 14,821 13,880 31,789 New customers % 3% 4% 3% 7% Existing customers 380,100 392,500 407,321 421,201 Existing customers % 97% 96% 97% 93% Churning Customers 4,002 5,780 3,790 2,678 Churning Customers % 1% 1% 1% 1% Retained (3x) Customers 137,375 138,489 155,844 172,136 Retained (3x) Customers % 35% 34% 37% 38% Total customers 392,500 407,321 421,201 452,990 * Sample Data Only
- 33. Track: Industry Trendsetters #CNX14 Weekly Tracking of Key Segment Metrics Week 1 1x Shoppers 2x Repeat Buyers 3x Retained Customers Total No. Customers who shopped in week 1,672 250 109 2,031 % Customers who shopped in week 82% 12% 5% 100% Revenue from Segment $100,320 $17,500 $11,881 $129,701 % Revenue 77% 13% 9% 100% AOV (median) $54 $62 $85 $58 CLV (median) $55 $186 $759 $520 * Sample Data Only
- 34. Track: Industry Trendsetters #CNX14 Data Driven Programs Beginning of life: • Multi-stage welcome End of life: Win-Back • Treat subscribers differently depending on value • Only incentivise those we really want back Other Data-Driven Comms: • Order inclusions • Gifts • Push messaging In between • Loyalty program • Deliver regular branded content • Segment by key drivers (gender, # of purchases, AOV) • Ramp up comms around predicted purchase period • Results overview
- 35. Track: Industry Trendsetters #CNX14 A Warm Welcome The welcome series was the most crucial automation to get live and right as there is no better time to sell yourself to a customer than at that first touch. 43% 8% Open Rate Click Rate “ ”
- 36. Track: Industry Trendsetters #CNX14 While the subject lines for the new subscriber and new customer emails vary, the body content does not. SurfStitch saw 1.6x the opens and 2x the clicks from employing this multi-email welcome series.
- 37. Track: Industry Trendsetters #CNX14
- 38. Track: Industry Trendsetters #CNX14
- 39. Track: Industry Trendsetters #CNX14 Saving At-Risk and Disengaged Subscribers, Churning Customers. 72%Decrease In Churn over 6 month period
- 40. Track: Industry Trendsetters #CNX14
- 41. Track: Industry Trendsetters #CNX14 The Logic of Winning Back Customers 1 month after Predicted Order Date OR 4 months after most Recent Purchase Date if no Predicted Order Date NA “AND” “OR” Logic in ExactTarget to create Win Back Segment
- 42. Track: Industry Trendsetters #CNX14 Win Back Email 1 4 mo after last purchase OR 1 mo after predicted order date
- 43. Track: Industry Trendsetters #CNX14 Win Back Email 2 8 mo after last purchase OR 5 mo after predicted order date
- 44. Track: Industry Trendsetters #CNX14 Win Back Email 3 Sent 12 mo after last purchase to customers who have shopped 2+ times OR 9 mo after predicted order date
- 45. Track: Industry Trendsetters #CNX14 40% 65% Higher Open Rate Higher Click Rate
- 46. Track: Industry Trendsetters #CNX14 What’s Next?
- 47. Track: Industry Trendsetters #CNX14 Q&A @windsorcircle @arjpearson @surfstitch @tamarafalcke
- 48. Track: Industry Trendsetters #CNX14 Ride the Wave! 1 2 3 Challenges & Goals • Actionable Data • Unique Journey • Retain Subscribers & Customers Digesting the Data • Monitor Key Metrics • Set Rules Based on Analytics Campaigns that Work • 4-Part Welcome • Post-Purchase • Data-Driven • Win-Back
- 49. Track: Industry Trendsetters #CNX14 Take the after-session survey! Take the Survey in the Connections 2014 Mobile App Join the Conversation! #CNX14 $50 Starbucks Gift Card
- 50. Track: Industry Trendsetters #CNX14 CUSTOMER JOURNEY SHOWCASE MARKETING THOUGHT LEADERS EMAIL MARKETING PRODUCT STRATEGY & ROADMAP PERSONAL TRANSFORMATION & GROWTH SOCIAL MARKETING MOBILE & WEB MARKETING DEVELOPERS HANDS-ON TRAINING INDUSTRY TRENDSETTERS CREATIVITY & INNOVATION SALESFORCE FOR MARKETERS ROUNDTABLES
- 51. Track: Industry Trendsetters #CNX14
- 52. Track: Industry Trendsetters #CNX14 Post- Purchace Series Inspiration
Editor's Notes
- rigorous re-mapping of the customer experience, set up tests to evaluate automation best practices, and seen early wins from these automated programs
- TF: Introduction: From Queensland, Australia. Field studied & background in design. Worked as a marketer with globally renowned surf brand, Billabong, before taking on ownership of SurfStitch’s email channel in 2011. At SurfStitch, opened up data opportunities & soon turned my thinking to how data can be used to understand & become more relevant to customers. Strange but true - related to the inventor of Vegemite, so I for one am a Vegemite fan.
- AP
- AP – intro 13th floor / missed 2013 TF – talk about customer service focus business-wide. Business growing – greater reliance on data for personalised approach. Key to Online Retailer awards? Business-wide focus on customer service. Taking customer feedback & sharing across the entire business to make improvements. Every department – marketing, despatch, upper management. Though business size is growing, always a focus of SurfStitch to allow customers to speak to a friendly voice & offer personalised service to all customers. AP – weave into focus on data driven marketing
- With a mission to provide the best end-to-end online experience, learn how
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- AP: Question: here’s a screenshot of website, Tamara, why don’t you give us an overview of what you sell, who you sell to, overall online strategy. TF: over 600 youth fashion brands. International & boutique aus brands. Surf clothing & hardware. For millenials, men & women, coastal lifestyle to serious surfers. Blur between fashion & sport. About SurfStitch Pureplay online store which stocks over 600 leading youth fashion brands International & boutique Australian labels Largest selection of Surf clothing & hardware available in Australia
- TF: Market – millennials men & women Cater for coastal lifestyle to hard-core surfers Though surf is at our core, our product selection shows the undeniable blur between sport & fashion.
- Online strategy – make SurfStitch products accessible through all online touchpoints, with a focus on relevance & ROI. Example of google search. Performance boardshorts.
- Make sure landing pages & on-site experience is seamless for a potential customer.
- TF Global headquarters on the Gold Coast, Queensland, in the idyllic Burleigh Heads – haven for surfers living locally & visiting. From humble roots in Australia, starting as an Ebay store operating from a garden shed, SurfStitch launched a European website in 2011 & has recently acquired Swell.com, leading US Surf retailer - taking SurfStitch global.
- AP: Surfstitch case study Recent WC client what gave you to confidence to embark upon this data-driven journey, and to do a case study? TF: With the volume of data we have, overwhelming to manage it & enable use of it – we quickly realised WC offered the exact service we needed Confidence grew through early discussions, where it was clear our priorities were shared by WC & they were as enthusiastic to see us succeed as we were. Not to mention, nicest folks to deal with.
- TF: (read off this definition) AP: why does this definition resonate with you TF: Data-Driven Marketing - Customer retention-oriented marketing approach using customer data, and especially customer behaviour, to determine the targeting, timing, and content of marketing promotions. – Jim Novo I liked this definition – so aptly sums up my attitude towards data & the opportunities available to a marketer through customer data & behaviour – readily available to an online store.
- AP: you’ve had a very clear journey, would you elaborate? TF - Make data-led decisions to optimize every subscriber’s and customer’s email journey. Numbers are only as useful as the ability to understand them. This vision extends from data collection, to analysis, to testing & execution. In the email channel, these are actions we undertake daily in some way, shape or form.
- AP – brief intro Beginning of life - multi-stage welcome Why? Results overview
- AP – brief intro
- AP – turn over to TF Numbers speak volumes Extract the useful metrics that management can’t ignore ROI of repeat buyers vs. one time buyers – this stat brings to reality the value of those regularly engaging with your business as opposed to those who are not Understanding size and opportunity of 1 time vs 2+ time purchasers. Importance of giving these one or two-time buyers more reasons to return, discarding acquisition channels of low value prospects & giving advocates more value. Automation is achievable method for personalization of Journey for big & small businesses – time & resources used efficiently for maximum ROI
- TF: Need technology to bring data from multiple sources together & to get it in an actionable format – single customer view. ExactTarget Powerful marketing platform with ability to be flexible to customised solutions Tools to segment, test, automate & accurately extract results Windsor Circle Reliable data integration Meaningful data insights Allows for creation of single customer view - making the data actionable
- TF: Make someone in charge of retention & automation – without this being a priority within someone’s role, the extra initial work required to do data investigation & automations can get overlooked. Map the lifecycle – plan out which points in a customer journey you want to reach out to them at. Budget for retention – nothing is free. As with the first point, priority needs to be placed on investment in technology & resources to action data driven plans. Set Goals & KPIs – these will be crucial for justifying costs & making adjustments to plans which maximise return. Without setting benchmarks, you’ll be flying blind. You may need to try some things first to allow you to set informed KPIs.
- TF: Making a start – anywhere! My suggestion – start at the beginning. Assess how you are welcoming a new prospect & if there’s anything you can do to improve. Make the customer the centre – make sure you are welcoming them, making their life easier, or asking them why they no longer require your service. How do they want to hear from you?
- TF: How do you do the “extra work” of setting up automation? Get 1 automated program live each month Gives time to evaluate results Don’t start too deep – may not bring good ROI Detect the quickest wins for your business: Welcome program Win back campaigns AP: Library and books analogy
- AP turn over to TF Intro questions – ask of audience? TF: Curious to know if there are others in the room that are asking the same questions we were? What percentage of our customer base is only shopping once? How many times do we need them to shop before they become profitable? Why important to us – allow us to set clear objectives & measure the impact of activities. We found that repeat purchasers spend more & generate larger transactions. No-brainer – wanted more – wanted to encourage growth of segment.
- TF – We found that repeat purchasers spend more & generate larger transactions. No-brainer – wanted more – wanted to encourage growth of segment.
- TF Need to not only understand where you stand today, but evaluate periodically to ensure your actions across the business are driving improvements The segment overview is a great way to monitor change over time for yours segments. Has the Retained customers segment increased? Has latency from One Time Buyers to Two Time Buyers decreased? All of these questions and more can be answered with this one chart.
- TF When you know latency between purchases, you gain insight into general purchasing behavior. This can help inform when and how you deploy general promotions, win-back and replenishment campaigns. The goal is for latency to decrease as the number of purchases increases.
- AP
- AP
- AP / TF conversation AP: you’ve been methodical about tracking on, and reporting, on some key data TF: Trends we’re looking for in data - looking for significant shifts that may indicate problems, as well tracking trends that are emerging. Over a longer time period, can use data to assess shifts in key metrics like LTV, repeat purchaser rate, med latency. How effective acquisition channels & retention activities have been.
- TF: can assess the value of new customers over time & understand the changes the customer base over time.
- TF – weekly changes can show successes of certain activations or highlight problem areas that can be quickly addressed. Metrics such as revenue, AOV & conversion are useful for this.
- TF: My approach to lifecycle program is to put self in customer’s shoes – what would make sense to them at a particular stage? What would be helpful? Mapping out the customer life is useful to target areas & define plan. Beginning of life – in between & end. Extends beyond email – order inserts, gifts, push messaging & loyalty communications.
- AP intro TF talk about #s, importance, promo codes The welcome program was most important to us as we wanted to ensure customers felt connected to our brand from the very beginning. We want to make a good early impression, & the welcome program provided the perfect vehicle for that. The results have been very encouraging & showed that we were moving in the right direction for our audience. 43% open rate & 8% click-through across the program. As part of the welcome, we opted to offer subscribers a promo code, to create interest for new visitors, encourage 2nd purchase when welcoming new, first time customers
- TF: How we approached it – we wanted to take the opportunity to share our story & position our brand in the right light. We wanted to show we care about our customers in a clear & concise way. 4 part series so as to give each message the emphasis we believed it deserved. We also opted to tweak the wording for those opting in as a new subscriber vs. those opting in as a new customer.
- TF: Using ET dynamic content powered by WC data, we were able to include a coupon code reminder throughout the series, only to those who hadn’t yet redeemed it. Email sequence 1. Welcome & introduce promo code. First name personalisation & key statements about who we are as a brand. 2. Outline our services & how customers can reach help.
- TF: 3. What’s new? Get them excited by our latest campaign & direct them to key areas in the site. 4. Give opportunity for feedback.
- AP intro TF: For this program, we wanted to target individuals whose last purchase was outside the average latency period. We also chose to utilise the predicted order date powered by WC for those it was available for. Predicted order date is available for those who’ve made 2 or more orders.
- TF: this is for churning customers Keep subscriber stuff vague
- TF: Explain how/why use predicted vs (predicted order based on if they have shopped 2 or more times) Win back Marrying customer purchase data to email engagement Latency (days between purchase or since email opens/clicks)
- TF: Series 4 months after purchase - Serves as a personalised reminder to browse categories customer might be interested in.
- TF: 8 months – stronger wording & promo code incentive to shop again
- TF: 12 months – only sent to valuable customers – improved incentive & more direct wording.
- TF: Lift in metrics for personalised vs. normal & other benefits Overall, we’ve seen a marked lift in our data-driven emails over our regular campaigns with 40% lift in opens & 65% lift in clicks With this increased engagement, there are also benefits to deliverability & sender reputation due to relevant content, not to mention improved experience for our customers.
- TF: Continue to dig into the data to target other areas of the customer lifecycle & detect behaviours we want to encourage.
- AP
- 1 – T 2 – A 3 - T