How can I convert my subscribers into customers, turn my customers into great customers, and extend the lifetime value of my customers? In each of those cases, lifecycle marketing is key. Lifecycle marketing is about triggering marketing communications when you know they will have maximum impact—and also knowing who you shouldn’t focus your efforts on. If you’re part of an eCommerce company and are interested in building an automated customer acquisition and retention plan, then this presentation is for you. Mike Arsenault, Co-founder and CEO of Rejoiner, covers: --The basics of lifecycle email marketing for eCommerce --How to use a simple spreadsheet to identify customers with the highest potential ROI --How to predict when customers are about to defect from your company --How to measure the profitability of your triggered email program --Examples of lifecycle email campaigns that real eCommerce companies are using today

1. Data-Driven Lifecycle Email
for eCommerce
+
B R O U G H T T O Y O U B Y

2. Mike Arsenault
Co-founder, Rejoiner
mike@rejoiner.com
P R E S E N T E D B Y
H O S T E D B Y
Lauren Smith
Content Marketing Manager, Litmus
lauren@litmus.com
+

3. Presentation (30-40 Minutes)
• Customer Lifecycle Basics
• Scoring Your Customers
• Real World Examples
• Measuring Success
Q&A (10-15 Minutes)
Logistics
#DataDrivenEmail

4. Customer Lifecycle Marketing
#DataDrivenEmail

5. The eCommerce Customer Lifecycle
New customers
entering base
Existing/active customers Customers
declining in
shopping activity
Lapsed
customers
From: Gary Hawkins, Customer Intelligence
#DataDrivenEmail

6. Use customer data to predict the most important
and profitable moments to deliver marketing.
#DataDrivenEmail

7. “Customers are always in the process of changing
their behavior - either accelerating their relationship
with a company or terminating it.”
Jim Novo,
Drilling Down
#DataDrivenEmail

8. Opportunity Created by Friction Changes
New customers entering base Existing/active customers Declining in shopping activity Lapsed customers
From: Gary Hawkins, Customer Intelligence
Quote From: Jim Novo, Drilling Down
Rising Potential Value (falling
Falling Potential Value (rising
#DataDrivenEmail
“Friction is really about the likelihood a customer will
continue to do business with you.”

9. 20% of Your Customers Drive 80% of Profits
Importance of CLM for eCommerce
The Power-Law Distribution
Small Number of
Hyper Performers
Broad Range of
“Average Performers”
Small Number of
“Lower Performers”
Performance
Total Number of People
Josh Bersin, The Myth Of The Bell Curve: Look For The Hyper-Performers
#DataDrivenEmail

10. Importance of CLM for eCommerce
Top 1% Spend 30x More Than Average
#DataDrivenEmail

11. Importance of CLM for eCommerce
1x Buyer < CAC
#DataDrivenEmail

12. Measuring Your Customer Lifecycle
#DataDrivenEmail

13. Recency
Frequency
Monetary
RFM Scoring
#DataDrivenEmail

14. Recency: Recent purchasers are more likely buy again.
Frequency: More frequent purchasers are more likely
buy again than those who have purchased just once.
Monetary: Customers who have spent the most in total are
more likely to buy again.
RFM Scoring
#DataDrivenEmail

15. RFM Customer Scoring Example
More Resources:
Peter S. Fader and Bruce G.S. Hardie, Creating an RFM Summary Using Excel
http://www.brucehardie.com/notes/022/RFM_summary_in_Excel.pdf
Jim Novo, Drilling Down
http://www.jimnovo.com
#DataDrivenEmail

16. Identify High Opportunity Customers
Potential Value
CurrentValue
Low Potential Value,
High Current Value
Grow These Consumers
Low Potential Value,
Low Current Value
Should You Spend
Money Here?
High Potential Value,
High Current Value
Keep These Consumers
High Potential Value,
Low Current Value
Grow These Customers
Jim Novo, Drilling Down
#DataDrivenEmail

17. Four Campaigns to Start With
Cart Abandonment
First-Purchase
Welcome Series VIP Customers
Win Back
#DataDrivenEmail

18. Identify High Opportunity Customers
Potential Value
CurrentValue
Low Potential Value,
High Current Value
Low Potential Value,
Low Current Value
High Potential Value,
High Current Value
High Potential Value,
Low Current Value
Jim Novo, Drilling Down
#DataDrivenEmail
First-Purchase
Welcome Series
Cart Abandonment
VIP CustomersWin Back

19. Cart Abandonment
Why
• High Intent, High (R)
• Recover Lost Revenue
• Uncover Friction Points
• Qualitative Feedback
How
• Customer Service Opportunity
• Assume Mobile Consumption
• Try Humor
Goal: Convert high purchase intent customers and find
out why they abandoned (then fix it)
#DataDrivenEmail

20. Be brief and tell them why you’re emailing them
Give your customers way to contact you in case
they have questions or need help purchasing
Enable customers to complete their purchase
regardless of where they receive your emails
by regenerating their cart on click.
#DataDrivenEmail

21. A bit of urgency doesn’t hurt
Paws, and don’t forget to use a
sense of humor to engage customers
#DataDrivenEmail

22. Customer service moment!
#DataDrivenEmail

23. Why
• Drive 2nd Purchase
• Ask for Reviews
• Thank Customers
• Tell Your Story
First Purchase Welcome Series
Goal: Turn one-time purchasers into repeat purchasers
How
• Relational - Emphasize
what makes you different
• Make customers feel
confident about buying
decision
• Social - Engage on other
channels
#DataDrivenEmail

24. Say thank you
Show other products to encourage second purchase
Connect via social channels
#DataDrivenEmail

25. Tell your story
Promote social channels
Emphasize exclusive content shared via social
#DataDrivenEmail

26. VIP Customers
Why
• Upper right-hand corner
• Take care of VIPs
• Say thank you, genuine
appreciation
How
• Top 20%
• Rewards, service, appreciation
acknowledgement
• Doesn’t have to be a discount
• Note from CEO
Goal: Drive loyalty and make your best customers
feel appreciated
#DataDrivenEmail

27. Feels exclusive
And reward their loyalty, too
#DataDrivenEmail

28. Signed by CEO
Elegant and simple. Reminiscent
of a very personal note to customer
#DataDrivenEmail

29. Win Back
Why
• Engagement is
decelerating
• Re-engage customers
prior to defection
How
• Calculate latency to
determine tripwire
• Break out the offer
Goal: Nurture customers showing abnormal periods
of purchase inactivity
#DataDrivenEmail

30. Measure Latency
Distribution of Customer Latency (1st-2nd Purchase)
Numberof2ndTransactions
Days
0 100 200 300 400 500
0100200300400500
Day 50
#DataDrivenEmail

31. Deliver value outside of reminding
Break out your best offer
#DataDrivenEmail

32. Get your customers back in stores and online
#DataDrivenEmail

33. Discount Profitability
#DataDrivenEmail

34. Hold Out Tests
#DataDrivenEmail

35. Conclusion
You don’t need big data. Just a spreadsheet!
RFM and Latency calculations get you to 80%
Focus on low/high friction lifecycle stages first
Gut check using hold out groups
Engagement ≠ Profitability
#DataDrivenEmail

36. Thank You!
@rejoinerapp

37. Keep your best customers
Done-with-you campaigns & lifecycle email
software to send cart abandonment, welcome
series, win back and more.
rejoiner.com

38. Send your triggered emails with confidence
Preview your email in 40+ email clients and apps,
and verify that links, images, and tracking are
working as intended.
Free 14 day trial of Litmus. No credit card required.
Try Litmus free