What does your company do and what’s your USP?
RedEye’s AI-driven Marketing Automation Hub helps B2C brands increase their income from email by an average of 38% in only their first year with our unique mix of data, people and technology.
Our goal, simply put, is to help marketers deliver amazing results, increasing conversion, revenue and customer lifetime value (CLTV).
We believe in the power of data to give brands a rich, single view of their customers and we believe our clients should be able to access and derive significant insights from their data. Our platform allows brands to plug in all their channels, engagement and customer behaviours and overlay predictive analytics, AI and machine learning.
We help brands to talk to their customers with a personal, relevant message at the position in their customer journey that will really make a difference: for example, converting a single purchaser to multi-purchaser or preventing a customer from churning.
Who are your customers in the UK and key customers elsewhere?
Our clients include Allbeauty, Travelodge, Interflora, Travis Perkins, Hotel Chocolat and Footasylum.
What do you see as challenges for the retail industry over the coming year?
With the current state of the marketplace retaining and growing a loyal customer base is absolutely key for retailers. We can all see the potential economic black clouds approaching and during times like these many retailers understandably see increases in single purchasers, shoppers focused on finding a bargain, driven by offers or discounts.
Additionally, retailers can see drops in multi-purchasers and VIPs and consequently increases in the number of churned customers. Most retailers report that it’s only at second purchase that customers actually start to become profitable when factoring in the cost of acquisition. I’d advise retailers to focus significant time and concentration specifically on the ‘single purchaser to multi-purchaser’ puzzle. At times like these increasing customer loyalty needs to be a serious focus.
What can RETAILERS do to increase loyalty from a marketing perspective?
Understanding the journey your customers go on to make a purchase helps you to increase the relevancy and pertinence of your communications. You want to talk to your customers with insight, using the wealth of data you hold to inform what you say, how you say it and when you say it. If you know your customer is a lunchtime website browser, who only orders when he’s got a code for free delivery and is repeatedly looking at yellow shorts on your website, your mind is already putting together the most effective communication to encourage that purchase.
Tailoring communications to reflect the behavioural data you hold on that customer shouldn’t be beyond our capabilities in this day and age. To do this most effectively you need all your data in one place. A single view of the customer is essential if you want your communications to be accurate, and most of all, effective.
Overlay predictive models on top of this and you begin to see not only what your customer’s done, but what they’re likely to do next. As we’re talking about loyalty, if a retailer could see a group of customers that showed a high likelihood of churning within the next couple of months. They could use this valuable information to reach out with a bespoke communication to try to entice them back.
The key with all of this is knowing. Knowing what they’ve done and are likely to do – you know your customers better than anyone and can talk to them in a way that resonates. What you need is the whole data picture of that customer to guide and inform you in deciding on the next best step.
Effective use of marketing automation combined with a single view of the customer, overlaid with predictive analytics ultimately drives up customer lifetime value. This should be a universally agreed goal.
There’s a lot of discussion around Customer Lifetime Value at the moment. How important do you think it is?
As a KPI we believe it’s really significant. A recent survey found that whilst 66% of organisations don’t use CLTV as a measure, 77% nevertheless feel that it’s important and should be a focus.
CLTV has relevance all the way through a business. As a board level metric it’s an easily understood measure of the business performance, indeed a measurement on which businesses can be valued.
It’s equally effective for the marketing team who can use it to both focus on truly meaningful strategies as well as measure marketing performance in a way that others can understand and appreciate. Reflecting the importance of retaining and growing loyal customers, 91% of companies report that investment in growing in CLTV is more profitable than investment in customer acquisition.
How does RedEye help its clients with all of this?
We don’t lob technology at people and then run quickly in the other direction. We are incredibly proud of the close relationships we have with our clients, really understanding their pain points and key areas they want to improve.
As you may have guessed we’re passionate about the power of data! We bring it all together, across all touchpoints and feed it into the single customer view that we create for our clients. We help our clients draw genuine, tangible insights to deliver relevant, perfectly-targeted communications through our Marketing Automation Hub that really drive value and increases in conversion, revenue and CLTV.
Case study: Allbeauty
allbeauty is an online retailer bringing customers the best in beauty and fragrances, at great prices, with great service.
allbeauty were looking for a supplier that would support them every step of the way to get the most out of their marketing automation investment. This was critical for allbeauty as they have a myriad of groups of customers that they need to stay relevant to.
allbeauty’s business was expanding rapidly and was looking to fuel engagement throughout the customer lifecycle whilst driving more revenue. They needed an advanced marketing automation platform to support this growth, without the technical support being sacrificed. To push their marketing forward allbeauty needed help delivering much more personalised and targeted communications, driven by data.
To support allbeauty in their growth and help them ensure they’re communicating in the most relevant way possible to their different groups of customers, they used Contour, which allowed them to use their data in a much more sophisticated way. The RedEye team were on hand to provide support in getting the most out of their new marketing automation platform. This was put in place right from the outset with allbeauty and RedEye working together to develop personalised and targeted customer communication programmes. Programmes that effectively communicate the brand and its offering consistently to its consumers across numerous markets.
The allbeauty communication plan took a two-pronged approach.
Firstly, looking at the behavioural email programme. RedEye’s in-house strategy team reviewed the customer journey to identify gaps in the allbeauty marketing automation strategy. Using Contour, allbeauty were able to introduce new email campaigns such as ‘Abandon Payday’ and ‘Abandon Category’ emails to ensure the whole customer journey is covered effectively.
Secondly, looking at allbeauty’s campaign emails, RedEye expanded allbeauty’s core segment of customers who purchased in the last 15 months to include prospect customers and identified lapsed customers who could be re-engaged. Their new investment in Contour means they can delve into their data to create highly targeted segmentation tiered down to brand purchasing level. Support from the team at RedEye means that their messages are now much more tailored and genuinely relevant to the customer, generating excellent results.
With a new Marketing Automation platform that allows allbeauty to utilise their data on a new level, and a team to help them make the most of it, the new behavioural email campaigns have delivered fantastic results. The ‘Abandon Payday’ email has seen a conversion rate of up to 40.9% and brought in an additional £19,885 in revenue over six months.
The ‘Abandon Category’ email has seen an open rate high of 38.7% and click through rate of 23%, bringing in an additional £154,000 of revenue over six months. These results are in addition to the abandon behavioural emails allbeauty already had live.
Looking at the campaign emails with much more targeted segmentation, they have seen a YoY increase in revenue of 44%, with open rates increasing from 7.8% to 12.8%. This is all down to the creation of segments of active purchasers, customers who have browsed the brand recently and customers who were lapsed purchasers.
This Company Spotlight was produced by eDelivery and sponsored by RedEye. Funding articles in this way allows us to explore topics and present relevant services and information that we believe our readers will find of interest.