By now, we all understand that you must know your audience in order to be relevant in this world of digital marketing. But what marketing strategies are you exploring to personalize your message to your shoppers? Are you tailoring it to be based on your customer’s behavior to make sure they come back? Well you should if you want repeat customers!
Through answering these ten questions below, BM/D identified that 72% of one of our client’s customers were one-time buyers that we obviously wanted to become repeat customers. A recent analysis revealed that through our implementation of strategic tests, the client was able to decrease their percentage of one-time buyers by 4%, thus increasing their percentage of two-time buyers. In addition, the client was able to increase their percentage of three-time (or more) buyers by 20%!
Here are the ten questions that every commerce marketer should be asking themselves about their customers:
- How recently has your customer purchased from you?
- How frequently do your customers purchase from you?
- What is the monetary value of each of your customers?
- Based on purchase recency, what percentage of your customer base would you consider to be active shoppers versus lapsed customers?
- What percentage of your customer base are single purchasers and what percentage of your customer base are multi-purchasers?
- What is the monetary value of your top and bottom tiers of customers, and what percentage of your customer base falls into each of these tiers?
- For multi-purchasers, what is the average time between purchases?
- What is the lifetime value (LTV) of a single customer?
- Which retail channel(s) are your customers purchasing from (retail store, online)?
- Which marketing channel(s) are your customers purchasing from (email, PPC, affiliate, etc.)?
By leveraging your customer data to answer these ten questions, you can segment your customers and formulate marketing strategies that speak to your customer segments uniquely. Knowing what questions to ask, makes it easier to sort your data in ways that are actionable. A major piece of this is understanding who that audience is, and only through collection and analysis of the right data will that be revealed.
