Retail CLV is the New Black
•
3 gefällt mir•98,263 views
This document discusses how calculating and increasing customer lifetime value (CLV) is important for retail success. It outlines 4 steps to increase CLV using customer data: 1) start with goals for CLV, retention rates, and share of wallet to determine data and campaign needs, 2) collect necessary customer data, 3) use data science to power predictive models, and 4) automate personalized campaigns. The presentation provides examples from L'Oreal of using technology to better understand customers and automate recommendations, replenishment, and rewards to increase CLV. Attendees will learn the business importance of CLV and how new technologies allow marketers more control over the customer experience.
Empfohlen
Empfohlen
Weitere ähnliche Inhalte
Was ist angesagt?
Was ist angesagt? (20)
Ähnlich wie Retail CLV is the New Black
Ähnlich wie Retail CLV is the New Black (20)
Mehr von Salesforce Marketing Cloud
Mehr von Salesforce Marketing Cloud (20)
Retail CLV is the New Black
- 1. The New Black in Retail: CLV Matt Williamson, CEO, Windsor Circle Mary Cooney, AVP, eCommerce, L’Oreal
- 2. Introductions Mary Cooney AVP Commerce L’Oreal Matt Williamson CEO Windsor Circle
- 3. By the end of this session, you will know… • How to Calculate Your CLV • How Retention Rates, CLV, and AOV Interact • 4 Steps Required to Grow CLV • Innovation is Putting Marketers in Control
- 4. Use Your CLV Field Manual!
- 5. Agenda • The New Black in Retail: CLV • 4 Steps Required to Increase CLV • Real Life Examples from L’Oreal • 9 Pillars of Retention Automation
- 6. The New Black in Retail: CLV
- 7. Customer Lifetime Value (CLV) is defined as the total dollars flowing from a customer over the entire relationship with that customer
- 8. Simple Math Purchase Assumed AOV Assumed CLV 1 81 81 2 81 162 3 81 243 4 81 324 5 81 405
- 9. What Actually Happens Purchase Actual AOV Actual CLV 1 81 81 2 86 167 3 85 252 4 101 353 5 104 457
- 10. This segment has been built and will be available in Salesforce within approximately 24 hours. This segment has been built and will be available in Salesforce within approximately 24 hours. This segment has been built and will be available in Salesforce within approximately 24 hours.
- 11. This is how AOV rises with Retention The Natural State of the Happy Customer
- 12. Existing Customers Are a Huge Source of Competitive Advantage
- 13. If You’re Not Driving CLV and Retention, You’re Losing • The State of Retailing Online 2015 (by NRF) • AOV for repeat customers - $199 • % of sales from repeat customers - 61% • Leading Retention Rates: • Bonobos – 50% (via NY Times) • Zappos – 75% (via econsultancy) • Amazon – upwards of 90%
- 14. Ok… But How do I Increase CLV? 4 Phases to Increase CLV Using Data (** Demand This of Your Technology Vendors **)
- 15. 1. Knowledge Begin with the End in Mind (Work Backwards from End Goals) 1. CLV, RetenQon Rates, Share of Wallet 2. What Campaigns Should I Run? 3. What Do I Need to Know? 4. What Data Do I Need? 5. Where Do I Get It?
- 16. 2. Data
- 17. 3. Science
- 18. 4. AutomaQon
- 19. Knowledge Science AutomaQon Data
- 20. #Winning Through Technology How Mary Is Using Technology to Increase CLV and Win at L’Oreal
- 24. • Add image of email
- 28. Valuable Data Fields • CLV (# of dollars) • Recency (most recent order) • Frequency (# of orders) • First order date • Purchase history, by: • Product • SKU • Store • Category • Interest • Last Purchase (same) • Address: city, state, zip • Predictive: • Replenishment • Recommendations • Substitutes • Complements • Churn Dates • Custom Fields • Loyalty Number • Birthday • Skin Type / Color
- 31. What’s Planned – Marketer is in Control • Predictive Data Science • Replenishment Dates • Churn Date • Cross-Sell Hair Styling <> Hair Care • Product Recommendations • Substitutes • Complements • Reward Best Customers
- 32. This Ain’t Your Mother’s CRM Technology has shifted the playing field. You can do this better, faster, cheaper.
- 33. The Old Way • Hard to reach • Expensive • Untrusted • Monopoly Breeds Complacence • Non-responsive • They are in control
- 34. The New Way • Drivers Compete for Ratings • Friendly • Responsive • Convenient • To Find • To Pay • To Rate • Data Drives Better Experience • You Are In Control
- 35. #Freedom
- 36. “5 vendors were brought in. No one had the offering that Windsor Circle had. The other vendors had people but they did not have the technology”
- 37. Old School Vs. New Style Old School New Style Cost $100K -‐ $10M Capital Expenditure $10K -‐ $500K SoYware SubscripQon Time 1-‐3 years Weeks -‐ months Ownership IT MarkeQng Skillset Data ScienQst, Programmer Marketer, Strategist Data Science Data ScienQsts Technology Pla]orm
- 38. • Game has changed • CLV is the New Black • Technology has put the marketer in control • #Start, #Test, #Scale, #Win
- 40. Questions? Visit us at booth #120 @M_D_Williamson Windsorcircle.com
- 41. Join Us For Dreamforce 2015 September 15-18, 2015 | San Francisco, CA