The New Black in Retail: CLV
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Transcript of The New Black in Retail: CLV
The New Black in Retail: CLVMatt Williamson, CEO, Windsor Circle
Mary Cooney, AVP, eCommerce, L’Oreal
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
Agenda
• The New Black in Retail: CLV• 4 Steps Required to Increase CLV• Real Life Examples from L’Oreal• 9 Pillars of Retention Automation
Customer Lifetime Value (CLV) is defined as the total dollars flowing
from a customer over the entire relationship with that customer
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.
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%
Ok… But How do I Increase CLV?4 Phases to Increase CLV Using Data
(** Demand This of Your Technology Vendors **)
1. Knowledge
Begin with the End in Mind(Work Backwards from End Goals)
1. CLV, Retention Rates, Share of Wallet2. What Campaigns Should I Run?
3. What Do I Need to Know?4. What Data Do I Need?
5. Where Do I Get It?
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
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
This Ain’t Your Mother’s CRMTechnology has shifted the playing field.
You can do this better, faster, cheaper.
The Old Way
• Hard to reach• Expensive• Untrusted• Monopoly Breeds Complacence• Non-responsive• They are in control
The New Way
• Drivers Compete for Ratings• Friendly• Responsive
• Convenient• To Find• To Pay• To Rate
• Data Drives Better Experience
• You Are In Control
“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”
Old School Vs. New StyleOld School New Style
Cost $100K - $10M Capital Expenditure
$10K - $500K Software Subscription
Time 1-3 years Weeks - months
Ownership IT Marketing
Skillset Data Scientist, Programmer
Marketer, Strategist
Data Science Data Scientists Technology Platform
• Game has changed• CLV is the New Black• Technology has put the marketer in
control• #Start, #Test, #Scale, #Win