How to increase sales through thoughtful customer segmentation
Jan Jelínek, head of the marketing team at Alensa, sro, for the second time. Jan shared his experience that a loyal customer may not always be profitable and that a low frequency of purchase does not necessarily mean low creditworthiness. That is why Alensa started segmenting customers based on RFM analysis .
Alensa calculates the historical and estimated future value of a customer and flattens the resulting numbers into four segments (A, B, C, D), which it then works with differently in its e-mailing. For groups A and B, the goal is satisfaction, for C and D, profitability.
In what specific ways can you influence satisfaction and profitability ?
- Up-selling
- Different events
- Different discount amount
- A completely different product offering
- Notifying vs. backgrounding information
For the purposes of the evaluation, Alensa employment database focused on increasing profitability and moving unprofitable customers into profitable segments. And the results?
- 1.37% of customers from group D moved to A/B/C within one week.
- The loss base decreased by 12.4% in 3 months.
- Turnover per contact increased by 3.7%.
The email address will become the center of marketing this year. Jan Tichý, Google Certified Trainer and co-owner and Chief Product Officer at digital agency Taste , explained why. The era of unlimited tracking is coming to an end, as we await the blocking of third-party cookies. BUT – tracking via email will be allowed .
What does this mean in practice?
- Email registration will be the only salvation for remarketing.
- Companies will have to come up with real levers so united states america data that the customer has a reason to sign up (love brand, usefulness, originality).
- KPIs as we know them now will end, and performance will be measured by strengthening branding .
- Customer Data Platforms will become a “must have” product.
The changes mainly concern websites as such, but given that it will be desirable (even necessary) to require users to register using an email address , why not elementor Pro for wordpress, a guide to its use use them? After this “cookie apocalypse level 2”, even those who have resisted it so far will start emailing.
Jan advises: Don’t evaluate every mailing, but the long-term impact on the brand. Don’t solve performance campaigns only in the email tool or in GA4, but in combination and for each single user (1 user = 1 email + all other behavior). The PAVRD marketing framework can help you .
All’s well that ends well.
And that’s all from the E-mail Restart 2023 conference. We hope you gained new insights and drew inspiration. If that wasn’t enough for you, we recommend downloading the e-book 15 Email Campaigns That Sell . Thanks to it, you will learn how to turn a customer into a loyal customer . And that’s the main thing here.