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The Low-Hanging Fruit of Ecommerce

September 30, 2014


ecommerce

The Low-Hanging
Fruit of Ecommerce

rare.io-smart-ecommerce-email-marketing-author-franco-varriano
rare.io-smart-ecommerce-email-marketing-author-Rob-lane

Written by Rob Lane.

1. Overview

When we engage with a new customer, it’s often one of the first questions they ask: “If you were running our store, what would you do first?”
In the majority of cases, our answer is the same: re-engage customers who have churned or gone idle! Even better, re-engage the past top spenders. These are previously active customers who have for some reason gone dormant or disappeared altogether. The reason why this has happened isn’t necessarily relevant—but the fact that it has gives you an easy segment to target with an offer. In many cases, your store has simply slipped their minds, and a nudge in the right direction can bring them back.

2. Reengaging Customers

Re-engaging these customers involves two steps. Firstly, you must clearly identify who they are. Secondly, you need to need to set up a campaign that is attractive to them.

Identifying your past top spenders is a very simple step for rare.io. The platform has already tracked the customer transaction history, so it’s just a matter of clicking a few icons to display the churned or idle customer.

total-customer

In the example above, out of a total customer set of over 45,200 customers, you can see that only 9,900 are active (have purchased something in the last six months). This represents around 22% of your customers. Pretty shocking!!!

When you look at the importance of different segments of customers from a customer lifetime value (CLV) perspective, the results are even more shocking.

The CLV for the entire customer set is $115.94 for this store.

Now let’s look at what happens if we segment this set to examine just the top spenders.

High-Value-Segment

For the top spenders, the CLV rises significantly to $176.64—and 73.9% of these most valuable customer are either idle or have churned. Think about what this means: 20,197 customers with an average value of $176.64 have disengaged or gone away.

3. So How Do You Get Them Back?

Step two is to set up an automated email campaign that is sent to customers who have churned or gone idle. The critical difference from most email campaigns is that these emails are personalized automatically. 

Before each email is sent, the platform will auto-populate each email with products that are the most compelling for each recipient. Not only do we not spam the entire customer database, upsetting other loyal customers, but every email promotes specific products that the individual customer will likely love.

This approach sends open rates and click-through rates sky-high and re-engages those churned or idle customers.


But don’t take our word for it. Set up your own campaign—or reach out to us for assistance—and harvest that low-hanging fruit!

4. Conclusion

Rare.io makes it easy to start using automated email campaigns for common challenges like: Welcome Series, Abandoned Carts, Order Follow-up emails and more! You can learn more about our powerful email marketing automation features here or go ahead and get started right away by using Rare.io for FREE.


Try Rare.io FREE!

And if you’re one of the thousands of merchants who are already using Rare’s Smart Email Marketing software and want to see how our Customer Success Team can work with your brand to grow your revenue – feel free to book a call at your convenience here.

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