Senior Product Manager | Artificial Intelligence | Data-driven growth marketer
What does marketing automation mean? Are activities planned triggered on user-generated events. Simple and clear.
Events can be: click events, pageviews, user navigations, etc. All those events could be a hook to trigger a specific automated communication sent through different channel, such as email, push notification, browser push, app push notification or whatever.
Acquiring a customer has a cost (CAC), trying to take back customers who are, to date, inactive has a much lower cost. Just consider the following data:
So I need to put in place a tactic to "re-engage" them because they probably forgot us, or found more interesting products/services online from other competitors.
In order to deliver this tactics in the best possible way, it's really important to start from quantitative analysis, and never delegate to hypotheses.
The customer base analysis is basically important because it represents your business potential in terms of sustainability and growth.
Customer Base Segmentation (or clustering) could be analyzed using advanced machine learning algorithm that allow us to view segments with similar behaviors (K-Means algorithm).
For instance, I could use specific features in order to plot a specific customer segment which have purchased 2 times in the last 2 months a t-shirt and a pair of pants, and that are "most likely" looking for a shoe to match.
Information, needless to say, are a gold of mine for anyone with a profitable online business, today, this kind of analysis are reserved for only enterprise businesses.
Online companies wants to gain more understanding about their customers, to enhance better marketing strategies and uplift their business through data analysis.
A pretty straightforward solution is RFM analysis, that allows you to analyze important behaviours based on simple 3 dimensions: Recency, Frequency and Monetary.
Recency is when their last purchase was, how often they’ve purchased in the past (frequency), and how much they’ve spent overall (monetary) in a span timeframe. The output can be used to increase customer retention, customer engagement and targeted marketing.
Considering to have 11 customer segments (active, inactive, VIP, loyal, etc.) it's possible to import them into lists in a Marketing Automation tools for boosting sales.
Personally, I've been using Active Campaign for years, because it allows you to manage the different automation flows by segments or sub-segments, adding dynamic tags, create customer scoring and integrate third party data through their tracking code.
Actionable hints therefore provides use of a marketing automation product to roll out – at the bottom of this article, you find the link for copying the marketing automation flow that I'm going to explain.
Once you've analyzed your customer base, you can export the inactive ones that could be a very large pool of the database.
Two options depending on your data type:
What interests us most is that customers interact with us asking them a small commitment, that shows us there is still an interest. Once I get the click, I'm ready to tag him as partially active and push it into the flow.
It starts when you put tag "inactive" a contact, and:
send an email for feedback request
IF – It's not opened and/or clicked
THEN – Enter in a reminder sequence and qualify it as temporary-lost
ELSE (has clicked) – IF he has completed feedback process
THEN – Apply tag active and remove inactive
ELSE – Enter in a reminder sequence untile qualify it as temporary-lost
Note how are much longer the NO cases instead of affirmative one.
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