The first phase is the data build and creation of a single customer view, developing an understanding of the business and its objectives, and defining the strategy going forward. This can be conducted as a one-off project before moving on to the second phase or not.
Data can be taken and merged from multiple sources. In all cases, there will be a requirement to receive customer, order, order line and product data – certainly from e-commerce and any other order processing system that may take offline orders. There also may be other data sets that would be useful as part of this project for instance, you may have a loyalty programme / privilege club which would provide a very useful layer of customer information.
When confident with our interpretation of your data, the next steps include the development of a planning tool in order to demonstrate how changes in variables such as AOV, retention rates and new customer recruitment will affect turnover over the next 5+ years as the database grows and ages, factoring in lifetime value of customers, assuming all things remain equal (such as economic environment, competitive environment and product mix).
This is followed by simple RFM segmentation and growth of these segments and their responsiveness, irrespective of what marketing activity has been conducted.
These two reports provide a background for a discussion with you about what has happened over the years so that we can get an understanding of what may have changed at a particular point in time.
Utilising matchback rules will provide key campaign response for analysis. We provide a contribution metric allowing us to see which parts of a mailing a working better than others.
Having built the marketing history, we will then be able to look at lifetime value calculations, assessing what levels of retention are achieved, the value of customers recruited through different marketing sources, different channels, and perhaps different product categories.
Analysis and discussion around saturation levels for optimum sales and response for each campaign
We provide full and comprehensive reports, ensuring that we work cohesively with your business objectives and strategy which will form the framework for forward planning and next steps.