RedEye Data Insight project leads to a 1022% ROI for Start-rite

    The Challenge

    Start-rite were looking to find a solution that would allow them to target specific groups of online customers, with tailored discounts to encourage more sales and increase their life time value. However, as a high end retailer, they needed a method of doing this that meant they didn’t have to run the risk of the codes being leaked online or shared

    The Solution

    To help Start-rite find a solution to their problem, RedEye carried out a data analysis project to identify RFM groups from Start-rite’s customer base, looking at their transactional data from the last five years. VIP groups through to lapsed and lapsing groups were identified along with the strategy and objectives to maximise their lifetime value. Based on this, RedEye created a unique merge field which allowed Start-rite to pull unique codes into their emails to incentivise lapsed or lapsing groups, this avoided the issue with using generic codes that can be shared and used multiple times.
     

    Start-rite were able to use these codes within email to target specific groups of customers, for example:
     

    • New customers who had made a purchase - to incentivise a second sale and increase the customer’s life time value

    • New customers who have not yet made a purchase - to incentivise the first sale

    • Customers who had become lapsed - to re-engage and encourage them to shop with Start-rite again
     

    Having set up a unique merge field for each of these groups, Start-rite were able to offer larger or smaller discounts where appropriate e.g. 15% for reactivation and 10% for welcome.

    The Results

    The results that each email campaign achieved are as follows:
     
    Welcome Purchased Email – From sending a specific welcome journey to customers who have already made a purchase, Start-rite have achieved a 5.59% conversion rate. The email helped to drive customers to make a second purchase within the next 70 days of signing up, increasing their customer’s life time value and encouraging these customers to become a repeat high value purchaser.

    Welcome Not Purchased Email – Driving the first purchase within the first 24 days of sign-up is essential to reach the customer when they are most engaged and looking to buy. With the unique code merge Start-rite have been able to offer an incentive to customers, which led to a conversion rate of 4.85%.
     
    Reactivation Email – From targeting 3,852 lapsing customers who were not engaging with the brand and hadn’t made a purchase for some time, Start-rite achieved a 27.53% conversation rate and a 1022% ROI from this email.
     
    Another great result from the project was that codes were not leaked or shared online as they were unique to each customer, also Start-rite did not lose revenue through offering its discounts to untargeted groups either.

    We were thrilled that RedEye were able to help us find a solution to stop our discount codes being shared online. The RFM analysis clearly helped us see which segments we needed to target with promotions and the unique code merge made this so simple for us to implement!

    ECommerce Marketing Manager

    Start-rite

    28%

    conversion rate achieved

    1022%

    ROI achieved

    91%

    of most successful marketers agree that marketing automation is “very important” to their success

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