How to efficiently reactivate buyers and drive sales

mini1Today I would like to show an easy way to create a segment of customers we want to reactivate as buyers. Every e-commerce is facing the same challenge – the customer retention. Unless you are selling Bugatti Veyron cars, you are probably always trying to transform one-time buyers into regular customers, isn’t that right?

The easiest way to reactivate customers and drive sales is finding past buyers that have been inactive for some time and convincing them to pursue a new transaction with an email offering a discount.

If you would like to activate buyers by sending a promo email with an extra discount code, it is important you segment out only those users who have used discounts before. This allows creating segments with higher ROI (lower sending volume with higher conversion).

The inactive buyers segment for a hypothetical online fashion retailer could consist of those who didn’t buy anything from the shop since some time ago and have probably been losing focus of your brand.

The target group:

  • didn’t perform any transaction during the last month (based on assumption an average customer buys apparel online twice a month, so one month without transaction qualifies the user for the reactivation program)
  • opened a newsletter, but did not click any link during the last month (an indicator that the regular email content from your brand is not driving new sales)
  • used a specific discount code (in this case 20% discount on all Nike shoes sent to the users between 1/1/2015 and 03/22/2015)
  • spent at least $100 while redeeming the “20% discount” coupon.

See below for an example segment definition. Please, note the use of the natural language clauses, instead of the SQL query, which improves usability for the marketer:

segment

That’s it. The segment targets users who have spent the specified amount of money in the past and in addition proved to be sensitive to discounts.

This use scenario is prospecting positive ROI changes by decreasing the cost of sending the campaign to the broader audience, while targeting only the users that most likely will convert once again.