Groupon says its focus is on the bottom line, rather than top-line growth.
Five-tier approach boosts average order by $1.44 and even more among top spenders.
A new five-tier segmented e-mail campaign drove conversion rates up by an average 35% across all segments at Internet floral company Proflowers.com. Using Cohorts, a personalization program from Denver-based marketing research firm Looking Glass, Proflowers.com identified key customer groups as well as those representing the biggest untapped opportunity for growth. By evaluating which segments bought multiple items, spent the most per order and for whom they were purchasing, Proflowers.com determined not only its primary targets, but also which offers and strategies were most effective with each group. The data also helped the e-retailer identify the partnership opportunities most likely to appeal to top buyer segments.
Using the segmentation data, the e-retailer created a multi-tiered e-mail campaign that targeted relevant subject lines, headers, offer language and even salutations to each group. In a test that compared the segmented campaign with results from a control group, not only were the customers who received the targeted marketing approach 35% more likely to convert on average across all segments, but conversion rates increased by 113% in one segment. Order size increased as well when consumers received targeted messages.. On average, order size was $1.44 higher across all segments than in the control group; one segment spent an average $3.12 more. “With the efficiencies of e-mail marketing campaign costs, the larger average order drops straight to Proflowers.com’s bottom line,” says Mike Fitzpatrick, director of new business development at Looking Glass.