Retailers shift their ad spending from TV, radio and print ads to digital ads.
That includes paid search ads and organic traffic.
Roughly 25% of first-time shoppers arrive at organic apparel retailer Criquet after conducting a Google search. That includes paid search ads and natural traffic that stem from shoppers looking for the unique types of products—organic preppy clothes—that Criquet specializes in, says Hobson Brown, cofounder of the site.
“Google is a big driver of our traffic, particularly for first-time purchases,” he says.
However, while the two-year-old retailer found that paid and natural search work well as customer acquisition channels, it recently decided it needed to find a better way to lure shoppers back to its site.
The retailer turned to marketing software and services vendor Windsor Circle to help it develop an e-mail marketing campaign that broke up its 3,000 consumer e-newsletter list into segments so that it could provide those shoppers with more tailored content.
The vendor analyzed Criquet’s customer relationship management software to examine shoppers’ purchase history and behaviors. It then broke Criquet’s customer base into three groups—frequent customers, those who hadn’t made a purchase in a while and those who had recently bought a handful of specific items on the site.
The retailer last month sent e-mails that offered $25 off their next purchase to each segment, with tailored messaging.
The messaging for the first group, the frequent customers, was essentially a thank-you note, says Brown. The e-mail had a 75% open rate and click-through rate of 32%. That compares to the site’s average open rate of 27% and click-through rate of 5%. “We had never really thanked those customers for being our best customers,” he says. “The message worked. It was the right message at the right time.”
The second group, who hadn’t made a purchase in a while, received an e-mail with the subject line “Get your cool back.” The e-mail had a 50% open rate, 18% click-through rate and 2% conversion rate. The e-mail turned lapsed customers into repeat buyers, he says.
The final group, those who had recently bought a handful of specific items on the site, received a message acknowledging the item the shopper bought, as well as offering items that go well with the purchase. The e-mails had a 66% open rate, a 14% click-through rate and more than a 1% conversion rate.
“It’s one thing to get shoppers to our site via Google,” says Brown. That’s a good first step. But tailoring the retailer’s messaging helps it build relationships with its customers, he says.