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Flash Retail & Daily Deals Retailer Shifts From Mass Marketing To Focus On Individualised Customer Retention Programmes- Discount Vouchers' focus on retention deals out 28% uplift in purchases and 10% reduction in churn, signalling changing strategies in flash retail and daily deals market - NEW YORK, May 26, 2016 /PRNewswire/ -- Achieving long-term, profitable growth in the flash retail and discount market will prove difficult if players continue to focus on customer acquisition, according to an interview with Sucharita Mulpuru, VP and Principal Analyst at Forrester Research, in a Retail Touchpoints article[1]. While the business model can be highly profitable, Mulpuru believes that in order to reach revenue potential companies must shift from investing solely in short-term conversion programmes and find new ways to grow. Logo - http://photos.prnewswire.com/prnh/20160523/370891LOGO Exclusive deal providers face barriers such as high rates of disengagement, low purchase frequency and high customer churn. Email marketing is the primary driver of revenue from existing customers in this market, yet there are multiple opportunities for marketers to improve the effectiveness of email -- and other digital channels -- to increase repeat purchase rates, customer lifetime and customer lifetime value. First and foremost, flash retail and discount organisations must move away from batch-and-blast marketing and adopt modern approaches to email, web and mobile that leverage customer data to serve personalised experiences. UK online deal & offers provider Discount Vouchers is the first UK-based flash retailer and daily deals brand to invest in Sailthru's Customer Retention CloudSM. In doing so, the company gives itself significant competitive advantage by adopting a long-term approach to customer marketing and programme measurement by:
"Working with Sailthru has given us a clear view of our shoppers, what they like and dislike, so we can provide high-quality service and offers to every individual to continue to achieve meaningful, profitable growth. We have more than two million shoppers on our database, and with Sailthru we're able to automate marketing activity based on customer behaviours and find new ways to re-engage lapsed buyers. It's the powerful combination of segmentation, one-to-one personalisation and long-term measurement that makes Sailthru unique and why they are the partner we continue to choose when it comes to increasing value from retained customers." Success & ROI
In addition to measuring purchases and opt-out rates, measuring RPM is a particularly effective way to view and measure success for retention focused marketers as it normalises revenue growth against the growth of email lists. Neil Lustig, CEO, Sailthru, adds, "Discount Vouchers places a high value on customer retention and their shift from acquisition and short-term conversion focus is a sign that leaders in this market are maturing their approach to both customer engagement and profitability. Ecommerce is -- more and more -- a low margin model, making it mission critical that all retailers protect investments made in acquisition by strengthening their approach to retention. Never before have brands had the ability to retain individual customers at scale, but today we offer brands the ability to transform customer data into insights that automate relevant communications. I look forward to seeing Discount Vouchers continue to grow as a leader in this space." Long-term partnership About Sailthru – www.sailthru.com About DiscountVouchers.co.uk - http://www.discountvouchers.co.uk [1] Paraphrased from "Flash Sales And Daily Deals: A Passing Fad?", March 2014, RetailTouchpoints.com article (http://www.retailtouchpoints.com/features/industry-insights/flash-sales-and-daily-deals-a-passing-fad) |