As the New Year heaves into view, we've taken a step back to revisit some of our most popular blog posts published in 2017 - with a few of our favourites from elsewhere thrown in for good measure.
What is customer lifetime value?
We all stumble through life clutching onto the fuzzy memories of those pesky Pythagoras and algebraic theorems that haunted many a youth, and—with rare use cases in present day life—they normally end up getting filed and forgotten.
Enter customer lifetime value: the only equation you need to remember.
In ecommerce, CLV is the value a customer contributes to your business over their entire lifetime at your company.
The main methods of calculating CLV are split between historic and predictive CLV:
Historic CLV (Good indication of CLV)
Simply the sum of the gross profit from all historic purchases for an individual customer.
Predictive CLV (Great indication of CLV)
A predictive analysis of previous transaction history and various behavioural indicators which forecasts the lifetime value of an individual. As long as the equation is accurate, this value will become more accurate with every purchase and interaction.
Topics: Ecommerce metrics, Ecommerce marketing resources, Ecommerce customer retention, Customer lifecycle marketing, Ecommerce marketing strategy, Ecommerce marketing tips, artificial intelligence and marketing
Recommendation engines are difficult to get right (and not something you want to get wrong—unless you don’t mind ending up in Private Eye’s “Malgorithms” column).
But this doesn’t mean you should shun product recommendations altogether; on the contrary, in an industry dominated by personalisation, your brand should be investing more time and energy in making them accurate (and in no way annoying).
In this blog post, we’ve taken a look at seven different recommendation engines that can help you do just that. Whilst each one can be used in different ways for different emails (broadcast or automated), there are certain instances where specific engines lend themselves particularly well to specific campaigns; where this is the case, we’ve made a note using a ⭐ .
Topics: Ecommerce marketing resources, Ecommerce customer retention, Ecommerce personalisation, Ecommerce marketing strategy, Ecommerce marketing tips, AI in ecommerce marketing, product recommendation engines
Following the news that ecommerce powerhouse ASOS may soon have a bigger market value than British centenarian Marks & Spencer, we decided it was time to take a closer look at what the two retailers are up to with their email marketing.
Here are four things we found.
At just three years old, online womenswear brand Finery is leading the way when it comes to email marketing; often showing old-school, veteran brands how it’s done.
Just like its beautiful clothes, Finery’s emails are modern, stylish, inspiring and well-designed. They’re also highly relevant, thanks to the brand’s investment in different methods of personalisation—including customer lifecycle marketing (CLM).
To recap, CLM is an approach to marketing that takes its cue from where a customer is in their journey with your brand, ensuring the right message is sent to the right person at the right time.
In order to start using CLM, ecommerce marketers need to split their customer base into different lifecycle segments or ‘stages’. The nature of these segments will vary from business to business, but they tend to be split into: