A Customer Lifecycle Campaign is utilized to maintain and/or increase a customer’s engagement with the brand through multiple marketing strategies and offers at various times from their first interaction. Such types of campaigns are useful in creating personalized offers for different customers based on their recency. It also helps in reducing campaign costs while increasing customer retention and ROI which can be increased by choosing when to target and which customers to target based on their previous transaction.
- In the case of the OneTimers Lifecycle, the aim is to make them make a repeat transaction. Once they make a transaction during any point of the lifecycle, they move into the Repeaters Lifecycle. To find the touchpoints, we look at the behavior of the previous customers who have shopped with the brand before and have made at least 2 visits. The days taken between their first and second visit (latency) is taken as the reference and plotted in a graph (on the x-axis) with the corresponding number of customers (on the y-axis).
- The next step is to identify where the peaks are coming in the graph. These peaks correspond to the latency values which should be the ideal touchpoints for the OneTimers. The graph below clearly shows a peak at 180 days, thus becoming one of the touchpoints.
- Cmd 6 in the notebook has the latency graphs. There will be 6 graphs in the output as the main graph has been broken down into buckets of smaller time periods to make the reading of the graph and locating of the peaks easier (the above graph shows one of these graphs for the days between 150 and 240). Please keep in mind the values on the y-axis as they would be different for the 6 graphs.
- After getting some initial touchpoints from the graphs, make use of the table in cmd 7. This table has the data of the same customers divided into 10 percentile buckets based on latency. For each percentile, the mean, min, and max latency values are shown. The column with the mean values is the most useful.
- Combining the graph touchpoints with this table will give the final lifecycle touchpoints. The use of the table is to see how many percentiles of customers would come in the target range. It’s important to not choose touchpoints close to each other because contacting the ‘yet to transact’ customers too quickly again is not advisable. The final touchpoints found for a brand are shown below.
The final touchpoints are:
D is Day of Purchase.
Important points to note
- Generally, the OneTimers lifecycle should have more touchpoints than the Repeaters lifecycle since a customer is only part of this cycle once
- Don’t contact the customer too soon from the last touchpoint. Some brand knowledge is required here to determine the frequency of touchpoints. Ex: A supermarket brand will have a higher number of touchpoints with fewer days in between compared to an Apparel brand.
- The y-axis values for the graphs (Customer counts) need to be seen carefully while determining the peaks.
- Customer counts will reduce as the latency increases, but don’t just consider the first few peaks as the touchpoints since those customers are going to be coming back to shop without needing a push so no need to start targeting from very early. The best way is to first find the prominent peaks in the higher latencies and work backward from there.
- The first 1 or 2 touchpoints offers can simply be product offers or product catalog information based on their previous purchases. Then the % or flat amount discount offers can be given with the aggressiveness of offers increasing as days since the last transaction increases. The avg. ATV and ABS of the customers can be used to figure out the aggressiveness. DVS campaigns can be run for Lifecycle.
- Org_id of the brand
- Start Date and End Date Duration for which the notebook is to be run.
Format: yyyy-mm-dd. (example: 2020-01-16)
- Cmd 5: Latency Graphs.
- Cmd 6: Percentile table of Customers based on Latency.
Open your cluster-specific link provided for the Notebook.
|Lifecycle Campaign Touchpoints - OneTimers||India, SEA, EMEA|