Twice the amount of revenue from existing customers
after one month with minubo:
plentymarkets retailer, Anstoss24, shows how
successful customer retention works!
New clients rarely buy a second time
→ low repurchasing rates, low existing
Previous steps to achieving customer loyalty:
– one newsletter – once a month – every customer
– no differentiated, demand-oriented customer approach.
The Solution Approach
As the option of a demand-oriented customer approach has never been used by Anstoss24 before great potential exists to increasing the repurchasing rates, or rather the existing customer revenue. For example, by using segment-specified newsletters.
To develop suitable newsletters for individual customer groups, the customer groups and their previous purchasing behavior must be considered, as well as the synergies in the product assortment (e.g. between different product categories) and the concrete performance of individual products. Three key questions are defined as:
1. Understanding the repurchasing behavior of different customer groups to make future reactivation strategies useful: Do interdependencies between the product assortments exist? Are category A first-time buyers interested in category B? → Report 1 (displayed data was anonymized)
2. Creating profitable repurchases: Which concrete products can I promote? Where is not only my sales and revenue strong, but also margins high? → Report 2 and 3 (displayed data was anonymized)
3. Catching the right customer at the right time: Which clients are at the point in their buying cycle, where they are ready to purchase again? → Report 4 (displayed data was anonymized)
Report 1: Correlation between first-time purchase category and following purchase category
Analysis Goal: Product assortment synergies should be identified and used in a way so that every customer group receives a suitable offer from the product category that they are interested in.
Analysis: Patterns in repurchasing behaviors can be identified with the help of a correlation matrix. In which product category are first-time buyers of which category particularly interested in a following purchase?
Results: 3 repurchase patterns are determined.
– First-time buyers from category A most often repurchase in category D
– First-time buyers from category B most often repurchase in category B as well
– First-time buyers from category C most often repurchse in category A
As a result of this pattern, three newsletters can be designed with products from category D, B and A (see Report 2 and 3).
Report 2 and 3: Category-Bestseller according to revenue, sales and profit
Analysis Goal: After the top repurchase-categories were identified through report 1, the question is which concrete products within these categories show the best performance and can therefore be placed as a reactivation-teaser in the three newsletters.
Analysis: In the profitability-cluster report, products are classified into ABC-segment (calculated with sales and revenue – y-axis) and then divided into profitability groups (x-axis). Filtered, one by one, by product category, the corresponding products are divided into performance segments – calculated by the three metrics mentioned above: sales, revenue and profitability. By clicking on a segment, a product selection report is called up: the identified top-segment of the corresponding category can be viewed in detail (and as needed, filtered through more criteria).
– 6 products fall into the bestseller-segment of category D (newsletter 1)
– 5 products fall into the bestseller-segment of category B (newsletter 2)
– 8 products fall into the bestseller-segment of category A (newsletter 3)
The right products for the application in one of the three reactivation-newsletters have been identified!
Report 4: Average Repurchasing-Interval per First-Time Buyers Customer Group
Analysis Goal: Now, for every one of the three newsletters, the customers need to be found who fit the advertised categories according to Report 1 and are likely to repurchase in the present period.
Analysis: A cohort-analysis, filtered one by one by acquisitions-product category A, B and D (see Report 1), and shows typical repurchase-cycles: After which time interval will the first-time buyer group purchase again?
– First-time buyers from category A are, on average, ready to buy after 6 months after their first purchase
– First-time buyers from category B after 12 months
– First-time buyers from category C after 2 months
Based on the performed analysis, three segment-specific customer newsletters can be drafted. With the help of a customer-selection report, filtered by acquisitions-product category (see report 1) and the date of the first purchase (see report 4), the appropriate customer group can be identified in the last step – just one more click and the distribution list is instantly converted into a CSV file.
Following newsletters will be sent:
Until now, January was the worst month of the year for Anstoss24.
Now things are looking different: