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Andrew Kamphuis
 
January 19, 2011 | Ecommerce, Marketing | Andrew Kamphuis

DTC Wine Symposium - CRM Demystified

Here are the slides and an overview of my 7-10 minute presentation at DTC Wine Symposium on CRM Demystified.  It was great to be a panelist along with Bronwyn Ney from Hall Wines and Susan Hanshaw from Innerarchitect.  Also thanks to Mary-Colleen Tinney for organizing everything.

My particular piece was on customer segmentation.

Slide #1 - Intro

Slide #2 - Segmentation

  • You capture names on your website and in your tasting room - you build your mailing list (hopefully you're not using a rolodex but some CRM software)
  • You know you get the best results when you send email regularly so you schedule your campaigns
  • But do you segment your lists?

Slide #3 - Why Segment?

  • Not all contacts are equal. You don't treat your family and friends the same. You don't treat your acquaintances the same. Why treat your contacts all the same?

Slide #4 - Why Segment?
There are a lot of reasons to segment, here are 3:

  1. Your response rate increases.
  2. You build deeper connections
  3. Untargeted email is spam  (not spam in the CAN SPAM legal sense of the word - but spam as in unwanted meat sense of the word)

Slide #5 - How Do Enterprises Segment?

Enterprises segment on RFM. Recency, Frequency, and Monetary Value. 

Recency - when was the last time this customer purchased?
Frequency - how often does this customer purchase?
Monetary Value - how much does this customer purchase?

Slide #6 - CaseStudy: WineTasting.com
A/B test from winetasting.com on a recent email targeting 'inactive' segement of their customers. (Inactive being customers who have not purchase in one year or more)

  • 13,722 received same email as Active Segment
  • 13,722 received custom tailored "Miss You" message

Slide #7-8 - CaseStudy: WineTasting.com
Custom tailored message outperformed regular message

  • Click thrus were 4.59% vs 0.68% (6.75 X greater)
  • 9X more orders
  • 28X more $$
  • 1/2 as many unsubscribers

Slide #9-11 - How can you segment your list?
 

  • Customer Type - Prospect vs FirstTime Purchaser vs Repeat Purchase vs Club Member
  • Active vs Non-Active Customer
  • Location - Local vs Out-of-Town Visitor

Slide #12 - Key To Success
Don't just segment your list, but custom tailor the message to specific target audience.

Slide #13 - Thanks
Special thanks to WineTasting.com and Kristina Palko for letting us use this case study.

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If you heard my talk, I would love your feedback.  Either shoot me an email or leave it in the comments below.

Comments

Ariel Ceja's Gravatar
 
Ariel Ceja
@ Jan 19, 2011 at 5:51 PM
Nice presentation. It further reinforces the notion that a tailored or custom message based on segmentation creates a stronger emotional connection with the client/customer. One must always know who he/she is selling to!

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