Welcome to Best of the MarTechBot, where I showcase my responses to prompts submitted by readers. As the first generative AI chatbot for marketing technology professionals, I am trained with MarTech content and ready to assist you with your queries. Today, I will be outlining a customer data platform (CDP) use case that targets lapsed customers, with a focus on how long the test should run and what KPIs should be reported on to show success.
As a marketing manager, your goal is to re-engage lapsed customers and drive repeat purchases. This use case can be summarized as follows:
1. Use case summary: To re-engage lapsed customers, personalized email campaigns with exclusive offers and incentives will be sent.
2. Business case: This use case will increase revenue by reactivating lapsed customers, improve customer retention, and drive repeat purchases.
To refine this summary, you can:
- Identify the criteria for defining a lapsed customer (e.g., no purchase in the last 6 months).
- Determine the frequency and content of email campaigns to be sent.
- Decide on the specific offers and incentives to be included in the campaigns.
- Define the exact duration of inactivity that qualifies a customer as lapsed.
- Determine the frequency of email campaigns and the number of emails to be sent.
- Specify the content, design and personalization elements of the emails.
- Decide on the timing and sequencing of the emails.
To execute this use case, you will need to retrieve customer data from the CDP, including purchase history, email engagement, and website behavior. Make sure the CDP can integrate with your email service provider (ESP) to send targeted emails.
To measure the success of this use case, you can track the reactivation rate of lapsed customers, the increase in revenue generated from reactivated customers, and the engagement metrics such as open rate and click-to-open rate of the email campaigns. It is also recommended to run the test for a sufficient period, typically between four to eight weeks, to gather statistically significant results.
If you're a CMO for a large auto insurance company, you can refine the prompt to gather more specific, actionable information:
"I'm a CMO for a large auto insurance company. Can you provide a step-by-step outline for a CDP use case that targets lapsed customers? How long should the test run? What KPIs should be reported on to show success? What marketing roles should help with this use case? Please keep answers simple."
In response, I would suggest the following:
Use case: Targeting lapsed customers:
As a CMO for a large auto insurance company, I want to re-engage lapsed customers to increase customer retention and revenue.
Business case:
- Increase revenue by converting lapsed customers into active policyholders.
- Improve customer service by providing personalized offers and incentives.
- Discover new cross-selling opportunities by understanding customer preferences and behavior.
- Create better reports on customer retention and re-engagement efforts.
Specific details:
- Identify lapsed customers based on defined criteria (e.g., customers who haven't renewed their policy in the last six months).
- Develop personalized offers and incentives to encourage lapsed customers to re-engage.
- Determine the optimal channels (e.g., email, direct mail, SMS) and timing for reaching out to lapsed customers.
- Implement A/B testing to evaluate the effectiveness of different messaging and offers.
- Measure the success of the campaign by tracking the following KPIs:
1. Conversion rate: The percentage of lapsed customers who renew their policy or take a desired action.
2. Revenue generated: The total revenue generated from re-engaged lapsed customers.
3. Customer retention: The percentage of lapsed customers who remain active policyholders after the campaign.
4. Engagement metrics: Open rates, click-through rates, and response rates to assess customer interest and interaction with the campaign.
Test Duration:
The test duration for targeting lapsed customers can vary depending on factors such as the size of the customer base and the frequency of communication. It is recommended to run the test for a minimum of 30 days to gather sufficient data and assess the effectiveness of the campaign.
Marketing roles involved:
To execute this use case, the following marketing roles should be involved:
1. CMO: Oversee the strategy and objectives of the campaign.
2. Marketing analyst: Analyze customer data, segment lapsed customers, and measure campaign performance.
3. CRM manager: Manage customer data within the CDP, create personalized offers, and execute the campaign.
4. Email marketing specialist: Design and deploy targeted email campaigns to reach lapsed customers.
5. Direct mail specialist: Coordinate the creation and delivery of personalized direct mail materials.
6. SMS marketing specialist: Develop and send targeted SMS messages to lapsed customers.
Remember, this is a simplified outline to get you started. For a more detailed implementation, please refer to the official Mar
Originally reported by Martech: https://martech.org/cdp-use-case-for-lapsed-customers-best-of-the-martechbot/
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