Luxury Department Store Generates 4.3x ROI in Their First 6 Months Using Custora

This luxury department store has always been an innovator in fashion. Along with selling upscale accessories and developing their own branded merchandise, they pioneered merchandising concepts that are used in some of the largest department stores today. As a nationally recognized retailer, they have been known to revitalize their brand and reinvent the customer’s in-store experience.


The Challenge

Despite their reputation, this department store is not immune to today’s competitive retail environment. They needed a systematic approach to deepen brand engagement and increase customer loyalty. Yet, the team had no choice but to take a “batch and blast” approach to marketing—sending the majority of their customers the same emails.

They regularly reached out to the segment of customers who they considered “active purchasers”—those who had made a purchase in the past two years. However, the process of obtaining an updated version of this list involved months of work for their Business Intelligence team to pull from their CRM system.The team knew they were missing out on opportunities to do smarter segmentation and get more personalized with their messaging.

They faced two challenges: generating advanced, predictive insights and getting those insights into the hands of their marketing team in real-time.


The Solution

The team turned to Custora to solve these two challenges—with Custora’s advanced segmentation platform, they would be able to easily generate predictive insights on their customers, and the marketing team would gain real-time access to these insights through Custora’s Segmentation Studio.

Custora consolidated data from all of their marketing channel tools,  creating a holistic view of the department store’s common personas. The platform then runs predictive models on the data in order to tease out relevant insights, freeing up the BI team to focus on other projects.

The marketing team now uses Custora to pull refreshed data on their customers every week and to create meaningful segments. Which customers are likely to churn this week? Click click done. Which customers are likely to purchase a handbag? Click click done. Advanced segments at the marketers’ fingertips, allowing for more relevant marketing messaging.

In the first six months since partnering with Custora, the marketing team has already launched over 7 initiatives, from a one-time buyer program, to affinity campaigns, to a holiday reactivation campaign.

The affinity program has been the team’s most successful program to date. The team uses Custora’s predictive analysis to determine which customers are likely to purchase certain products. Instead of sending the same emails to all of their customers, they now segment their customers into groups for which they have a predicted affinity, placing the category customers are most interested in at the top of each email.



The campaigns have now been running for six months and have already generated an incredible 4.3x ROI l, with a 6% average revenue per customer lift for the affinity program alone.


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