The Bouqs

Advanced segmentation increases total revenue on Mother’s Day by 45%

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Using Custora, Crocs tested several messages across four different churning customer segments: From customers just showing initial signs of “fading away,” to deeply attrited, or “lost” customers. Some “win back” messages included promotions, while others did not. Custora integrated with Crocs’ email marketing platform to enable automated A/B testing and email setup for the different segments and messages.

The Results: 10X ROI and 2X lift in revenue per user

The first round of testing discovered huge swaths of customers who were responsive to a relationship-based win-back messaging that did not include any promotional discount. These customers exhibited a lift of 2X in revenue per user compared to a control group that did not receive any email.

The tests also uncovered the optimal discount percentage for other customer segments, where offering a promotion resulted in positive ROI. The winning versions of these tests will be automated through email campaigns administered by Custora through Crocs’ email platform.

These campaigns have now been running for over four months, generating combined incremental revenue that represents a 10X ROI for Crocs.

Thrilled by the results, the team is now implementing the next phase in its quest to find the perfect promotional strategy. In this phase, Custora will create and maintain a “price insensitive” customer segment within Crocs’ email platform, to ensure these customers are not emailed promotions and discounts in any type of email campaigns, not just win-back.

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