Customer Retention Tactics From Lands’ End, Home Depot, ProFlowers
"They give offers to a customer based on knowing the customer — they know the skin color, hair color and makeup choices of the customer they're targeting," Horsley said. "So when they make a recommendation or an offer to them, the offer is authentic and relevant. That's how to create lifetime value — by giving customers something they can react to because it's relevant to them."
Personalization is also key to ProFlowers’ customer retention efforts, according to panelist Matthew Edstrom, senior director and head of marketing at the flower retailer.
For example, ProFlowers is always looking for unique data from third parties (e.g., birthdays of people in a given household). With this data, ProGlowers can "give a personalized birthday-themed email," Edstrom said. "We don't know the name of that person, we just know that there's a birthday occasion at some point in the future for the recipient of the email."
As for results, "we see better results from these campaigns where we have little pockets of unique data that's relevant," Edstrom noted.
Lands’ End is also investing in personalization, which is why the company spent part of 2014 and will again this year be working on a project it's calling the "single view of the customer."
"At Lands’ End, we have a lot of disparate databases," said Norpel. "But with this project, we're combining all of our data sources — Acxiom data, email preference center data, social media data, marketing channel data — so we can really see one view of the customer. We will know if the customer is a man or a woman, whether they shopped online, in-store or via our catalog, and what products they're interested in."
While this data will help Lands’ End's personalize the offers it sends its customers, Norpel said she's entering the project very slowly and cautiously. "Since I'm so personally sensitive to mispersonalization, there's a real concern for me that the data is right."