Marketers Use CRM Segmentation To Drive Holiday Sales
Companies are using customer relationship management segmentation to re-engage lapsed customers and boost repeat purchases during the holiday season, according to MarTech. This strategy helps businesses reach past buyers with relevant messages and offers.
Original reporting · martech.org
Original: “How to use CRM segmentation to drive holiday repeat purchases”
Read “How to use CRM segmentation to drive holiday repeat purchases” at MarTech →
How this was written. The 5:45 Ops Desk wrote this article with a language model from MarTech’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from MarTech’s report
- Segmenting customer relationship management systems can help businesses re-engage lapsed customers and drive repeat purchases during the holiday season.
- The RFM model can be used to divide customers into groups based on recency, frequency, and monetary value.
- A multi-channel approach is necessary to successfully re-engage dormant customers, including email, paid social media, and digital video campaigns.
- Businesses should be cautious when emailing dormant customers to avoid deliverability issues.
- The holiday season provides a unique opportunity to win back lapsed customers and drive significant sales growth.
The holiday season presents an opportunity for businesses to reconnect with inactive customers and encourage repeat purchases. By segmenting their customer relationship management system, companies can target past buyers with tailored messages and promotions.
Deloitte forecasts a 4.0% to 4.8% increase in holiday sales this year, with online sales expected to rise 7.5% to 8.4%. This growth is driven by shoppers seeking deals and switching between brands, MarTech reported.
To effectively segment their customer base, businesses can use the RFM model, which considers recency, frequency, and monetary value. Recency is the most important factor, as recent customers are more likely to make another purchase.
Companies can divide their customer base into four groups based on recency, with each group receiving different messaging and offers. The two most recent groups should receive ongoing messaging, while lapsed customers require more targeted campaigns.
The holiday season provides a unique chance to re-engage dormant customers, who are more likely to be shopping and paying attention during this time. Winning back these customers can be challenging, but it can also lead to significant sales growth.
To successfully re-engage lapsed customers, businesses should use a multi-channel approach, sending several messages over a few weeks. This can include email, paid social media, and digital video campaigns, each tailored to the specific customer group.
When using email marketing, businesses should be cautious with dormant customers, as old email addresses can bounce or be marked as spam. To avoid deliverability issues, companies should check their email lists, keep batches small, and send emails before the Black Friday rush.
Questions and answers
What is the forecast for holiday sales growth this year?
Deloitte forecasts a 4.0% to 4.8% increase in holiday sales, with online sales expected to rise 7.5% to 8.4%.
How can businesses effectively segment their customer base?
Companies can use the RFM model, which considers recency, frequency, and monetary value, to divide their customer base into groups and tailor messaging and offers accordingly.
Why is the holiday season a good time to re-engage dormant customers?
The holiday season provides a unique chance to re-engage dormant customers, who are more likely to be shopping and paying attention during this time, making it easier to win them back and drive sales growth.
