In Part 1, we talked about the results of a recent 80/20 Analysis we conducted for a Revenue Conduit customer.
We found a number of customer segments that were all but invisible prior to the 80/20 analysis.
One big revelation was that only 10% of their customers accounted for 50% of revenues.
Another big revelation was that a full 85% of customers had only bought once.
When conducting 80/20 analysis, we always look for "low-hanging fruit" campaigns - campaigns that offer a relatively easy and immediate source of revenue and profit.
Campaigns that not only pay for your initial investment in Infusionsoft, Revenue Conduit and consulting but also provide an immediate ROI that can be further invested in even more profit-generating campaigns.
The biggest "low-hanging fruit" campaign was to get a second purchase from the customers that had only bought once. Knowing that the customers that had only bought once also differed based on the data of their last purchase, we also decided to further segment them into three groups - customers that last bought more than six months ago, customers that last bought between four to six months ago and customers that last bought within the last four months.
Each segment required their own messaging to ensure as many conversions as possible. The customers that last bought more than 6 months ago received messaging like "we want you back," while the customers that last bought within four to six months ago received messaging to the effect of "time to reorder," while the customers that had last bought within four months ago received messaging like "thanks for your recent order."
Our tertiary objective called for cleaning the list by sending the first email through Mailchimp, their previous marketing platform. Infusionsoft is very careful to maintain their email reputation, and the last thing we wanted was to generate a lot of bounces and spam complaints, given that the customer had not yet used Infusionsoft for email newsletters.
Here's the campaign we put in place:
As you can see, we added 7027 customers to the campaign on January 21st. The first sequence involved generating an export list for each segment. After about a week, we updated the Infusionsoft contacts to indicate who was clean (opened, clicked, or Did Not Open) and who was dirty (unsubscribed, bounced or made a spam complaint).
All the clean contacts then received additional 3 emails over the next week or so.
From January 21st through February 3rd, the campaign generated 302 sales, bringing in more than $30,000 in revenue with a roughly 75% profit margin. Customers that had not been marketed to since their initial purchase received four different emails, setting a standard for future marketing. And to top it off, we have cleaned the list and can now market through Infusionsoft without fear of running afoul of compliance.
Not too shabby.