Global Vertical Retailer of Optical and Hearing Aids

Omnichannel CRM marketing strategy based on customer lifetime value: Rapid customer acquisition and retention, measurable marketing activities and increased sales.

TFN

2020

CRM

Industry

Consumer Goods

Project Category

C1 - CRM

Website

Starting Point, Goals & Outcomes

OMNICHANNEL STRATEGY FOR NEW ONLINE STORE

With the launch of the first online store in 2020, a new digital sales channel was established for a renowned German consumer goods retailer within a very short time to complement the traditional store business and initial e-commerce offerings.

The main objective was to develop a long-term Omnichannel CRM Strategy. Building a modern marketing tech stack and enabling the internal teams resulted in a strong CRM unit that has continued to successfully build the online business.

The advantages of the solution approach:

- Cost transparency
- Measurable marketing activities
- Good controllability of all channels

This has created a strong basis for developing the e-commerce business into a relevant and fast-growing sales channel within the company.

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47 DATA RESOURCES

15 MARKETING CHANNELS

35 TFN EXPERTS

2 ATTRIBUTION SYSTEMS

Approach

Collaborate effectively with external experts and internal teams

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Heureka Labs' experienced AI experts from the TalentFormation Network used a data-driven and experimental approach to define clear performance indicators for quality, speed and cost. Through close collaboration between the TalentFormation team and Statista's internal development team, we were able to implement significant measures within four weeks:

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Simulate, analyze and optimize

In the first step, the CRM experts simulated the customer lifetime value, as there was no reliable data available, for example on repurchase behavior, return rates, contribution margins or the average order value per marketing channel.
They then gradually integrated real data into the calculation.
The team then continuously tested, analyzed and optimized various channels such as Google Shopping and Text Ads, Bing Shopping, email marketing and social advertising on Facebook and Instagram. All to continuously replace the simulation data with real data and optimize it iteratively.

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Implement Technologies

Various technologies and tools were used during the project, such as Klaviyo, Makaira, Google Analytics, OneTrust, Adtriba and Funnel.io.
These enable efficient product data supply, tracking, attribution and cost control via various online and offline marketing channels.

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Manage Data

The biggest challenges included data integration due to data protection guidelines, the complexity of the data sources, the heterogeneous data quality and the scarcity of human data engineering resources.

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Measure Results

The second phase of the project focused on analyzing marketing performance. The data basis and measurement methodology for the following three use cases were created:
Use case 1: Online marketing for online sales
Use case 2: Online marketing to generate offline sales
Use case 3: Omnichannel marketing to generate online and offline sales

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The TalentFormation Factor_

The TalentFormation experts have many years of experience in CRM-based marketing and the successful development of future-proof omnichannel marketing. The use of external experts enables a much faster implementation of marketing tech projects.
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Through enabling and internalization, know-how and project knowledge are transferred directly to the internal customer teams so that the company can continue to expand its success independently of TalentFormation.

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The Starting Point

STRONG STATIONARY RETAIL BUSINESS WITH FIRST E-COMMERCE OFFERINGS

The company operates several hundred stores across Germany and over 1,000 internationally. In response to the store closures during the first coronavirus lockdown, the retailer launched its first online store for its products within a very short time in June 2020 with the support of TalentFormation.

Up to this point, the customer did not have an independent e-commerce business. The website and digital marketing were mainly used to support sales in the stores.

The new online store presented the client with the task of quickly acquiring new customers by establishing new digital sales channels and targeted customer relationship management (CRM) - also in order to strengthen the brick-and-mortar business in the stores in the long term.

The Goal

GENERATE, BUILD AND EXPAND CUSTOMER RELATIONSHIPS ACROSS CHANNELS

The chosen Omnichannel CRM Strategy aimed not only to acquire customers quickly, but also to refinance the marketing expenditure within a freely definable period and to positively shape the value of the customer relationship in the long term.

Project goals:
- Attracting and retaining customers for online business and bricks-and-mortar retail
- Opening up new digital sales and marketing channels
- Control and measure omnichannel activities

In other words, it was about a sales model that does not focus on individual short-term transactions, but on the previous and expected customer value as a control basis.