Key results from the program include:
- Forty percent reduction in mobile subscriber acquisition costs for Rent the Runway; 53 percent increase in expected lifetime value of new customer acquisitions.
- Forty-five percent reduction in subscriber acquisition cost for SheKnows media; 107 percent predicted increase in pageviews per user in the next 30 days.
- Twenty-one percent increase in projected revenue per customer for Betabrand
"Improving the quality of acquisition programs is traditionally very labor intensive. It can take months, if not years, to identify the most effective way to segment existing customers in order to build a model for new customer acquisition that delivers long-term value," said Josh Gray, Director of Acquisition Marketing at Rent the Runway. "By working with Sailthru, we can automate insights development using vast troves of customer data to power new customer acquisition. With this program we've expanded our audience reach and the results have exceeded our top performing customers segment. We've now tripled our acquisition test spend."
Sailthru's technology is known by leading retailers and publishers for its advanced email marketing and cross-channel personalization capabilities. In addition to customer experience and campaign management tools, Sailthru's Prediction Manager capability offers marketers 13 out-of-the-box predictions, including probability of making a purchase, predicted pageviews generated and probability of opt-outing out of email. Predictions are made for every customer on a daily basis and take into consideration the complete history of customer and reader behaviors across email, web, mobile, social and offline channels.
Publishers can automatically predict which of their readers will generate significant pageviews -- a proxy for revenue per user -- and then segment these readers to build lookalike audiences in Facebook using Sailthru's one-click integration. Retailers predict which customers will purchase and how much they will spend to automate top customer segmentation and the acquisition of new, high value customers.
Sailthru's capabilities solve three key challenges faced by modern marketers:
- Advancing segmentation: marketers traditionally use time and labor-intensive frameworks such as recency-frequency-monetary ("RFM") modelling to identify top customers and other segments. With Sailthru, traditional segmentation and segmentation based on multiple predicted behaviors is achieved through a simple interface.
- Improving reach: Sailthru's predictions are proven to be more accurate than historical data-based modeling and to improve reach by identifying potential customers that traditional models miss. Overlap between Sailthru's predictions-based targeting and traditional segmentation-based targeting can be as little as 15 percent, allowing marketers significantly greater reach.
- Long-term value generation: conventional acquisition programs are evaluated based on the ability to drive short-term conversions and revenue without considering repeat purchases, site visits, propensity to churn and other retention-based metrics. With Sailthru, marketers can protect their acquisition investments by evaluating programs based on long-term, predicted value including one-year lifetime value.
"For too long, marketers have been focused on the short-term value of new customer wins. While these metrics are important, brands aren't recognizing the true context of customer lifetime value," said Neil Lustig, CEO of Sailthru. "By working with Facebook, we can empower marketers to leverage their downstream data to optimize new customer acquisitions and bring in patrons with longer term engagements and customer lifetime value. It's time for marketing teams to integrate their retention and acquisition efforts as the results from Rent the Runway, SheKnows Media and Betabrand prove that both can be improved when connected."
The Sailthru Customer Retention Cloudsm helps modern marketers at leading retail and media companies build deeper, longer-lasting relationships with their customers. Sailthru personalizes individual customer experiences across digital communication channels – in email, on a brand's website and in their mobile applications. Sailthru-powered 1:1 relationships with consumers help drive higher revenue, improve customer lifetime value and reduce churn for the world's most innovative publishers, including The Economist, Business Insider and Mashable, and the world's fastest growing ecommerce companies, including Rent The Runway, JustFab and Alex and Ani. Founded in 2008, Sailthru is headquartered in NYC, and backed by an exceptional group of investors, including Benchmark, RRE Ventures, DFJ Gotham, Scale Venture Partners, and AOL Ventures. For more information, please visit www.sailthru.com.
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