The principle of customer retention might sound simple, but it’s often one of the most difficult things for a brand to do on its own. Optimove, founded in 2009 in Tel Aviv, bills itself as a science-first relationship marketing hub that implements a systematic approach to preparing, executing, measuring and optimizing a customer-relationship management (CRM) plan.
By combining predictive customer analytics, AI optimization technologies and a multichannel campaign execution engine, Optimove helps marketers deliver the right message via the right channel to every customer, every time. The result is happier, more loyal customers and significant increases in customer spend, engagement, retention and lifetime value.
“Because we can’t see every customer’s relationship with a brand, we have to make assumptions and we pay a cost of generalization,” said Optimove’s vice president of North America, Yoav Susz.
Working with over 300 customer-centric brands ranging from Family Dollar to Stitch Fix, Dollar Shave Club and Carbon38, Susz aims to help marketers drive measurable growth by autonomously transforming customer data into actionable insights, which then power thoughtful customer communications.
“The first part is data. The most essential thing that the marketer has to do is to have easy access to customer data, which isn’t always that easy,” said Susz.
The company spends an average of six weeks at the beginning studying a company’s data scheme.
“CRM is a world that should be driven by science. Only by treating every campaign as a scientific experience can you know if it’s making a difference or not,” he said.
“You also don’t need to think about the entire journey all the time,” he said, showing a map with each day of the week and each possible stage of retention a customer could be at on any given day. “We call this an infinite customer journey approach. We are making sure they get the best option at any given time by creating a system of prioritization based on what they like to buy.”
For example, someone who’s likely to buy at full price doesn’t need to be bombarded with discount offers. Someone who hasn’t made a purchase in over 90 days would require different marketing than someone who just made a purchase. And if it’s someone’s birthday, a better offer may be the priority.
“When you stop looking at a specific journey, you will see there are a ton of customers who aren’t getting coverage. Start identifying opportunities. The more access you have to data, the easier it is to create a feedback loop so that it’s a constant process of learning,” he advised.
He used the example of direct-to-consumer lingerie brand Adore Me. “At launch, they were running five types of campaigns daily. Today they are running over 75 and their revenue has increased 19 percent year over year. That didn’t happen overnight. They keep findings ways to test it little by little.”
Optimove also helps CRM practitioners quantify return on investment. “What is the uplift of clientele-ing? With the maternity brand Hatch, we were able to see whether calling up customers to invite them to the store was making an incremental difference or not,” Susz said, adding “CRM is a game of small wins. It’s a scientific playground and you will get as much as you put into it.”