Using Offline Channels To Convert Leads And Encourage Repeat Purchases –

Using Offline Channels To Convert Leads And Encourage Repeat Purchases

I’ve used off and on for about 8 years now. From Birthdays and Anniversaries to Mother’s Day and Thank You gifts, I’m no stranger.

But out of all my purchases and interactions with them over the years, today was the first time I’ve received a phone call prompting me to order a Mother’s Day gift for loved ones. And while their name says it all (“1-800-Flowers”), I’ve predominantly considered them an internet company.

When I asked if this was a new follow-up method, the rep informed me that while they’ve been calling for anniversaries and birthdays for a couple years now, they just added Mother’s Day and a few other occasions. I proceeded to get my flowers at a phone-only price of 20% off.

How many different channels are you relying on to reach your prospects and customers? If only relying on online channels, you’re leaving a lot of money on the table.

I’ve been a big proponent of figuring out who your best customers are (by total spent, frequency, recency, and other metrics) and having your staff spend personal time on those folks. While 1-800-Flowers may have the means to put reps on their entire prospect and customer base, I’m pretty sure they have the technology to identify and automatically serve up the best customers first. After all, if they’re going to run out of time come Mother’s Day, I’m sure they’d rather risk not reaching the customers and prospects least likely to take action than the inverse.

In Infusionsoft, we have the ability to automate the creation of tasks that will appear on our staff’s individualized home page when they log in. These tasks can be conditioned on certain criteria. For me, since I have 50,000+ customers in my database, it is impossible and largely impractical to reach ALL of them by offline means like phone. So I’ll rely on my knowledge of RFM analysis (recency, frequency, monetary) to give me the customers most likely to respond favorably.

Recency answers the question, “how recently have they purchased?” Or if you want to extend the concept to prospects, “when’s the last time they’ve taken a favorable action (read report, watched video, clicked link)?” Frequency answers the question, “how often have they purchased?” Or if extended to prospects, “how often do they take favorable actions like login to free area of site, click links, return to website?” Lastly, monetary answers the question, “how much have they spent?” And if modifying analysis to include prospects, you could use duration of time spent (RFD) instead.

If I had to choose one of these areas, I’d go with recency because it trumps frequency and monetary (that’s why the order of terms is RFM; there’s a reason for that). But the power comes when you take the top customers from every category. So out of 50,000 customers, you could take the most recent 1,000 buyers, top 1,000 customers sorted by number of purchases, and top 1,000 customers sorted by amount spent (all figures that can be determined via Infusionsoft order reports).

This will give you 3,000 customers. Or will it?

It'll most likely give you less than 3,000 customers because some will be on all 3 lists. In other words, there will be duplicates. Some customers will have just purchased from you, but also among your top customers by frequency and monetary. And guess what? Those are the ones you want to contact FIRST! 

This is the preferred order:

  • check
    Customers on all 3 lists by recency, frequency, monetary
  • check
    Customers on 2 of 3 lists
    * Recency + Frequency
    * Recency + Monetary
    * Frequency + Monetary
  • check
    Customers on at least 1 list

Only after exhausting this list do you move on to contacting regular customers. And even then, you should go by recency (taking the ones that didn't make the top list but are nevertheless more recent than the other groups).

So thank 1-800-Flowers for this post. Hope it helps.

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