case study / Retail
4,000 Unit Retailer Increased ROI By 315% With Stirista
One of the largest franchise hair salon organizations in the country faced several issues with its acquisition, retention, and win-back marketing efforts and sought to increase incremental profitability growth across its 4,000 retail salons.
Objective
The franchise’s customer loyalty strategy is focused on implementing corporate and franchise integrated marketing programs that incrementally and profitably increase customer visits using targeted, and timely promotions across channels. But the organization needed relevant data to drive customer growth and engagement.. To help with this, Stirista developed a data-driven approach to targeting and segmentation, including the analysis and enhancement of customer data and behaviors.
Solutions
With a need for actionable data, Stirista built a digital platform that allowed participating salons to order geo-targeted, data-driven digital campaigns — in addition to complex campaigns across direct mail, social media, email and a mobile app. Analyzing the monthly target data sets, Stirista mined our massive consumer database to add email, phone number, and any missing connective tissue, like digital identifiers, name and postal address.
Our focus was directed at three key segments: customer acquisition, repeat visits, and win back. With our robust segmentation and customized offerings, each segment was assigned a different offer designed to motivate salon visits with just the right amount of discount. The concept, known as Intelligent Discounting, ensures that the offer is appropriate to the target’s life cycle stage. For example, the program avoids discounts for regular customers, while providing a modest discount to motivate infrequent visitors to come more often, and larger discounts to attract entirely new prospects and foster loyalty.
Prospects and customers were modeled using Stirista’s extensive capabilities that go beyond geographic and demographic information to include a deep analysis of a consumer’s interests, propensities, and likelihoods. The profiles were then scored and assigned to the creative, message, and channel that resonated with each customer or prospect’s life stage.
Results
With more than 85% of salons participating, insights from customer transactions, along with haircut preferences, we were able to segment and outreach to customers based upon visit frequency, personal haircut style, and salon proximity.
Customer acquisition saw a 2% incremental profitability growth and a 140% increase in ROI, repeat visits experienced a 4.2% growth and a 315% increase in ROI, and finally, win-back achieved a 3.8% growth and a 295% increase in ROI. Stirista helps clients understand the customer buying process, so that communications and offers happen at just the right time. The digital solution proved to be a sterling example of how data and multi-channel communications can be harnessed to support business partners and stimulate profitable growth.
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