Challenge
An FMCG company faced a significant issue: a high volume of one-time purchases and a subsequent low customer return rate. Given that consistent, regular purchases are critical for driving revenue and loyalty in the fast-moving goods sector (such as food and hygiene products), the company decided to implement automated reminder marketing campaigns to encourage habitual buying and improve retention.
Action
The company leveraged data analysis and automation to create a robust system of purchase reminders:
- Purchase Cycle Analysis: Using data collected by iPresso, the company analyzed purchase patterns to determine the typical buying cycles for various products. This allowed them to accurately predict when a customer would likely need to make their next purchase.
- Customer Segmentation: Customers were segmented based on their purchase history and product preferences. The marketing automation system specifically identified repeat buyers as the core audience for purchase reminder communications.
- Automated Campaign Setup in iPresso: Automatic purchase reminder campaigns were easily configured in iPresso. These campaigns were triggered based on specific purchase cycles and individual customer behavior. For example, a customer who purchased coffee would automatically receive an email and SMS reminder 30 days later prompting a repurchase.
- Personalized Marketing Communications: All reminder messages were heavily personalized based on the customer's previous purchases. The messages included:
- Recommendations for products frequently bought by the customer.
- Special offers and discounts on those specific products.
- Communication delivered through multiple channels (email, SMS, WhatsApp, push notifications) via iPresso.
Results
The automated, personalized reminder strategy delivered substantial gains in customer loyalty and sales metrics:
- Customer Return Rate: The number of returning customers increased significantly, resulting in a 35% increase in the return rate.
- Purchase Frequency: Regular reminders led to customers making more frequent purchases of the same products. The average purchase frequency per customer increased by 20%.
- Average Order Value (AOV): Personalized recommendations and offers successfully encouraged customers to add more items to their carts, contributing to a 15% increase in the average order value.
- Customer Retention: Automatic reminders played a key role in encouraging habitual buying, translating to a 25% increase in customer retention.
- Engagement: The personalized and timely nature of the reminders boosted customer engagement, evidenced by a higher number of opens and clicks on the messages, confirming their relevance and usefulness to the customers.
