Key CCG Services

  • Database Analysis
  • Target Audience Profiling
  • Data Appending
  • Customer Segmentation

Situation

A pure play e-tailer of luggage, bags, backpacks, handbags and assorted travel accessories, eBags had a database containing over 250,000 customers and 1 million My eBags loyalty program members. The company’s challenge was to manage multiple email marketing communications to this broad audience, which represented varying degrees of overall value and profitability.

The company had also collected information from a growing number of noncustomers who had become My eBags members through a series of sweepstakes, contests and online promotions. Knowing that not all customers and prospects are created equal, eBags needed a way to selectively target individuals to receive communications that enhance the overall brand relationship.

Strategy

Using past purchase history — including number of purchases, cumulative expenditures, categories of products purchased, and date of most recent transaction — CCG segmented eBags customers into groups containing similar patterns of behavior. Each group was then associated with an email communications strategy that served to reinforce a desired action from customers within that particular segment.

Some of the resulting segments and their corresponding message themes included the following:

  • Sustain — Encourage continued performance without sacrificing margin erosion
  • Stimulate — Offer deeper discounts to stimulate increased trial
  • Invest — Invest added marketing resources to realize future upside potential
  • Develop — Nourish the customer experience in order to gain increased customer loyalty

Results

Rather than blanketing its customer franchise with the same generic message or offer, eBags was able to leverage these segments and message themes to develop a set of versioned communications. Each was highly relevant for its target customer segment, to stimulate the desired action.

This strategy helped to preserve, strengthen and enhance each customer’s relationship with the eBags brand.

“The analysis presented by CCG was crisp and clean. Based on the results, we were able to take immediate action and devise new strategies that helped boost our bottom line. With CCG’s help and analytical expertise, we have greater confidence that our email marketing communications are working.”

— Larry Martine, Director of Relationship Marketing, eBags