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How do you achieve new customers who are also loyal? Not easy when your products are literally all over the internet — sometimes even cheaper. However, with the right BI analysis, you can provide insight into the structure of the retention. You can then serve a customer so well that a close relationship is created. What's the secret to such a successful retention model?
We ask these questions to Lex van de Vliet, managing director of online lens specialistSightful. This e-commerce platform goes far beyond just a webshop for lenses. The idea is that people can always order their lenses here just before they need them. Something that is less simple than it seems at first glance.
“If you expect the customer to come back when the lens box is empty, you're wrong,” says Lex. “A lot of people don't use their lenses every day. So we mainly look at patterns that we recognize in the data to estimate what type of customer we are dealing with.”
Based on the first insights from the data patterns, Sightful creates a customer profile. The more likely a customer is to return, the more they invest in them. “So we're doing that step by step,” Lex emphasizes. The big challenge when it comes to lenses is that there are more than 200,000 different types and strengths. You don't want to have them all in stock. “What we're trying to do is reward people for returning to our shop. If they order more often, Sightful ensures that their lenses are in stock — that makes a huge difference in delivery time. Raising the service level is what we focus on when building a close customer relationship.”
The fast delivery time is one of the incentives for the customer, but the reminders at the right time also help, according to Lex. “Because people need new lenses so irregularly, it's also useful for them that we send reminders and personalize them.” Of course, Lex won't reveal the exact formula for the right reminder moment. “Not that there is an exact formula, but we have also developed a good thermometer for this, based on the data we have available.”
Launched about two years ago, Sightful is a subsidiary of Grandvision. However, no use was made of the (store) data of the large parent company. And that, according to Lex, is for good reason. “We started with zero data and zero customers, literally a blank slate. We look for early indicators and therefore do a very detailed analysis of the data we receive. We follow the journey from the first purchase to the second purchase and so on. We do that at the product level. We therefore always adjust the expectations and hypotheses. This is how we continuously invest in Customer Lifetime Value.”
Teams have been set up to carry out this constant process of analysis. “These teams work closely together, which is also very important for the success of our analyses,” says Lex. “All our data is protected and available anonymously in the cloud. This way, team members can always run analyses when necessary. We are seeing more and more patterns in the use of the site. Based on this, we always offer a higher level of service. Whichever channel you use to approach us, everything connects.”
When it comes to re-ordering, the holy grail of e-commerce comes into play, of course: subscription. However, Lex sees it differently. “With a subscription form, you can quickly do things wrong. You deliver too early, too late, or it feels too intrusive for the customer. I'm not saying this is always the case, is it? But it's something you have to do completely right, and not otherwise. We are currently focusing more on loyalty, by keeping extra service and stock up to date for returning customers. And by making it really super easy for people. With a reminder, we immediately send a link that allows you to complete the order with a few clicks. As a result, the control lies entirely with the customer.”
Through all the data and analyses, customers are still just people. Sightful also does everything in its power not to forget that, says Lex. “For example, we've trained all the people who work for us to answer the phone when they have customer questions. That's how we all keep in touch with the customer. We also always respond to online reviews — and as quickly as possible. In the meantime, we have all developed an obsession with providing good service. Customer contact is important, that's how you act out. That is perhaps the most important ingredient of a good retention model; the work of people, the real understanding of the customer.”
