Higher # of Orders from High-Value Leads
Higher average order value
Higher total order value
more tickets sold
Sports Illustrated Tickets (SI TIX) launched in June 2021 by differentiating itself from other ticket platforms with a flat fee for ticket purchases. Upon launching, they received waves of people to their website to check out local events. Once on the website, a pop-up collected email addresses and mobile numbers in exchange for various incentives. SI Tickets quickly amassed a large pool of email subscribers and sent everyone the same email and the same incentive to encourage a purchase. SI Tickets wanted to maximize its marketing budget by more accurately targeting a high-value audience that would stay longer and buy more.
The savviest eCommerce brands know they need to get more creative to improve margins and build relationships with customers.
Mass blasts just won't produce the same results anymore.
The brand estimated there were a small percentage of people in their email subscriber list that would spend exponentially more than the average ticket buyer, but they didn’t know who they were or how to target them.
There were also some people in their email subscriber list who will never buy regardless of intervention from the brand.
With only an email address, SI TIX had no idea how to optimize for an audience of people who would buy more and stay longer.
For most eCommerce brands, 20% of customers produce 80% of sales, which makes high-value customers 16 times more valuable than regular customers.
Given the tectonic shifts in the privacy landscape, exploiting the 80/20 rule by growing the number of high-value customers is the key to increasing profitability.
Powering segmentation using churn probability & growth potential (predicted LTV) allows companies to put their budget to its best use and work on converting customers who generate the biggest bang for the buck.
Ocurate’s insights limit SI TIX from marketing to everyone and instead fish in ponds with the biggest fish and where the fish are biting.
In one email campaign, SI Tickets ran an A/B test that targeted a high-value audience versus a general audience.
The results were extremely telling in the two campaigns tested and supported the belief that not all customers respond the same based on their value and where they are in their journey.
Lead conversion campaign: People who signed up for the brand’s email subscriber list, but have not made a purchase yet (leads)
Reactivation campaign: People who have not made a second purchase in the last six months (lapsed customers)