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great example promotional email – segmentation by customer lifetime value

Our Main 2 Segments

The two segments we use the most are our dog owners, cat owners and dog + cat owners (both.) For this specific campaign, we are merging dog owners with cat + dog owners and segmenting cat owners.

Cat Owner Discount

The email pictured is designed specificaly for cat owners after they have spent $750.

Dog Owner Discount

We offer a discount to dog owners after they have spent at least $400.

Why Offer Different Discounts to Customers?

  • Our cat owners typically spend more than our dog owners, and are less likely to worry about whether or not a product is on sale. Our cat owners also typically spend more money per transaction in-store and recent ecommerce patterns show they spend even MORE money when they are able to shop online.
  • Our dog owners are far more likely to make impulse buys when there is a discount code available or they have a coupon. They also have lower spend than cat owners per transaction on average online. However, their IN-STORE purchases are higher than they are for cats. We attribute this to the cost of gourmet dog food which owners typically buy in-store and a more extroverted cohort.

Spending Averages by Pet Owner Type

We have limited information regarding our own customers so our benchmarks come from external audience research which combines competitor insights with PetsRPals in-store customer base which spans across 10 brick and mortar locations in pet-friendly cities.

CAT OWNER SPENDING
  • Average Per Transaction (in-store): $48.14
  • Average Per Transaction (online): $89.23
  • Purchase Frequency (online): 2x/mo
  • Average Total Discounts Per Customer Per Year (online + in-store): $107
  • Average Per Year (online): $2141.52
  • Maximum LTV (online): $32,122
DOG OWNER SPENDING
  • Average Per Transaction (in-store): $78.23
  • Average Per Transaction (online): $54.88
  • Purchase Frequency: 2x/mo
  • Average Per Year (online): $1317.12
  • Average Total Discounts Per Customer Per Year (online + in-store): $307
  • Maximum LTV (online): $13,171.20

Once a customer reaches this threshold they are sent an email similar to this one, recommending a product they have viewed, left in abandoned carts, bought similar items or have bought in the past. We use a logic sequence in that order.

In this particular instance, the customer has purchased our catnip-infused candles, but hasn’t ever bought the oils despite the oils being more popular online and in-store.

Addressing the High Average Total Discounts in Dog Owners & Prioritizing High Spenders

Since dog owners have a high discount rate usage, we will need to address that at a later time. Both audiences are offered the same amount of discounts.

3 vials of pet safe oils for oil diffusers designed for cat owners in small spaces. the scents are lavender jasmine, chamomille peach; pear and cucumber. All approved by veterinarians and stated to not affect animal's senses, including animals with allergies.

Why Cat Owners Are Spending More Than Dog Owners Online and the Opposite is True In-store

When reviewing our customer personas for Ezra and Elizabeth, a few of our predictions are confirmed regarding income, lifestyle, online behaviors and interests

Elizabeth Harper: Leo & Felix (cats)Ezra Thompson: Chalupa (dog)
Average age2924
Average annual income$78,000$62,000
Digital behaviorsShops on Etsy, Target & ChewyShops on TikTok, REI, Amazon & Walmart
Wants aesthetically pleasing products; enjoys lifestyle home decor & houseplants (introversion)Budget-conscious; enjoys the outdoors, breweries & craft beer (extroversion)
Overwhelmed by low-quality online optionsClicks influencer recommendations
Makes purchase decisions based on store, Reddit & online reviewsMakes purchase decisions based on social media
Less concerned about cost and more concerned with comfortEnjoys DIY & How-to Video Content

Introversion and higher income in cat owners tells us they are more likely to spend time at home doing activities, which includes shopping. Our more extroverted customers like Ezra are more likely to set out for adventure in the outdoors or possibly a beer patio. We can also see that Elizabeth cares more about aesthetics than budget which is made very clear by her interest in Etsy and Target vs sites like Amazon or Walmart. Elizabeth would prefer to read reviews and study brands online while Ezra will make impulse purchases based off of influencer reviews.

Cat Owner & Dog Owner Emails

Dog owners are sent a very similar email, but the images pertain to dog related products. If, for some reason, we do not have an animal type specified or if the customer owns both a dog and cat, we have a more generic email. This scenario is uncommon, because our customers are urban-dwellers and often attach themselves to one species and/or breed (dog owners are more likely to attach to breeds.)

For our online shopping experience, we absolutely must continue to target dog owners while still prioritizing cat owners – meaning outreach via search, testimonials and emails.

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