Success Story: Nicholas Jermyn
Finding The Trends Which Turn Into Profit
The One Thing
Nicholas Jermyn, an online men’s business shirt retailer, had recently been acquired by their new, ambitious, owners. The new owners understood that a key ingredient for their business’ success, was an understanding on which metrics of the company they needed to focus on, and drive on a regular basis.
The One Thing they asked of Delft, was, if we were to focus on only a handful key areas of customer behaviour to improve, which would they be and could those metrics be tracked daily using their Magento data?
KEY METRIC #1: TIME BETWEEN PURCHASES
To begin the discovery, Delft worked within their two main business data points, Magento and Google Analytics, to identify those crucial metrics which are the lifeblood of the business.
By merging the on-site user behaviour (Google Analytics), with eCommerce information and product detail (Magento), Delft could pinpoint those very areas of business that would make the most impact on profit.
KEY METRIC #2: WEIGHTED CART VALUE
It came down to 5 big metrics:
- Time between purchases; each day sooner, was worth $0.98 per customer per day.
- Weighted Cart Value; Delft could identify what behaviours led to larger carts.
- Average Tenure: Each extended month of tenure was worth thousands of dollars.
- Reactivation Rate: Decreasing the disengagement rate of their online customer base would only compound over time.
- Life Time Value: This was the overarching metric, which would grow more rapidly with each single improvement made.
KEY METRIC #3: AVERAGE TENURE IN MONTHS
The Nicholas Jermyn team has a perfect synergy between intuition and fact. The team worked hard to market their goods to the core base of customers.
They also worked tirelessly to keep up with the latest trends in shirt styles, to keep their storefront looking fresh.
KEY METRIC #4: WEIGHTED CHURN RATE
They now could turn to Delft’s insights daily, through an automated dashboard, tracking all these 5 key metrics.
Knowing whether a marketing campaign, customer retention initiative, re-engagement plan, product lines or even website changes impacted their key guiding metrics, instantly, meant quick and decisive decisions.
KEY METRIC #5: LIFE TIME VALUE
Nicholas Jermyn found by breaking down the business’ improvements into smaller bite-sized areas, meant more focus could be spent improving them piece by piece, team by team.