Gourmet Food Purveyor Segments for SuccessAll Stories
- Bring back lapsed purchasers.
- Target effectively during short holiday seasons.
- Educate customers on know how to prepare products.
- Automate preparation instructions with purchase.
- Create lapsed purchase series.
- Craft segmented messages that match customer preference.
- Combining customer data with targeted messages drives repeat customers.
Farmison & Co is a gourmet food delivery service that deals exclusively with the highest quality and variety of English meats and cheeses. Founders John Pallagi and Lee Simmonds know their audience well.
“Our customers don’t just want to pop down to a regular shop for an important meal, they want something truly special. Something that stands out.”
The catalog of products speaks for itself. E-Commerce food companies are discovering that consumers want efficient ways to find what they need, but they don’t want to give up the uniqueness that can be found in a rural farmers’ market. Sitting at the intersection of these two consumer desires, Farmison & Co is poised for success.
“We know we have an audience who buys very seasonally. Christmas is our peak season, and though we knew a lot about our audience, we weren’t able to access that data and target them with relevant offers,” Simmonds said.
In short, Farmison & Co wants to present the right product to the right person and they know this is a requirement to staying competitive.
“Heading into the Christmas season of 2013 we had just signed on with Bronto. We finally had the power to segment our audience based on both current shopping habits as well as past purchases,” said Simmonds.
Farmison & Co segmented their audience by:
- Preferred product line (meat, cheese or veg)
- High buying potential (VIPs)
- Past gift purchasers
- Lapsed buyers from the prior two years
The messaging differed for each audience, making it more likely that the audience would respond. “After someone would make an order, we were able to track when they would receive it and send out cooking instructions with recipes. People loved it. If you’ve spent a bit more to buy a rare breed of meat, you don’t want to cook it the wrong way. This effort to add more value to the purchase made a huge impression on our customers,” Simmonds said.
Offer to those who had gifted in the past
Message to those known for purchasing Christmas product
Farmison & Co emailed customers who hadn’t purchased in two years. Of that group,16% returned to make a purchase. Among prior-year buyers, the conversion rate was 24%.
Farmison & Co also created a VIP group made up of past purchasers who had spent above a certain amount. Previous attempts at remarketing to this audience in a more generic way had been unsuccessful. But this time they targeted the VIP group with messages offering specific products that would appeal to their tastes.The campaign proved successful, with 26% of the group converting on these targeted messages.
Overall, Farmison & Co generated a year-on-year revenue increase of 160% from the email channel by using smart segmentation. For the first time, they also saw a sales lift in January, which is typically a slower month for them.
For most online retailers, bringing customers back to buy again is a challenge. It is especially difficult during competitive peak seasons. But Farmison & Co met this challenge head-on and succeeded by using a segmentation strategy that utilized past purchase data, demonstrating the importance of combining customer data with targeted messages in driving repeat customers.