STORES Magazine - May 2014 - (Page 37)

n CONSUMER TRENDS Sustaining Sales The Honest Company turns data into action by KAREN M. KROLL W customers and sales. To better target consumers and drive more purchases, Honest brought in Retention Science, a platform that helps companies gain more business from existing customers by employing software that leverages "machine-learning algorithms." That is, the software can analyze and learn from customers' previous history on Jao previously co-founded two other e-commerce marketing technology companies, and also sold comic books and video games online. Those experiences showed him that the constant chase for new customers left little time for building a more loyal customer base. "I realized how important retention marketing was, as I searched for ways to build a more sustainable business," he says. Moreover, Jao noticed a gap in the market when it came to solutions that helped retailers understand and ultimately keep their clients. He and co-founder Andrew Waage plan to change that with Retention Science. "We help ensure that customers make multiple purchases," Jao says, "so you can make money on the time and money you spent acquiring them in the first place." hile all retailers strive to capture new customers, gaining more business from current clients is an easier and less expensive way to boost revenue and profits. After all, current customers - including those who have visited a retailer's website and left an e-mail address, but have yet to make a purchase - already know the company and presumably have some interest in its products. The Honest Company, a twoyear-old purveyor of eco-friendly baby, health-and-wellness and cleaning products co-founded by actress Jessica Alba, was spending quite a bit on member and customer acquisition. Once potential customers registered on the site by providing an e-mail address and password, the company still needed to determine how to activate them. PRICE VS. Like many retailPREMIUM ers, The Honest SHOPPERS Company tried a The Honest Company is using Retention Science's Retention Scinumber of different ence works with offers. These usually Customer Profiling Engine to identify when to both Internet and started with a free reach out to customers, the promotion most likely bricks-and-mortar trial; if a customer to resonate with them and the ideal schedule for retailers, and its still didn't buy she re-engaging with them. clients share several would receive adcommon traits. For ditional offers such starters, they are "looking for a more as 25 percent off a purchase or free a website to help retailers determine sophisticated way to market" to curshipping. The offers often increased in how best to re-engage them, says Jerry rent and potential customers, Jao says. value over time. Jao, Retention Science CEO and coMost also have more than 1 million That's an expensive way to capture founder. WWW.STORES.ORG STORES May 2014 37 http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - May 2014

Brave New World
Information for All
Dreamy Solution
Traveling in Reverse
Retail People
Teen Angst
C2W
Editor's Page
President's Page
Retail Politics
NRF News
POV
NRF Communities Update
End Cap
Trends
Consumer Trends
Personalization
Omnichannel
Analytics
Store Operations
Marketing
Loyalty
Preparedness
Surveillance
Fraud

STORES Magazine - May 2014

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