Meet Truly Experiences
Experiences are the thread that knit us all together, which is why Truly Experiences scours the globe to provide experience gifts that go beyond ordinary to assist in making memories that will last a lifetime.
Experience gifting is quickly on the rise to becoming the most popular form of gifting—which is great for the Truly Experiences team. But the combination of a rapidly growing business and the absence of a business intelligence plan or platform quickly lead to "Grade A" spreadsheet problem. Across the business, there were ad hoc reports being run on a daily basis, often with multiple versions of the same report flying around and no single source of truth.
On top of that, like most commerce companies, a large portion of Truly Experience's annual revenue is generated between November and December, so understanding and mastering their holiday analytics is key to optimizing spending and customer retention during the most wonderful time of year.
Consolidation and Standardizing
Truly Experience integrated RJMetrics into their business and was immediately able to consolidate data from their disparate data sources into one, central location that is easily accessed by everyone. From there, the team set up central dashboards to provide consistent data across departments—cutting down on the time and confusion caused by constantly running ad hoc reports.
Johannes Radig, Head of Growth Marketing
“We're saving time because we don't have to put everything into Excel and build analytics from there. RJMetrics does the job for us!”
The team set up reporting in RJMetrics to track key performance indicators (KPIs) month-over-month and year-over-year, like new customer acquisition, revenue, average order value, and repeat orders. These reports allowed them to confidently make strategy adjustments as needed, especially during the holiday season.
Optimizing the Holidays
While the largest portion of Truly Experience's business occurs during the winter holiday season, their reports painted a clear picture that customers acquired during this time, on average, had the lowest lifetime value (LTV). With this in mind, emphasis was put on making sure the right reporting was in place to maximize the value of advertising spend and holiday customer acquisition—specifically digging into questions like:
- What can we do to increase customer reengagement year-over-year?
- Are certain channels leading to more profitable customers?
- How do our overall KPIs metrics compare across acquisition channel?
Using RJMetrics, Truly Experience analyzed holiday customer data to find the best point in the customer lifecycle to target single-purchase customers. They found that the biggest jump in repeat order probability occurred between the first and second orders, where the probability nearly tripled, and the best time to turn a single-purchase customer into a repeat customer was within 1-4 months of the first purchase. With this insight, they launched a re-engagement and incentivization program.
To better understand where they got the most bang for their advertising buck, Truly built reporting to not only track the immediate revenue generated from advertising campaigns, but to also the LTV of customers acquired via each campaign to understand where they were generating long-term value. This helped them identify which channels were providing the best return on investment (ROI) and pivot their advertising spend accordingly.
Improved advertising spend efficiency by 70% - By using RJMetrics to compare the LTV of customers obtained through different marketing channels, Truly Experiences realized that their most valuable customers were being acquired via Google AdWords and reallocated advertising spend accordingly. This reallocation lead to a 70% improvement on advertising spend efficiency.
Improved customer retention rate by 12% - By launching a reengagement campaign targeting customers who have only made one transaction, the customer retention rate increased by 12% in 6 months—and is expected to continue to rise.