Did you know that 80% of revenue comes from 20% of your customers? Mike’s Bikes, the largest independent bicycle dealer (IBD) in North America, uses Ascent360 to identify and target these high-value customers, driving revenue even in “the new normal.”
While the COVID-19 crisis has presented challenges for many industries, IBDs have actually seen an increase in sales: up to 70% for some retailers. With most gyms still closed and fitness classes canceled, outdoor recreation is booming. Mike’s Bikes was ahead of the game, having already chosen the Ascent360 customer data platform (CDP) to personalize marketing for their massive customer base.
In a recent webinar, Ascent360 spoke with Mike’s Bikes to learn how they use the CDP to capture sales, even in challenging times; watch the webinar recording here. In this blog post, we’ll share a few ways that bike retailers can follow their lead and ride high in the new normal (and beyond).
Personalized segmentation drives revenue
With 12 retail locations and a large online shop, Mike’s Bikes needed targeted messaging to draw high-value customers back to their local store. Before using Ascent360, they were sending generic “batch and blast” emails to everyone on their list. Now, the CDP allows them to create rich customer profiles, identifying the right customers — top spenders, repeat customers and recent buyers — and automatically sending them the right messages at the right time.
This “set it and forget it” marketing frees staff at Mike’s Bikes to focus on selling to these valuable customers, rather than writing personal emails to each one.
Return-traffic campaign drives huge revenue
Mike’s Bikes has seen huge success through a return-traffic campaign, in which the CDP automatically emails guests 90 and 120 days after purchase if they haven’t come back. Email content is dynamically updated to match the customer’s local store. This campaign alone has driven over $100K in revenue and doubled the typical conversion rate.
- MIKE'S BIKES RETURN-TRAFFIC CAMPAIGN RESULTS -
‘Thank you’ goes a long way
Mike’s Bikes also used the CDP to create a post-purchase campaign that automatically sends bike buyers an initial thank-you email, then continually updates offers over the next 24 months to encourage relevant purchases and timely trade-ins. This is a great tactic for IBDs that want to better engage customers; while generic emails are only opened 13-14% of the time, on average, campaigns with personalized offers such as these see 40-60% open rates.
Build loyalty to bring customers back
It costs six to seven times more to acquire new customers than it does to retain current ones. Customer loyalty programs keep buyers coming back, boosting profits as much as 125%. Using the CDP and guidance from Ascent360’s marketing experts, Mike’s Bikes creates targeted campaigns that use smart segmentation to build customer loyalty.
These include promotions for kids’ bike sales and trade-ins; cross-selling maintenance plans to high-value bike customers; and offering personalized rewards to members of their Peloton Club loyalty program.
boost in profits
Are you ready to segment easier, engage smarter and succeed faster in any retail environment? Start seeing results like these in just 30 days and five hours of your time. Contact us for a personalized demo, or watch our webinar recording to learn more about how Mike’s Bikes uses Ascent360.