July 27, 2023
Hairhouse, Sarah & Sebastian reveal most impactful data discovery at Online Retailer 2023
The number one meeting destination for the Australian ecommerce industry did not disappoint in 2023.
In addition to our eye-catching booth, which we quite literally thought was “lit” (pun intended), we were thrilled to sponsor an exclusive panel track, hosted by Co-founder and CCO, Dave Whittle, which was dedicated to exploring the realm of omnichannel retail data.
Witnessing numerous brands transform their strategies after tapping into the potential of their data was remarkable. Sharing these firsthand success stories was an incredible experience.
Navigating data and retail challenges
Partnering with hair and beauty giant, Hairhouse, jewelry specialist, Sarah & Sebastian and digital agency and consultancy, Noble Five, our Head of Sales (ANZ), Aaron Luxmoore, hosted the panel to discuss the data-driven discoveries that have made real change to marketing strategies, business priorities and more.
Here are some of the highlights:
- Prioritize customer lifetime value over average order value
Being an omnichannel, franchised retailer that operates three distinct business arms – piercing, salons, and products – Hairhouse’s journey to simplifying its diverse data has faced more hurdles than most.
Ash Mehta, Head of Digital and Technology, explained that historically the brand had relied on average order value (AOV) as a key metric indicating sales channel performance, due to the manual and time-consuming process of data analysis.
Through this lens, AOV calculations suggested online-only customers were the most valuable to the business, spending more than omnichannel and offline only, respectively.
This myth was quickly dispelled upon the adaptation of the CDXP. With customer lifetime value (CLV) now easily accessible, the team found that, despite lower AOV, the CLV of omnichannel customers was double the combined lifetime value of the two channels in isolation.
This critical business insight has prompted a focus on cross-promotional activity and further investment in their omnichannel strategy.
- Find your most profitable segment and create experiences dedicated to them
Not unlike Hairhouse, jeweler, Sarah & Sebastian is working towards a truly omnichannel strategy, as quick growth has meant acquiring more bricks and mortar locations fast.
Georgie Yates, Digital Director, explained that the brand has recognized the value in offering new and existing customers both in-store and online options throughout their purchase journey.
For Georgie’s team however, it was customer intent, rather than the channel, which shifted their latest marketing strategy – following the insight that gift purchasers spend 32% more than the average customer.
In the short term, this was actioned through a digital campaign with a gifting-focus creative and a refined audience. Looking more long-term, Sarah & Sebastian is focusing on establishing personalized relationships with gifting customers, prompting birthdays, anniversaries and holidays to foster a connection between special occasions and their jewelry.
- Measure omnichannel sales to quantify the true impact of digital advertising
Max Flanigan, Founder at Noble Five, provided the perspective of retail trends and experiences across the market. Outlining the fast-paced shifts and interesting trends he sees across the digital advertising industry at large.
While new demand generated increased ad expenditure by 9.1% last year and 36% the year before, this year the results are telling a more specific story.
Cost per acquisition went up earlier this year, but not in line with CPC, CPM and CTR. This tells us that brands are active and consumers are engaged, but purchase journeys are becoming longer and more considered.
Max urged brands to establish ways to quantify the impact of digital advertising against customer value and for omnichannel brands to include in-store sales in their performance measurement.
Although the economic downturn is dampening acquisition rates, the renaissance of bricks and mortar experiences and the increase in omnichannel purchase journeys are likely to reveal that some customers are back to interacting online but converting offline.
He also explained how value based bidding is another key trend for digital marketers. By combining this strategy, and tools like a CDXP with Conversion APIs, marketers can unlock more sales by improving optimisation and enabling more effective measurement.
When done effectively, this data can be the missing piece required to create an impactful story for marketers to share with management and beyond.
Celebrating the best in retail at the ORIAs
Congratulations to the 2023 finalists and winners of the Online Retail Industry Awards (ORIAs) this year! It was a fantastic night, and I was lucky enough to join the festivities with Ash Mehta, Dave Whittle and Aaron Luxmoore.
The night was a true celebration of all that is good and inspiring among the top performers in Australian retail, highlighting outstanding results from the last 12 months.
See you in 2024
It was a pleasure to explore, learn and share the latest and greatest in retail’s challenges and trends at Online Retailer Sydney this year.
A big thank you to everyone involved who helped make the conference so valuable for all.
If you missed us at the booth last week and want to learn more about how Lexer’s CDXP can help with understanding your data or building an omnichannel strategy, book a demo today.