Podcast 23: Dynamic Ascending Offers (and Hamilton)

Competing against Hamilton, segmenting based on recency, and using dynamic ascending offers to make the most of your offer campaigns.     EXCLUSIVE RESOURCE: Want Drew's Dynamic Ascending Offers presentation slide deck? Click here download it as a PDF. Subscribe: iTunes | Stitcher What's the theater around the corner from Hamilton to do this summer? Drew knows someone in just this situation, and proposes a solution in dynamic ascending offers. This is a key concept to implement if your retailer distributes offers via email, and ties together all of our past discussion on recency. Highlights 00:23 – Drew saw Hamilton 01:15 – Recency – Good customers stay good 03:05 – Example of working with recency segments in Google Analytics 04:48 – Promotions – Most retailers OVER promote. Look at your subsidy costs 06:00 – Dynamic ascending offers – sync your offers to customer recency 07:05 – Your offer doesn't need to be a discount 07:30 – An example of a real world dynamic ascending offer 08:28 – Running a theater down the street from Hamilton – how do you even market that? Links / Resources Want Drew's slide deck from this presentation? Click here download. For more on using recency as a predictive metric, check out episode 18 (intro to recency) and episode 19 (working with recency segments in Google Analytics). To learn more about data-driven strategies that grow ecommerce businesses, just sign up for my mailing list. Transcript Prefer to read rather than listen to the podcast episode? No problem, you'll find a text transcribe below, and you can also download it for later. → Read the Transcript Hey, everybody, Drew Sanocki here with the Nerd Marketing podcast screencast. What musical is generating a half million dollars a week in profit? That's the question today, and the answer is, of course, Hamilton. I saw Hamilton recently, and like everybody else who saw Hamilton, I feel compelled to tell everybody else that I saw Hamilton. The subtext being that it makes me somehow cooler. Well, so I'm passing that on to you. I saw Hamilton, so I am cool. Seeing the musical did get me thinking. How would you compete with Hamilton? What if you're my buddy Larry, who wrote and produced this musical called Bat Boy, which is like around the corner from Hamilton. How does Larry fill the theater every night? Well, one of the things he can do is use dynamic ascending offers, and it's a strategy or a tactic that I think every e-commerce retailer can benefit from. If you're not using them, it will make you money, and they're very easy to set up and implement, and they wrap up two ideas that we've been talking a lot about in this podcast. Without further ado, the first concept is recency. We've talked about that in the last few episodes. We being me, by the way; I don't know why I'm using we. I've talked about that in the last few episodes. Recency is essentially the time since an action has happened. So usually it's in days, so how many days since I have last visited a site or opened an email or purchased from a site. Want to save this transcribe as a PDF? No problem, click here to download it. Really applies to anything, but it's time since in action and the more recent the person, the more likely he or she is to repeat an action and/or respond to a promotion. That's where it's interesting to you as a marketer, because if you have the option of promoting to customer A, who last purchased last week, or customer B, who last purchased two years ago, you know, spend your promotional dollars on customer A. They are much more likely to respond to a promotion. Another way of saying this is good customers stay good. If you've got somebody who's buying religiously every week from you, they are likely to continue buying from you. If you have somebody else who hasn't purchased from you in a very long time, they're likely to stay bad, so in the back of your mind,