Using data and AI to nurture Nutriment’s customers from new to loyal within 90 days.

The company.

Nutriment manufactures and retails innovative raw dog and cat food, both online and via multiple UK stockists.

The challenge.

We first worked with Nutriment on a sales drivers dashboard to help them understand where’s best to focus their marketing energies. We identified several revenue opportunities – including customer retention.

As a result, we were tasked with nurturing new customers so they’re more likely to become loyal brand advocates.

The solution.

You’ve probably (definitely) heard it before: acquiring new customers is far more expensive than retaining existing ones. In fact, studies suggest it could cost anywhere from five to seven times more. Therefore, making sure those hard-earned new customers don’t slip away is critical for retailers like Nutriment.

Nurturing customers goes hand-in-hand with tracking sales performance. As part of our work on drivers, we’d already segmented Nutriment’s customers based on:

• The date of their last shop.
• How often they make a purchase.
• Which product categories they buy.
• How much they’re likely to spend.

This segmentation helped us build a picture of Nutriment’s repeat and lapsing customers. As we were aiming to increase their base of loyal shoppers, we also analysed previous customer behaviour to find out what led to retention. For example, was it the number or timing of email communications? Was it relevant offers and discounts? Was it the marketing messages in each email?

This research informed a brand new, bespoke customer journey for Nutriment – which nurtures a shopper from new to loyal within 90 days. Using customer insights, our team selected the best time to engage with new customers, coupled with carefully selected marketing messages around best-selling products or detailed lab studies. We also incorporated special offers to retain new customers before they lapsed.

The results.

A customer nurture campaign complements our work with Nutriment on sales performance drivers – so measuring the results is simple.

We were aiming to increase (1) the number of new customers shopping for a second and third time, (2) the frequency of purchases and (3) the total spend per customer.

• Nurturing new customers increased the number of second and third shops by 11%.
• The improved customer journey reduced the time between first and second shops from 35 days to 31 days – overall increasing average transaction frequency by 8%.
• Average transaction values and spend per customer increased by 4% across the campaign.

And this is only the beginning. By iterating on the process, we’ve continued to drive value for Nutriment, further developing the nurture campaign to meet customers’ needs.

Nutriment’s Head of Commercial Ryan Winwright said: “Before working with HyperFinity, we were hitting a brick wall when it came to understanding customers and improving sales and loyalty.

“Now it’s a different story. HyperFinity’s blend of software and consultancy has empowered our business with the insights needed for proactive decisions. We understand our customers in detail, including how their behaviour impacts our sales performance.

“We’ve been impressed by the measures the HyperFinity team put in place to nurture our customers from brand new to brand advocates. The results speak for themselves – we’ve seen a significant impact on revenue and retention.

“We’re already looking forward to the next project!”

What’s next?

Unlocking the potential of data and AI presents retailers with a whole host of opportunities.

A customer nurture campaign logically leads onto targeting – we’re currently working with Nutriment on how best to target loyal and lapsing customers. Using our ‘next best product’ algorithms, we’re increasing conversion with product recommendations based on a customer’s last purchase.

Ready to unleash decision intelligence on your customer loyalty strategy? Contact us for a no obligation chat.