Outdoor retailer Kathmandu is capitalising on customer data from its Summit Club loyalty program to build better relationships with their customers and increase revenue.

Yelda Rahimi, marketing manager – customer, told Which-50 Kathmandu takes that data, and leverages Salesforce marketing cloud to build customer journeys and one-to-one personalised communications.

She explained, “[We can] be relevant through our communications whether that’s product recommendations or content recommendations, based on what we know about our customers. So we have our customer data, transactional data and we know what their interests are in terms of what types of activities [they like], whether it’s hiking, camping or travelling.

“We use that information and we are now able to utilise it and engage with our members and increase frequency of visitation and spend.”

The retailer launched its first lifecycle campaign on the Salesforce marketing cloud in 2015. Kathmandu has 1.9 million active club members through their Summit Club membership program.

According to Rahimi, their lifecycle campaigns target customers from the onboarding journey when they sign up to the Summit Club loyalty program.

She said the retailer wants to give their customers a good onboarding experience and use that as an opportunity to capture more data, which is then used to drive personalisation across future lifecycle campaigns.

Positive results

Since launching, Rahimi said the outdoor retailer has seen positive results around attributed revenue growth.

She said, “In FY18 we increased our attributed revenue of predictive intelligence by 244 per cent and our lifecycle programs generated 186 per cent growth.

“We are seeing more customers engage and respond with our lifecycle program. They’re engaging with our personalised comms and also utilising our Summit Cub data to target customers on social channels.

“Through Facebook we are seeing return on social ads which is 15 times our investment.”

John Sette, group marketing manager, Kathmandu said when it comes to business strategy the company was focusing on digital transformation, ensuring they move from a mass marketing, above the line media approach to more digital, one-to-one personalised marketing.

Future developments

Looking to the future, Rahimi said they want to use live data and feed it into their lifecycle program as it will help fuel personalisation.

She said, “We are a seasonally driven business so utilising things like weather to be able to recommend the right products and right content and messages based on live weather data.

“For example, if a customer opens an email and it happens to be raining at the time, we can serve up product recommendations to encourage purchase in rainwear and engage customers in that way.

“We can encourage customers to get outdoors by using live weather forecasts that say ‘the weather is great this weekend why don’t you go outdoors, here’s some product recommendations’.”

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