New customer acquisition and latent customer reactivation campaigns are vital to the success of commerce brands, but they can present an uphill battle. Offering compelling product discounts is one tried-and-true tactic in these campaigns, but it can be a challenge to properly target a brand's efforts and provide a seamless means of offer redemption for customers.
PayPal Media Network (PPMN) recently launched a new solution, Closed Loop Offers, to help advertisers overcome these hurdles. In a Spotlight presentation at the iMedia Commerce Summit in Salt Lake City, Taylor Burton, manager of advertising solutions for PPMN, walked attendees through the data targeting and offer delivery features of this new program. He was joined by Amit Shah, VP of online/social, and Kapil Bansal, director of mobile, for 1-800-Flowers, who detailed the success that the brand has seen in leveraging Closed Loop Offers for its new customer acquisition and latent customer reactivation campaigns.
PPMN's Closed Loop Offers enables merchants to put money into customer PayPal accounts that can be spent only with that specific merchant. These offers are applied automatically at checkout, creating a frictionless experience for both the merchant and consumer, Burton noted.
PPMN notifies customers about available discounts via several means. Alerts are sent via email, and Burton noted that PayPal's role in the marketplace lends itself to exceptionally effective email communications. "Based on PayPal's trusted relationship with its customers, they provide us with their primary email addresses," Burton said. He estimates the fidelity of PPMN's email database to be as high as 97 percent.
Beyond email, customers' PayPal account pages provide a synopsis of all available offers that haven't expired.
Beyond the accuracy of PPMN's email records, Bansal noted that 1-800-Flowers achieved excellent results -- a more than quadruple return on investment -- by leveraging PPMN's exceptional custom audience targeting capabilities. PPMN is able to target offers to customers based on:
- Lookalike modeling: Merchants can leverage PPMN's algorithms to reach consumers who look like the merchant's best existing customers.
- Purchase intent targeting: Merchants can engage consumers who have a propensity to spend within specific categories.
- Lifestyle and life-stage targeting: Merchants can leverage purchase data to create customer demographic, lifestyle, and life-stage audience segments to target.
- Existing customers of a merchant who have been dormant for a certain period in order to deliver them a reactivation offer.
According to Bansal, the quality of PPMN's audience data and targeting capabilities is what sets it apart from other offer delivery options. It's not an affiliate marketing play, in which advertisers typically reach for the bottom of the barrel. Rather, PPMN opens up opportunities to advertisers across the vast and desirable PayPal customer base.
Because PayPal knows its end users, it's able to test different offer values and help merchants optimize their efforts to achieve the greatest life-time value among customers. "It's simply about figuring out who you want to target," Burton said. "Good data leads to better targeting, and better targeting leads to good data."