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How Panduro re-engaged 4% of their churning customers using a “we miss you” automation

Panduro was born through sheer creativity and opened its first store in Denmark in the mid-1950s. Today, Panduro is a market leader in hobby materials in Europe, with an online shop and 103 stores in six countries that offer everything for anyone who loves to create with their hands.

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Some of the results:

4%
of churning customers are re-activated
3%
conversion rate from abandoned cart emails

Creating well-thought-out customer experiences that run themselves is Panduro’s thing. They basically have a dedicated automation for every step in the customer lifecycle: an onboarding automation to welcome and activate new customers, post-purchase automations to retain the customers, and a churn automation to re-activate customers that are about to leave them.

With the help of predictive scoring, we can act as soon as a customer deviates from their purchase behavior – and win them back before they churn,” says Anton Rydje, CRM Manager at Panduro.

Although the churn automation hasn’t been up and running for that long, the result is pleasant. After only one month, the conversion rate is 1.2% and Anton believes that the number will increase – a whole lot.

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"We can see that SMS is the most effective channel."

Anton Rydje, CRM Manager at Panduro

Besides the churn journey, Panduro has set up a “we miss you” automation with the purpose to re-engage customers that haven’t shopped within 23 months. This is the very last step in the customer lifecycle, and it looks something like this:

The customer who enters the flow gets excluded from any other communication. A conditional split takes the customer down different paths based on if they’re reachable by email or SMS (email being the prioritized channel). A message saying “we miss you – here’s a create and craft discount” is sent out, and the customer has 30 days to redeem the offer. The email also contains product recommendations to increase the chance of conversion. Once every seven days, a reminder is sent out to customers who haven’t shopped with the discount. If a purchase hasn’t been made within three weeks, the very last reminder is sent out via SMS – even to those who are reachable by email. This has led to great results.

Since launching this automation in May 2020, we have re-activated 4 percent of our churning customers. We can see that SMS is the most effective channel because a total of 7,5 percent of customers that are only available by SMS have redeemed their offers. We can also see that SMS reminders sent to customers available by email have had a great effect on conversion,” says Anton.

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"We can also see that SMS reminders sent to customers available by email have had a great effect on conversion."

Anton Rydje, CRM Manager at Panduro

Ways to optimize future communication

For a few years, Panduro has also worked with abandoned cart automations to bring customers back to their shopping carts to complete their purchases. A popular automation that Anton is very fond of.

Over 3% of customers who opened the abandoned cart email have made a purchase. That’s pretty amazing, considering no manual work is needed to achieve this,” says Anton.

Making sure that the automations you’ve set up are successful and bring great results is essential – and this can be done in several ways.

We look at the redemption rate for offers and follow statistics from emails and SMS to be able to optimize our future communication,” says Anton.

So, what now? Panduro’s next step within the space of marketing automation is to increase the number of post-purchase and refill automations – and to focus more on cross-selling flows to get customers interested in items that are similar to the ones they’ve already bought.

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"Over 3% of customers who opened the abandoned cart email have made a purchase. That’s pretty amazing, considering no manual work is needed to achieve this."

Anton Rydje, CRM Manager at Panduro

Panduro’s marketing automation tips and tricks:

“Use the abandoned cart automation – it’s amazing”  

Increase sales by communicating with customers who have left something in their shopping cart without buying it. These emails have an open rate of around 50 percent, and a lot of those customers will go back and complete the purchase!

“Perform A/B tests on content before you automate it” 

Learn from what works and what doesn’t when it comes to copy, content, and offers – then take what’s best and make it part of the automated communication.

“Build broad and well-thought-out flows”

Instead of building many small automations that connects to each other, try to get the whole journey into one flow. By setting up comprehensive automations, you will see how each step contributes to the flow – and it will be easier to follow up on the result!

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