7 For All Mankind launched in the Fall of 2000 in Los Angeles, and was the first company to bring premium denim to scale. The brand quickly earned a reputation for its innovative use of fabrics, fit, and finishes, and is now an international brand with over 100 retail locations worldwide.
The Challenge: Finding the right customer segment for a new denim line
In the Fall of 2016, 7FAMK launched their line of b(air) denim, an alternative to leggings with technologically advanced, light, form-fitting fabric. The marketing team planned to use email to promote the new Spring 2017 line, and ideally wanted to reach out to customers most likely to be interested in b(air) denim, rather than emailing their entire customer file. However, until the team could find the perfect b(air) segment, these style-specific emails would continue to be sent to the entire customer file — over 225,000 members — to maximize sales.
The Solution: Custora’s predictive affinity segmentation
7FAM used Custora’s predicted product affinity segmentation to identify the customers most likely to be interested in b(air) denim. Custora identified a specific segment of customers, some of whom who had purchased b(air) jeans in the past and some of whom were predicted to be likely to purchase b(air) products, the ideal target audience for a b(air) denim jean email promotion. The 7FAM team then set up a test — the entire file received the b(air) denim email, but the Custora b(air) segment performance was measured against the rest of the file and a control group from the b(air) segment that did not receive the b(air) email.
The impact was dramatic. Revenue per user for the b(air) target segment was $4.21 vs $1.67 in the control group, a 2.5x improvement. Even more impressive, the b(air) target segment (10,000 customers) generated more b(air) sales in the first 48 hours after deployment than the entire rest of the file (over 200,000 customers). The b(air) target segment had 21x better revenue per user than the rest of the email member list. 7FAM now knows they can solely send their b(air) emails to those with a predicted affinity for b(air) products— freeing them up to find more relevant messages for the rest of their file, delighting their customers, and maximizing overall revenue.
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