Corey Talking to a Camera About Cross-Selling And Closet Segmentation
Featuring Corey Pierson, CEO and Cofounder of Custora
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Cross-selling is a funny thing, funny term. It can make sense — What do you do with your customers? You cross-sell them, you up-sell them. But in retail, you're just trying to sell more stuff. How to sell more stuff to my customers?
Sometimes that exists that like, "Hey, if they just bought the shoes I want cross-sell them the shoelaces." Those coupled relationships do work. Something like Custora can help you with that to find out which of those things exist.
Are there clusters around certain products? We sometimes call it "closet segmentation," where you open up the closet and you see that there's a type of customers that buys shirts and skirts. Another type that's fancy jeans and boots. Those tell you something about, "Hey if you bought this then it might be an opportunity to also focus on these other categories."
I think most marketers we talk to, they talk about cross-sell and up-sell as a proxy of just "I want to get people coming to my store online or offline more, and I want to get them to buy more things."
With that, it's often the case — outside of some of those exceptional cases, where it's like, you bought the shoes, let's sell you the shoelaces — it's usually about just understanding the collection of things that your customers might like, the time of the year, your current trending products, and having an easy way to put those things together to get relevant stuff in front of your customers all the time.
There's a number of ways Custora helps with that. On every single customer, we know — at a real high categorical level, in a subcategory level, down to the product level — the products that we think that they are interested in right now, this quarter.
Then it factors in all of that stuff. There's a number of customers that work at a number of brands and say, "Hey, I've got this great pool of data, I'm going to clone it into my e-mail provider and I'll set up dynamic emails. I'll figure out which items to show and in what sequence to show."
The goal of that is we're trying to put relevant stuff based on the latest and greatest inventory we have and everything we know about customers and the time of the year it is and the discounts were running and all that good stuff.
The thing that moves the needle the most is just being more relevant in general as opposed to these specific triggers (outside of the exceptions when there are, again, very tightly coupled things).