E-commerce private sale website drives marketing strategy with RJMetrics.
JackThreads is a members-only, online shopping club that curates contemporary men’s fashion brands. Launched in 2008, JackThreads was acquired by Thrillist.com in 2010, and it has seen its membership skyrocket to over a million members. It continues to grow rapidly in terms of users, sales, and data.
Business Problem
When Mike Novotny joined JackThreads as General Manager, he knew he needed a better understanding of where their most valuable customers were coming from, how they interact with JackThreads, and how JackThreads should react to that data. Recently acquired by Thrillist, JackThreads had experienced a surge in membership, and they were keen to keep their momentum by signing up new members through other channels. “We wanted to shift the marketing budget on a daily basis in order to funnel it toward the channels that would have the most impact” Novotny recalled. It quickly became clear that JackThreads needed a business intelligence solution that could provide relevant metrics on which to base their strategic decisions.
Solution: RJMetrics
Mike decided that RJMetrics could provide the right solution for JackThreads’s data analysis needs. “It was super simple”, Novotny remembers, as the complete initial implementation took less than a week. Since RJMetrics had experience working with other e-commerce websites, Novotny said, “They helped us figure out which charts would help us make the most impact most quickly. They understood the unique features in our model, and suggested analyses that were useful”.
With RJMetrics in place, JackThreads conducted complex analyses on metrics that were crucial to their strategy. They focused initially on customer lifetime value and lifecycle retention. Novotny recalls, “It was easy to look at cohort analysis and segment customers by key dates or campaigns. ” Using RJMetrics, JackThreads determined that one of their primary marketing campaign channels, although cheaper on a cost per acquisition basis, was far less attractive in terms of customer lifetime value. With this insight, JackThreads shifted the marketing focus and budget toward a new marketing channel that ultimately yielded a higher customer lifetime value.
Ongoing Value and Support
JackThreads is continuously experimenting with new campaigns in order to capture more value from its members. “We now use the data to get a sense of what’s important” said Novotny, “whether that’s finding a price point that works really well, or quantifying the effect of a free shipping offer that we’re running.” With RJMetrics, it becomes simple to see how an offer affects member-to-buyer conversion time, conversion ratios, repeat purchase probability, repeat purchase frequency, and customer lifetime value.
Novotny describes the service from RJMetrics as “super responsive and a ten out of ten. We knew trying to do something like this in house would have been a huge challenge. RJMetrics has helped us quickly gain valuable insights into our customers and top performing channels. I keep it on my screen all day long. It’s critical.”
If you are interested in learning more about RJMetrics you can learn How it Works, read the latest post at our blog, The Metric System, or sign up for a demo below.
