Straight Shot

Bike Shop Customer Database Case Study


     In early 2011, the owners of Boise’s oldest and most established bike shop, George’s
Cycles got word that a large national chain was coming to town. They knew in order to stay competitive they needed a solution that would engage their many existing customers while reaching out and connecting with as many new customers at the same time. With fewer than 500 contacts in an email database, management figured correctly that growing that number
was critical if they were to remain on top.


GROW THE LIST, GET INSIGHT
  Wanting to systemically gather as much information as possible from their loyal
customer base, the shop partnered with iCapture in March of 2011. Together they
developed a sequence of questions designed to give them a better understanding of
George’s customers. An interactive kiosk was installed in store in April 2011.

THE OFFER(S)
The Kiosk by itself wasn’t going to automatically build a massive customer list.
Customers would require some direction from the staff as well as some other incentive
or offer to sign up with an email. A universal bike tube was offered as a low cost item
that most cyclists would want and use. The iCapture system allowed them to promote
the free tube giveaway with a flashing offer on the kiosk/screen. After registration, the
system instantly delivers a dynamic and time sensitive coupon with an expiration date for a free standard tube.  


          


  Besides the offer of a coupon alone  customer uptake. The staff’s education,
interaction and promotion of the offer are critical to its success. So management
implemented a contest between employees and tracked the number of new contacts
added during shifts with the winners receiving cash or credit towards merchandise.
So, both customer and employee have something to gain or “skin in the game” by their
participation in the inputting of contact names and preferences and the ever expanding
customer databases at George’s Cycles


THE SET UP
With limited space by the cash register, the Kiosk was located by the front door on the
right when walking into the store and features some signage. While not ideal, it is highly
visible and easily accessible.


SEGMENTATION
Besides name and email, customers answer questions that help segment them into
smaller more targeted groups, so that each could be more directly and personally
messaged. The natural breakdown was type of cyclists (Road bikers vs.Mountain bikers
vs. Commuters, etc), level of cyclists (pro, sport, novice), and related issues or interests
(health/fitness, road safety, group events, etc.) In an effort to limit opt-outs, the question
of “How often would you like to hear from us?” was also added. These questions not
only let management target different groups with different messages and frequency, they
give owners important big picture information about their customers that they may not
already know or able to gather elsewhere.

EXECUTION
  With the Kiosk in place, the customer aware of what’s in it for them, the staff fully aware
of what’s in it for the customer as well as for each of them, the shop’s capture effort is
on. In some cases, employees walk customers through the series of questions, even
helping input their information and preferences. Most of the time, however, customers
are directed to the kiosk with the promise of a free bike tube upon completion of the
short series of questions.
For staff, a successful pitch must emphasize the store’s desire to deliver only the most
relevant information to each customer. No spam! Ultimately giving every customer
complete control over what is delivered to them and how often they will receive it.


RESULTS
  After 6 months of iCapture, the shop doubled its database adding 557 contacts
with preferences. Each of those received a customized Welcome email which nearly half
opened in the first 48 hours. Roughly 70% of those opening it clicked through to view the
coupon, with about half of them printing it. Overall, approximately 10% of the total new
contacts redeemed the coupon (58).
  In addition to nearly doubling their email database, the shop has also garnered
valuable feedback from their customers, including an overall preference for mountain
biking and commuting over road biking, a preference for weekly messages over monthly,
and an overwhelming desire to receive health and fitness information. From this, they
are devising content and frequency strategies for 2012.