The Canopy Labs Lead Generator: an introduction

A primary use of the Canopy Labs cloud platform is lead list optimization. When you have a large customer base and specific marketing campaigns in mind, it is crucial to generate lead lists that actually target the right customers for offers and marketing campaigns. Not doing so could lead to poor conversion rates and wasted effort.

Unfortunately, lead generation is not an easy process: you need to know who your customers are, what they are likely to want next, and make the list accordingly. However, there is light at the end of the tunnel: the Canopy Labs lead generator allows you to filter customers in such a way to boost performance of marketing campaigns. This tutorial aims to show you how, and includes three parts to the process:

  1. Creating a lead list based on future spend likelihood.
  2. Filtering based on past customer performance.
  3. Reaching out!

#1: Create a lead list

If you haven’t done so already, create an account on the Canopy Labs system and populate it with dummy data. See below for which options you need to check:

Once the data has populated, log in to the page and click on Leads > Generate Leads, as shown below. This will take you to the lead generator.

Once here, you can see a list of all the customers that fit a specific set of criteria, along with different ways to filter the criteria itself. Select “advanced options” to view the entire list. Here are some of the more relevant variables.

  • Segmentation. This allows you to choose specific types of customer profiles. Choose between valuable and unvaluable customers, those who exhibit positive or negative sentiment, and others all together. Visit the <> page to learn how customers get grouped.
  • Customer Spending. This allows you to filter based on the number of products or total amount of money that customers have spent.
  • Customer Lifetime Value (CLV) Differentiator. The Canopy Labs system tracks every individual customer’s spending habits and estimates whether their customer profile is one that is likely to spend more or less. This variable tracks the incremental opportunity of targeting the customer. A positive value means that you can likely get the customer to spend more, while a negative value implies they have overspent their profile (and as such, you should be cautious of targeting them aggressively).
  • Time metrics. Filter customers based on the last time they purchased something, or the last time they opened an email sent by your company.
  • Recommended product. This lists all the different products that could be recommended to different customers. You can filter the customer list to only those that are likely to buy a specific product.

#2: Filter on specific conditions, and tag customers

Now that you know what the lead generator provides, it’s time to actually generate the lead list itself. A common area of focus is to target customers that have not purchased recently, have a positive lifetime value differentiator, and have a clear product to be recommended. In this case, these are customers who are (a) likely to spend money, (b) haven’t spent in a while, and (c) likely to buy a product you’re recommending to them.

For the purposes of this demo, we selected the following criteria:

  • Customers who have bought multiple products in the past (customer has purchased 2 products or more).
  • Customers who are likely to spend at least an additional $15 (CLV differentiation set to 15 or greater).
  • Customers who have not purchased since March 2013 (last purchase date set with a maximum of March 31, 2013).
  • The “recommended product” for the customer is “Product E”. In other words, this will look for customers who are most likely to buy Product E first.

Of the 15,000 customers in the demo store, this yields a lead list with 39 customers (note that with your dummy data, the numbers might be different).

Once you’ve created the lead list, click “Assign Tag” to tag the customers and track them later. This will allow you to return to the customer group at a later time, or alternatively reference them when running specific analytics operations or building dashboards.

#3: Reach Out

You’re good to go! To get the full lead list, click “Download All” to download the lead list as a CSV file. You can now import this list into your existing e-mail tools or other outreach platforms.

If you’re reaching out by e-mail, a commonly used template for targeting the groups above is below. We encourage you to augment this template with images and links to the specific product you are recommending so you can track click-through conversion.

Dear ** Customer Name **,
Thank you for your continued supporting and purchasing from our store! We’re writing to reach out about feedback and see how you’ve enjoyed the last few products you’ve purchased. Let us know what you think on here, or happy to chat by phone.

Additionally, we wanted to let you know about Product E, as we’re having a special sale on this product. Let us know if you have any questions.

All the best,
** Sales Rep Name **

Send the e-mail, follow up with a call, and start shipping more of Product E. Happy selling!

Written by Wojciech Gryc

Wojciech Gryc is the CEO of Canopy Labs. Prior to Canopy Labs, Wojciech was a consultant with McKinsey & Co. and a researcher at IBM Research. Wojciech is a Rhodes Scholar and Loran Scholar.

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