Challenge
An e-commerce company was launching a dozen or more new products per month. The challenge was to get the news to the most interested audience. Previous campaigns relied mainly on generic newsletters and ads targeting a broad customer base, resulting in low open rates, click-through rates and ultimately, unsatisfactory conversions. Customer acquisition costs for new merchandise were high, and ROI was not meeting expectations. Precise targeting based on customer preference data was lacking.
Action
- Analyzed historical purchase data
Analyzed data on customers' previous purchases: favorite categories, price preferences, frequency of purchases. Used RFM reports to determine which customers to send premium product ads to. - Monitoring behavior on the site
The company began monitoring user activity, which facilitated subsequent segmentation. - Customers segmentation
Dynamic segments of customers who were most likely to be interested in a particular new product were created with iPresso. - Personalized e-mail campaigns
Instead of sending general ads about all the news, the company sent personalized messages, presenting only those products that matched the preferences of a particular segment. - Automatic notifications
Customers who expressed interest in a particular category and subscribed to the newsletter received automatic email notifications of new products earlier than others.
Emails included dynamically generated descriptions, images and links to product pages, as well as information about limited editions or pre-sale bonuses. - Recommendations tailored to the recipient
Upon entering the site, customers were shown personalized recommendations of products from the new collection.
Results
- Campaigns promoting new products proved to be relevant and gained customer interest. There was a 32% increase in sales of the new products.
- By targeting ads to the most interested audiences, marketing expenditures became much more effective. The company saw a 19% improvement in ROAS for novelty campaigns.
- An increase in email open rate by 20%. Customers were more likely to open messages that actually matched their interests.
- Average order value increased by 14%. Users were adding the latest products to their shopping carts, as well as adding goods from the store's regular assortment.
