THE CHALLENGE:
Veribella had found its niche in its industry category. Though the products purchased by customers were reviewed and rated high, the problem endemic to the DTC world persisted, i.e. high marketing costs and fewer conversions. High CAC and low marketing ROI started emerging as threats, with the potential risk of putting the brand out of the competitive race. A deeper understanding suggested that most of its orders were/would be placed when the brand rolled out discounts for its products, and no. of orders fell drastically in the absence of any discount, a pattern that directly threatens a brand identity because though revenue was generated even on discount, an “always-on-discount” image of the brand could seriously negatively impact brand perception. Veribella, wishing to position itself never for value-seekers but for quality-seekers, decided to revamp its strategy and marketing efforts to turn around its customers into evangelists.
THE SOLUTION:
Personalized recent site-based action targeting.
RetainIQ’s powerful hyper-personalization solution helped Veribella make the most of the data that came in from users’ recent actions on its platform. Data-first approach allowed Veribella to reach customers with content, product recommendations and offers relevant to them.
How?
Since Veribella was already using RetainIQ’s Email and SMS flows, all that needed to be done was to add dynamic tags to Emails and SMSes that would individualize variables for each customer based on their recent site-actions. A browse abandoner would be recommended products that appealed to his/her affinity along with a limited-time exclusive discount meant just for that visitor. This turned two things in favour of the brand: one, it reached customers with content they found interesting and second, reaching customers with discounts exclusively meant for them allowed for bringing discounts down on the main portal, making recipients of such emails and SMS feel special and at the same time rush to make purchases before the offer ends.
In a similar way, cart abandoners were reminded in Emails and SMSes with the dynamic images of products they left in the cart, plus the limited-time discount unique to them, and customers who had already placed orders were reminded of their replenishment. With limited-time offerings and unique coupon codes in place, customers were hooked well to take action almost immediately.
RESULT:
1. Average customers spent more when Veribella stopped providing discounts on its platform and started reaching with dynamic individualised coupon codes on the basis of customers’ affinity for the products. As a result, the total count of orders increased by 28%, and so did the revenue. And, yes, an “always-on-discount” image took a back seat and people’s perception of the brand significantly increased.
2. Approaching new prospects with product recommendations based on their implied affinity during site visits, complemented with unique discounts moved prospects to take action i.e. to place orders and become Veribella’s customers, resulting in the reduction of CAC by 37%.
3. Though the brand was reminding its cart abandoners through a varied medium, the recovery rate could not grow beyond 7.6%. However, RetainIQ’s hyper-personalization solution helped Veribella target its customer precisely and relevantly, resulting in a 261% increase in Cart Recovery Rate, i.e. from 7.6% to 27.4%.