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LG achieved 10% additional increase in revenue with online recommendations and a 13% using trigger-based emails

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Although we can find and buy products from big brands in marketplaces and multi-brand stores, loyal customers often prefer going to their favorite firms’ websites to choose products directly from the catalog. That is what led LG to turn to Retail Rocket for ensuring a unique shopping experience through a comprehensive personalization strategy across all channels. 

Let’s see how, thanks to the AI technology and taking into account the official online store’s particularities, this global brand of home appliances and electronics achieved its goal.

LG Figures and facts

LG is one of the leading companies of electronic products and home appliances in the world. It has 120 offices in 95 countries and its own online store. LG’s philosophy revolves around people, striving to understand customers’ needs and supplying the best solutions.

The main task:

The company focuses on providing every user with a personalized approach in the online store and all the communication channels. That will increase customer satisfaction, loyalty, and recurring sales. 

Solution:

The Retail Rocket solution aims to develop a comprehensive strategy to personalize every customer’s shopping experience:

  • Showing a relevant product offer in the online store
  • Personalizing automated email campaigns to cover the whole customer journey 
  • Optimizing the effectiveness of trigger-based scenarios by using Growth Hacking technology

Results

LG’s goals and objectives

The strategy set to offer every single customer the most relevant and personalized offer based on their interests and needs will ensure:

  • A personal shopping experience on the website and email channel; 
  • An increase in revenue, average order value, and conversion by integrating a strategy based on IA across all the customer communication channels.  

“We have a wide catalog, which is constantly updated with new products, so it is crucial to provide customers with convenient, easy, and intuitive navigation on the site, to make their shopping process simple and comfortable. In addition to personalized offers on the site, we would like to communicate with customers on other channels, and trigger-based emails might be the most effective solution. That will allow us to increase both KPIs and customer loyalty,”

Dmitry Atlyakov, Project Manager – LG online store.

Retail Rocket Solution

To personalize content both on the website and trigger-based emails considering every user’s interests and behavior, we use the modules of the Customer Intelligence platform. First, we collect data about the user’s interaction in the store and then segment the audience based on different parameters. This way, the most relevant offer will be shown to each customer, increasing conversions and recurring sales. 

Let’s see in detail how these solutions were implemented step by step to achieve the objectives: 

  • Creating a unique profile for each customer using the Data Warehouse module, combining data on buyer behavior both in-store and online. Storing it in one place will make it easier to use this information to segment the audience, solve any marketing problems, and automate campaigns. 
  • The AI Personalization Engine module provides a personal approach, an artificial intelligence-based system that knows which offer to show, at what time, and through which channel for every specific customer. 
  • Developing and implementing a strategy for smart sales on the site and the email channel, which will increase customer loyalty and ensure the growth of KPIs.

“To create a positive shopping experience on the site and increase customer conversion, we offered each customer their unique version of the online shop based on their interests. The site is rebuilt in real-time, reacting instantly to every user action. The strategy is reinforced by trigger-based emails, which automatically “react” to customer behavior: recalling abandoned products in the cart, inviting them to share their opinion on the purchase and allowing delighting the shopper with new relevant offers.”

Alexey, Retail Rocket Manager.

A unique version of the online store for every user with personalized recommendations 

Artificial intelligence makes it possible to display a personalized version of the website for every visitor.  Thanks to data-driven technology, product recommendation blocks change in real-time, constantly adjusting to each user’s interests and behavior. Offering a unique experience throughout the Customer Journey will facilitate the purchase decision, shortening the process and increasing conversion and revenue.

The LG online store includes 30 recommendation blocks on the main pages of the website:

  • Home page;
  • Category page;
  • Product card page;
  • Page 404;
  • Favorites page;
  • Promotions page, etc.

Let’s see how we personalized the content for every user based on the sales funnel’s stage they are in: 

Delighting visitors right from the start with the best offers

Using Artificial Intelligence in online merchandising allows you to show a relevant offer to both new visitors and regular buyers on the website.  Two kinds of recommendations perfectly work on the homepage to motivate visitors to keep browsing the online store. Bestsellers, for those who do not know the store and its products yet, and personalized recommendations for users who have already interacted on the website and whose interests and behavior have been previously stored. 

Both product selections will be automatically displayed based on the category, brands, and price range of interest to every customer in real-time. 

In addition to the recommendation block, a personalized banner is displayed on the online store’s home page, whose content will change based on each customer’s interests and preferences. Thus, every user will get a unique, “personalized” version of the page.

Helping the product search by personalizing the offer in the category

When customers land on a particular category in the online store’s catalog, they are one step closer to completing an order. Providing every single customer with a personalized and relevant offer on this page will facilitate the decision-making process. That will shorten the Customer Journey and significantly increase the conversion and purchases.

Motivating the user to continue the purchase process on the product card page

The fact that a visitor analyzes a product’s features is a sign of a high and real buying interest. The likelihood of finishing a purchase will depend on whether or not these characteristics meet their expectations. Therefore, it is on this page where you should give the best to ensure that the user finds what they need. 

Not showing recommendations at this stage of the Customer Journey will highly increase the risk of a user abandoning the online store if the product they are viewing is not what they are looking for. 

In LG’s online store, two personalization mechanics have proven their effectiveness: similar and related products. The first selection includes alternatives that can attract the shopper’s attention if the product card does not meet their needs. The second block shows complementary goods to complete the order. Both are very effective in increasing the revenue; while the first one will improve conversion, the second will increase the average order value. 

We prevent an error page from driving users away from the website

Not all marketers know that an error page, which a priori will lead many visitors to leave the website, can become an opportunity to make a relevant offer. 

So, if a visitor ends up on a 404 page, showing personalized recommendations will motivate them to continue searching in the online store; otherwise, they would be lost users.

Do not miss the opportunity to always show a relevant offer on every page of the site by using Artificial Intelligence. Because the more you make the shopping and product search process easier, the better the customer experience will be and the higher the customer satisfaction and conversion.

Trigger-based email communications to increase sales and increase the frequency of repeat purchases

Communication with trigger-based emails is one of the most effective marketing tools to keep your customers returning to the site again and again. These behavioral-based mailings will not only simplify the customer’s journey through the online store until they complete an order but will also motivate them to make future purchases.  

With a single simple configuration, you can launch all your campaigns without requiring the help of specialists or endless hours of manual work. Every customer’s behavior on all channels, whether an action or the lack of it, will trigger the automatic newsletters for each specific scenario and user. 

Retail Rocket’s big data technology can automatically select the best content and the optimal time and channel to encourage each user to return to the website to complete the purchase.

LG uses trigger-based emails to cover the entire customer journey in the online store, both during the checkout process and once the order is complete. These mailings are also very effective in reactivating “sleeping” subscribers who have not opened newsletters and visited the site for a long time. 

LG’s online store has ten scenarios running, some of which have been improved through follow-ups.

The customer’s behavior will automatically send the trigger-based email. Let’s take a look at some of the newsletters LG uses for the principal scenarios. 

Abandoned cart scenario to increase the conversion

When a user adds products to the cart and doesn’t complete the checkout, the online store will automatically send a trigger-based email for the “Abandoned Cart” scenario. That contains a welcome text, the products in the cart, and recommendations based on the user’s interests and behavior. 

Saving customers time is key to making the buying process more convenient, so providing the opportunity to return and continue shopping directly from the newsletter is the perfect solution to achieve this and increase sales.  

Suppose the newsletter does not have the desired effect and the customer does not return to the online store to conclude the order. In that case, we recommend sending a follow-up, which will significantly increase the possibilities of purchase.

Since users may receive many emails in their inboxes every day, it is possible that the first “abandoned cart” email sent may be lost. Therefore, it will be the sending of follow-up emails that will once again capture their attention. But be careful not to prompt a negative reaction by saturating the user with annoying messages. The power of Artificial Intelligence will be essential to avoid this. 

Retail Rocket’s system of mathematical algorithms can identify how much time to leave as a “silent period” between one newsletter and another so as not to annoy the recipient.

In the case of LG, the chain of trigger-based emails includes two follow-ups simultaneously as a reinforcement to the first newsletter for the abandoned cart. 

Turning “sleeping” subscribers into active ones

To recover the interest of inactive subscribers, our email marketing specialists have developed a scenario to re-engage users who have not interacted with the online store in a long time. 

This scenario focuses on two main goals. Firstly, to bring back subscribers who are in the risk zone to communicate with the online store. And secondly, to determine which part of the database is no longer interested in receiving information and later design a specific strategy for this segment by finding out the reasons that led them to lose interest. 

To further motivate the subscriber to interact again with the online store directly from the newsletter, the LG trigger-based email contains a personalized selection of products based on the user’s interests.

Post-purchase scenario to build customer loyalty 

The fact that an online store shows interest in the opinions of its customers is something highly valued that increases brand loyalty. Email is the perfect channel to allow them to communicate with the brand and share their comments. And the best time to do this is undoubtedly after the order through a newsletter where the online store encourages them to share their comments and the purchase’s review.

LG sends its subscribers a promotional code with a bonus applicable on the next purchase in exchange for the product review. And the online store also takes the opportunity to ask customers to help them improve by sending feedback through a form. That increases engagement, customer loyalty, achieving a very positive effect on conversion and revenue.

Results

A personal approach throughout the entire Customer Journey managed to reach the set goals and obtain the following results: 

Effectiveness of personalization on the online store:

  • 10% of revenue comes from recommendations in the online shop;
  • Conversion of users who interacted with the Retail Rocket’s recommendations is six times higher than the site average;
  • 13% of orders contain products from the recommendation blocks

Results obtained by sending Trigger-based emails based on the customer’s behavior:

  • Trigger-based emails generate 58% of revenue in the email channel.
  • 13% of trigger-based email revenue comes from post-purchase scenario newsletters 

Comments on the project

“A comprehensive, personalized approach helped us make targeted offers to our customers, which ensured conversion and revenue growth. In addition to financial results, we expect to achieve an increase in customer loyalty and recurring sales, as we interact with customers not only through recommendations on the site, but also through trigger-based emails that respond to each customer action,” – “We have a vast catalog, which is constantly updated, so it is vital to provide customers with simple and convenient navigation on the website so that the shopping experience is unique and truly positive. In addition to personalized offers on the site, we want to maintain communication with customers on other channels, and sending newsletters is the most effective solution. That will allow us to increase our KPIs and customer loyalty.”

Dmitry Atlyakov,  Project Manager – LG online store

“Smart online merchandising helps the customer navigate LG’s online store, where a wide assortment of technology and electronics is displayed. trigger-based communications provide interaction between the company and the buyer in the email channel. We have designed and implemented a comprehensive personalization strategy to show a unique product offer to each customer. It is beneficial for both the user and the online store. Customers receive only product recommendations of their interest, as well as relevant messages in response to their behavior and preferences, and the company manages to increase conversion, revenue, and average order value”

Alexey, Retail Rocket manager
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