How tracking real-time interest in products helped increase revenue by 118.62%: Maxidom’s case

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The segmentation of the subscribers’ database is one of the most important email marketing tools. Online stores owners often underestimate its effectiveness. Segmentation allows the brand to adapt to changes in the target audience and always to send relevant content to the end users.
With the help of segmentation, subscribers can be divided into a separate segment of those users who have recently been interested in products from certain categories and are now interested in them.
Online stores can segment users by a specific parameter and, thus, to use these segments, for example, to create newsletters. Today we present how by using Retail Rocket’s segmenting tool you can increase the revenue of an email campaign.

Maxidom is a network of hypermarkets for home and garden, design and construction. Today, its network includes thirteen hypermarkets with a total area of more than hundred and eighty thousand square meters where you can find building materials, plumbing and DIY items, goods for cottages and gardens, car spare parts, toys for children, household appliances, furniture and pet goods.

Maxidom online store uses a CRM system that assigns segments of interest to make emails relevant to subscribers. However, a CRM does not always contain relevant information and may not take into account those who have just begun to show interest in certain product categories.

For example, in the subscriber’s purchasing history, decoration and furniture items predominate for the living room or bedroom, and the store sends new offers for these sections to the subscriber. By looking at user’s history, we can see that the user started by browsing products for the kitchen and dining room first such as dishes and kitchen utensils. If you only look at the data of purchases, email marketing becomes a retrospective tool: since it has no orders for kitchen items, the subscriber does not receive the products he needs at any given time.

Interest in the category is a segmentation tool, which is one of the features of Retail Rocket’s platform. With its help, we can distinguish a segment of users who have shown interest in a particular category recently.

With the help of “interest in the category” in Retail Rocket’s mass mailings, we increased the size of the subscribers’ segments, which are interested in specific categories of products, adding to the database those who showed interest but were not yet registered in the CRM.

Expanding the subscriber’s segment by highlighting interest in the product category

Hypothesis:

The use of interest in product categories in real time will allow the size of the segment to enlarge and get additional profit from an email campaign.

To test the hypothesis, an A/B test was carried out. In the segment with interest in the category “Household items and kitchens” in the CRM system of the online store, Maxidom sent an email.

A few minutes later, using Retail Rocket’s platform, all the subscribers who were interested in the categories “Tableware and kitchen utensils” and “Household goods and decor”, received the same newsletter. The addresses of the subscribers that had already received an email via the CRM were excluded from the recipients. The distribution of Retail Rocket was destined to the addresses of subscribers who had interest in those products, but this interest was not registered yet in CRM Maxidom.

Both segments were sent the same emails:

Thanks to the “Interest in the category” segmentation tool, the size of the email campaign recipients increased by 10%, which brought 118.62% of additional revenue.

The added segment showed higher metrics compared to the segment of users who were allocated using CRM:

Therefore it was, not only, possible to expand the subscriber’s base, but also to increase key metrics and revenue of the email campaign:

  • Number of subscribers increased by 10%
  • Open Rate: 186.55%
  • CTR: 201.16%
  • Conversion Rate: 199.83%
  • The number of orders from an email campaign increased by 75%
  • The revenue of the email campaign increased by 118.62%

Due to the expansion of the subscribers’ segmentation, the income from emails sent increased by 118.62% and the total number of subscribers by 10%.

At the same time, all the metrics are higher than in the segment assigned in CRM.

Conclusion

Setting the interests of users in CRM and analysing the order history is undoubtedly very important. The consideration of interests in the product categories in real time allows you to communicate with users who are ready to choose and buy products at this time. This hot demand must be sought to satisfy as quickly as possible so that the users do not move on to more agile competitors.

The enlargement of the subscriber’s segments by analysing their behaviour in real time helps to increase the profits of an email campaign significantly.

Comment from Maxidom

Our main tasks are to take care of the comfort of our clients and help them meet their needs. Therefore, for us, it is very important to have the opportunity in time to offer customers exactly the products that interest them at the moment. Retail Rocket experts helped us to be closer to our subscribers. With the help of Retail Rocket’s segmentation tool, we were able to expand the CRM data from our online store, which led to an increase in the conversion rate and a significant increase in the number of orders.

Ilgiz Mullabaev, Internet marketer at Maxidom’s online store

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