The Home Appliance & Gadget Store client had noticed that while their customer base was increasing, they needed help to reel in customer churn, customers relying on discounted products, customers needing clarification on the website they had to order from, and ineffective marketing strategies.
They needed fresh eyes on their brand to take it to the next level and ensure that their long-term customers weren’t putting them aside for another brand—especially for a brand with high levels of competition.
Particularly, these were points for concern:
- Owned Revenue via Email & SMS was low
- Customer Loyalty & Lifetime Value was low
- Conversion Rates needed improvement
Blend, as always, carried out extensive audits to decipher the source of these issues to attack them head-on.
Utilising one of our primary tools, Omniconvert, we were able to analyse their current customer base and divide them by the RFM Segmentation process. This allowed us to decipher where different customers were in their customer journey based on the following:
- Recency: The time since the customer's last purchase. Recent customers are often more engaged and likely to make repeat purchases.
- Frequency: The number of purchases made by the customer over a specific period. Customers who make frequent purchases are indicative of higher engagement and loyalty.
- Monetary Value: The total amount of money spent by the customer on purchases. Customers with higher monetary value contribute more to the business's revenue.
Through this analysis, we were able to break down the customer journey into 6 key states, namely, Lovers, New Passions, Platonic Friends, About to Dump You, Ex Lovers, and Breakups. These signified where the majority of their customer base was in their experience with Consumer Goods and allowed us to target and hone our focus to specific groups.
While we’d focus on winning back the About to Dump Yous, Ex Lovers, and Breakups, we’d also focus on nurturing our Platonic Friends and New Passions, encouraging them to move into the Lovers group. These actions assisted us in not only bringing back once-loyal customers but also preventing churn with the most loyal ones and keeping them engaged with relevant targeting.
Due to Omniconvert’s integration with Klaviyo, we were also able to utilise the data obtained in Omniconvert to create Email Flows specific to each customer based on where they are in their customer journey. Not only did we create an easy-to-read email template that utilised a cohesive funnel to lead customers where they needed to go, but our marketing team were able to target customers with relevant and engaging content by the use of segmentation, correct timing, and Klaviyo’s logic block functionality.
By identifying customers based on their purchase frequency, we were able to target customers with email campaigns and flows, encouraging more frequent and recent purchases while strategically upselling and cross-selling to increase monetary value with the use of Rebuy. Rebuy allowed us to recommend specific products that were relevant to the customers’ purchase and engagement history—keeping content and recommendations relevant.
The most loyal customers were targeted with content containing Home Appliance & Gadget Store’s long-standing rewards program (powered by LoyaltyLion) and encouraging them to earn points in lieu of the standard discount rewards, which doesn’t drive Customer Lifetime Value. The results include increased purchase frequency along with increased brand awareness and brand trust. These campaigns and flows contained simple yet informative information, guiding customers and educating them on why they chose the brand in the first place.
Blend aimed to increase not only Home Appliance & Gadget Store’s Average Order Value but also their Customer Lifetime Value and customer engagement.
As a result, Home Appliance & Gadget Store’s Owned Revenue increased by 32% in just 12 months.
Additionally, using Omniconvert’s NPS Survey feature, we were able to conduct numerous surveys and subsequently determined that Home Appliance & Gadget Store’s customer base found the current web design to be confusing and occasionally seemed untrustworthy. Customers noted many things throughout these surveys, including:
- Increased communication needed
- An easier-to-use website
- Less confusing product descriptions
- Customers who found nothing wrong at all and loved Home Appliance & Gadget Store’s products
Noting these, our teams went to work to create customised solutions:
- Design a cohesive website that enticed trust and understanding.
- A/B tested hypotheses on-site to determine which approach performed better when identifying potential optimisations.
- Create a smooth customer journey funnel to ease confusion on-site.
- Refined product descriptions to better communicate the value and benefits of Home Appliance & Gadget Store’s products.
- Increase targeted communication, specifically post-purchase, to increase brand awareness and brand trust while remaining relevant and engaging.
Our design and development team ensured that the ordering and checkout process was easy to understand by enhancing the checkout journey, while marketing ensured that communication, even after a purchase was made, remained consistent, engaging, and relevant.
Additionally, Blend created NPS-focused Flows and Campaigns to allow customers’ voices to be heard, while the data provided from these were redirected back into Klaviyo. This allowed us to segment and target customers based on concerns, or lack thereof, and enhance their overall customer journey.
To address product description concerns, Blend took advantage of Message Mining, where the team would analyse customer feedback, reviews, and those of competitors to understand customer pain points and needs better. This allowed product description copy to be simple and succinct while also hitting all the benefits that customers were looking for without them having to search or read too much.
Based on this task, Blend took on the task of creating copy throughout the client’s website and not only on product descriptions by using the problem-agitate-solution (PAS) framework. This was implemented throughout specific landing pages, including their video shopping landing pages created using Videowise.