The Covid-19 pandemic has sent ripples around the world with most industries taking a major hit on their regular business. Government-mandated periods of lockdown and self-isolation have negatively impacted the retail industry. Even after the small-scale reopening of certain retail outlets, customers have remained hesitant to physically visit these spaces to make purchases.
“One man’s loss is another man’s gain”
Just as this quote goes, the e-commerce industry has been the biggest beneficiary during this period. More and more customers have either increased or migrated to digital consumption. A surge in demand from customers has seen the e-commerce industry thrive in this uncertain situation, despite challenges on the operations and supply chain side.
In fact, e-commerce players like Amazon and Flipkart saw a sharp increase in sales of non-essential items as well, as the sales began to reach up to 70% of pre-Covid levels. This sudden and unexpected influx of customers preferring to purchase online meant that brands had to be digitally present and active to leverage the surge experienced in website traffic.
Existing customers have to be retained by providing them exactly what they are looking for; based on their unique tastes and interests. And, new customers who are either landing on the e-commerce website or launching the app need to be engaged and targeted through an effective personalization strategy.
Brands that are flourishing at such a time have understood the need to make this opportunity count.
Having recognized this, many e-commerce platforms have turned to Smartech to help them convert their online traffic and first-time visitors into repeat customers who wanted to associate with them.
Qtrove, a leading e-commerce marketplace for healthy retail products chose Smartech to help them deliver personalized customer experiences at scale.
Here’s a look at how Smartech helped Qtrove accomplish the same, while helping them increase revenues by 18% through a data-driven omnichannel personalization and marketing automation approach.
The Challenges Faced
Qtrove provides retail products that enhance the health, well-being, and social currency of their customers. These products are non-factory produced and instead crafted by local sellers or entrepreneurs.
With customers looking for health-conscious options in the wake of the Covid-19 crisis, Qtrove saw a surge in their website traffic as their products were the need of the hour.
However, this increase in the website traffic did not translate into completed purchases. The absence of an intelligent omnichannel personalization and marketing automation solution meant that Qtrove was unable to maximize this carefully generated website traffic.
- Acquiring a new customer can cost 5X more than retaining an existing customer
- Increasing customer retention by 5% can increase profits from 25-95%
These statistics illustrate how essential it is for an e-commerce brand to keep its existing customers happy and satisfied.
Being a key focus area, Qtrove was unable to get its existing customers to make repeat transactions, which led to a negative impact on the Customer LifeTime Value (CLTV).
These negative trends ensured that the overall revenues remained low. In a competitive industry where customer switching behavior is prevalent, Qtrove needed to address these challenges at the earliest.
The Smartech Strategy
Smartech helped Qtrove harness the power of AI-led omnichannel personalization and marketing automation by personalizing the complete customer experience. This meant that they could use AI-led 1:1 product recommendations across their website and key marketing channels.
These recommendations were provided after a thorough understanding of both historical and live customer behavior across platforms and channels through our advanced analytics module.
With the data of each customer available at their disposal, Smartech helped Qtrove craft automated, data-backed customer journeys across their various website and email marketing channels.
By giving each individual customer exactly what he/she was looking for on the website and suggesting the most relevant products over contextual emails, Qtrove was able to add customer delight to the cart!
The Solutions Provided
- Web and Email Personalization
Smartech’s AI engine, Raman, helped customize the website experience for every customer in such a way that they got to see only those products that they are most likely to purchase.
By addressing the problem of product discovery, Qtrove was able to serve up product recommendations tailor-made to individual customers. The more personalized these recommendations, the higher the chances of customers making a purchase.
Through Smartech, Qtrove also personalized their email channel by creating an automated customer journey.
This meant that whenever a customer added a product to the cart but didn’t complete the purchase, an automatic email would get triggered with personalized products being recommended for that specific customer.
This reduced the chances of a complete customer drop-off while also nudging the customer to return to the website – to complete his/her purchase.
2. Cross-Sell Product Recommendations
Smaretch’s patented algorithms helped identify those products that were complementary to their top-selling products, giving the brand room to cross-sell products along with their most popular ones.
These products were then positioned as “commonly purchased together” and shown to the customer while viewing any one of those products.
When a customer completed a product purchase, the algorithm would identify the products that could complement the product that was purchased by the customer. Since these products could add value to the initial product purchase by the customer, they would be recommended to the customer through a web push notification.
In case the customer doesn’t engage with the push notification, a personalized email would get triggered by providing the customer those same product recommendations.
This way, the brand was able to cross-sell their products by providing customers recommendations of products they were most likely to purchase as a complement to the product they initially had purchased.
3. Reactivation of Dormant Customer
It’s beneficial for a brand to focus on retaining existing customers than to work on attracting new ones because the existing users are already aware of the brands and their offerings.
The brand meanwhile also has valuable customer data that can be used to deliver personalized customer experiences. In the case of Qtrove, there was a sizable customer segment that didn’t make a purchase even after a month of their last purchase.
These customers were re-targeted with a personalized “We Miss You” email campaign to nudge them to transact again with 1:1 relevant product recommendations.
This was a strategy to spike up the interest of customers who were on the verge of churning out. By providing those customers relevant product recommendations, the brand was able to regenerate interest in the customer.
Personalization isn’t a “set-it-and-forget-it” strategy. For an e-commerce platform to reap its benefits, it requires execution across marketing channels. Especially while resuscitating dormant customers over channels that they’re most engaged on, such as email.
Not only do such email campaigns create brand awareness, but also establish an instant emotional connect with customers. The relevant product recommendations also let customers know that the brand understands their needs, wants, tastes, and expectations.
Qtrove’s focus has always been on delivering the best possible customer experience. By personalizing individual customer journeys on the website through 1:1 product recommendations; they were able to increase conversions and revenues.
Smartech’s Omnichannel Personalization & Marketing Automation strategy was an instant hit with the brand and the results were there to see immediately.
- Within just 90 days, Smartech was able to contribute to 18% of Qtrove’s overall revenue, a sharp increase in such a short span of time.
- A contribution of 6% of the revenue was powered by the AI-enabled Web Personalization campaign which involved providing customers with personalized product recommendations based on their interests and desires.
- The Intelligent Engagement campaign which focused on sending customers emails by sensing their inactivity accounted for 12% of the revenue.
With the passage of time, we can expect Qtrove’s customers to engage and purchase more and more thanks to the intelligent and personalized product recommendations that are fueled by Smartech at the back-end.
Smartech has helped numerous other e-commerce brands uplift conversions through our industry-leading omnichannel personalization and marketing automation capabilities.
Personalization has become the need of the hour nowadays to keep customers happy.
To understand how we can help your brand build a winning personalization strategy to keep your customers constantly engaged and also positively impact your conversion metrics – reach out to us today!