lamoda case study- june 2016
TRANSCRIPT
[email protected] Yield | Unified Customer Engagement
Lamoda is the leading online retailer in Russia, offering more than 1 million products from 900 brands to 20 million unique visitors each month. The company turned to Dynamic Yield to increase its personalization efforts at scale so that it could convert more of its existing visitor base into paying customers.
Using Dynamic Yield’s Unified Customer Engagement Platform, Lamoda generated a $15 million uplift in gross profit in the first nine months.
8%Increase in Revenue
Per Session
$15MUplift in Gross Profit Return On
Investment
35X
“Our customers demand excellence from us and our couriers. Working with Dynamic Yield helps us to deliver the truly personalized and unique shopping experience online that our shoppers receive offline. Finding new innovative technologies to bring us closer to our customers makes a huge difference for us.” Niels Tonsen
CEO of Lamoda
Lamoda Achieves $15M Uplift in Gross Profit Dynamic Yield Personalizes Experiences for 20 Million Shoppers
CA
SE STU
DY
1. Create over 160 audience segments
Lamoda began with a broad personalization approach. Using Dynamic Yield, the company segmented visitors by geo-location and presented banners featuring apparel relevant to each visitor’s local weather conditions.
The company then took it one step further and targeted based on historical purchases, past behavior, and affinities for products and brands. To do this, the company used Dynamic Yield to create over 160 audience segments, each with precise targeting rules.
Segments created included visitors:
• Who purchased when presented with discounts greater than 10%
• Who viewed, purchased, and added-to-cart from specific brands
• With more than 10 product page views per session
• With order values greater than Lamoda’s AOV
• Arriving from affiliate sites
• Exposed to coupon banners but did not use a coupon code
2. Create segment-specific coupons
Over the course of a year, Lamoda used Dynamic Yield to design and serve personalized coupons to the segments it created. When comparing the results of a major coupon campaign with Dynamic Yield, Lamoda discovered that the customer engagement platform increased AOV by 13%, conversion rate by 11%, and Revenue Per Session (RPS) by 25%
Execution
Lamoda had been in business for five years, growing rapidly by targeting every possible audience type. Although the company achieved success, it realized that with no new audiences left to target, a new strategy for sustaining revenue growth was needed. A key question became: how can Lamoda increase the lifetime value of its existing, sizable customer base? The answer seemed to be in enhancing the website experiences of each visitor; but with 20 million unique visitors, how was that to be done, especially since the company wanted only one employee to manage the process?
It soon became obvious that Lamoda needed a solution that would allow it to:
• Create granular audience segmentations across its vast customer base
• Automate targeting capabilities to tailor specific offers to each segment
• Replace manual maintenance with machine learning to optimize experiences
at scale
That’s when Lamoda approached Dynamic Yield, a company that provides a unified customer-engagement platform that provides personalization, recommendations, 1:1 messaging and yield optimization across all customer touch points.
Challenge
[email protected] Yield | Unified Customer Engagement
3. Emphasize product reviews to engage idle visitors
When visitors idle on product detail pages it’s a strong indication that they are hesitating with the purchase. Lamoda wanted to leverage product reviews to nudge visitors into making purchases.
Using Dynamic Yield, Lamoda triggered notifications featuring the top-rated and best-worded reviews on the page to visitors who stayed on a page without any interaction over a specified period of time.
4. Increase basket value on checkout pages
Dynamic Yield helped Lamoda increase overall AOV by triggering coupon notifications as soon as a visitor interacted with the checkout form. Each coupon was automatically optimized according to a real-time calculation of cart contents, offering a larger discount upon reaching a higher order total.
5. Personalize product grids based on visitor affinity
Tailoring product discovery on category pages is a great way to help customers find desired items and proceed to checkout quickly. To expedite the buying process from category pages, Lamoda used Dynamic Yield to present personalized banners that reflect the color and filtering affinities of each visitor.
Upon banner click through, category page grids were dynamically re-rendered according to each visitor’s most preferred product color and sorting order. By personalizing product grids according to affinity, Lamoda ensured that all visitors were presented with products in ways that fully recognized their tastes and preferences, thereby dramatically improving conversions.
Execution
By personalizing based on micro-segmentation and affinities, Lamoda achieved its goal of building stronger relationships with its existing customer base, leading to:
• $15 uplift in gross profit due to Dynamic Yield
• 8% overall uplift in revenue per session
• 35X Return on Investment, a remarkable achievement
What’s especially significant is that Lamoda achieved these results using only one person on its team.
Inspired by this tremendous success, Lamoda continues to use Dynamic Yield to create granular audience segments, automatically personalize experiences, and increase revenue.
Results
[email protected] Yield | Unified Customer Engagement
Audiences
Name
Always with discount > 10% (user)
CP view (session)
Coupon lovers
Viewed LAMANIA > 3 (session)
Bought TOPSHOP
Unique Users Last Modified Actions
+ ADD AUDIENCE
(6.8%)
(0.5%)
(1.5%)
(0.6%)
(66.1%)
Apr 17, 2015
Jan 19, 2016
Apr 10, 2015
Jun 13, 2015
Jan 13, 2016
Lamoda.ru
Dashboard
Experiences
Site Settings
Account Settings
Knowledge Base
Logout
Admin
Audience
Search
Create over 160 audience segments 1
[email protected] Yield | Unified Customer Engagement
Create and serve segment-specific coupons2
[email protected] Yield | Unified Customer Engagement
Emphasize product reviews to engage idle visitors3
Increase basket value on checkout pages 4
About Dynamic Yield
Dynamic Yield helps marketers increase revenue by personalizing each customer interaction across web, mobile apps and email. Our advanced customer segmentation engine uses machine learning to build actionable customer segments in real time, enabling marketers to take instant action via personalization, product/content recommendations, automatic optimization & real-time messaging.
Reap the Benefits of Personalized Shopping Experiences
dynamicyield.com | [email protected]
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Personalize product grids based on visitor affinity5