How Ennergiia earned over 100 million rubles with an ROI of 664% in a year through direct communications

31 Oct ‘19

Ennergiia — Ennergiia – is an online designer clothing store featuring Armani, DC Shoes, Levi’s, and other famous brands. Their database contains over 220 thousand customers, their site and back-office are based on in house developments.

The Ennergiia online store earned over 100 million rubles in one year using web pushes, emails, and SMS messages to attain an ROI of 664%. In this post, we will share our experience for fashion stores: we will share with you 8 mechanics in three communication channels that resulted in revenue growth. We will bring in on a little secret, and that is which mechanic earns 36 million rubles via an SMS channel. Reviews on our collaboration were provided by Ennergiia Marketer, Pavel Reshetov, and Irina Chuprova, Ennergiias Marketing Director.

The situation

When creating the Ennergiia online store, the owners wanted to construct communications with their clients through a marketing automation platform. Based on colleague recommendations, they settled with the Mindbox CDP. The service was connected for:

  • Email Newsletters
  • Web pushes
  • SMS Newsletters
  • Product recommendations

Cross-channel communications via email, web pushes, and SMS mailings were set up to communicate with clients in channels that are most convenient for them: not all Ennergiia clients have an email address or a phone number. Communications via SMS and web pushes brings in a little less than half of the total revenue of direct communications.

The key metric of the project is revenue from direct communication channels relative to the total income of Ennergiias online store.

Key figures

664%

ROI from Mindbox

100+ million rubles

Ennergiia revenue
From direct communications for the year

3 communication

channels used
by Ennergiia via Mindbox

Revenue results

Ennergiia uses four business metrics to measure its achieved effectiveness from using Mindbox:

  1. Revenue from direct communications based on the last click methodology from Google Analytics.
  2. Revenue from associated communication conversions from Google Analytics.
  3. ROI from Mindbox.
  4. Additional revenue relative to the control group from product recommendations.

Revenue from direct communications from Google Analytics

According to Google Analytics, revenue from direct communications is measured in two ways: by the last click measurement technique and by associated conversions. Below, we’ll take a closer look at the revenue from direct communications based on last clicks and associated conversions.

Last click measurements in Google Analytics

Using the Last click measurement method, we are earning 4.9 million rubles per month and 60 million annually from direct communications. On the graph, we show the share of revenue relative to the total revenue of Ennergiia – the client requested that we do not disclose these details in absolute for pertinent months. In July 2019, the share of direct communications fell, as expenditures on SMS contact with clients was reduced.

Share of email, SMS, and web push revenue by last click relative to the store’s total revenue

 Data since connecting Mindbox in July 2018
Data since connecting Mindbox in July 2018

Measurement of associative conversions in Google Analytics

If a client came to the site through channel No. 1, then through channel No. 2, and bought something having visited the site for the third time, from channel No. 3, then the conversion will be counted under channel No. 3, and associated conversions will be counted for channels No. 1 and No. 2, since they played a role in the user’s journey towards a purchase, but the client’s last touch came from another channel.

The method is used by Ennergiia to evaluate the effectiveness of cross-channel communications on a client’s path from first contact to purchase. In terms of associated conversions, direct communications brought 139 million rubles, yearly.

Revenue for the year between email, web pushes and SMS channels for associated conversions is distributed as follows:

  • Email — 82 578 166 ₽
  • SMS — 40 828 075 ₽
  • Web pushes — 17 201 480 ₽

Channels were connected gradually. The high email share stemming from the total revenue from direct communications is due to the fact that SMS and web pushes were only connected 4 months after the start of our collaboration.

ROI from Mindbox

Calculated ROI for Mindbox. For our calculation, we required a month’s worth of indicators:

  • Revenue from direct communications according to Google Analytics data with last-click measurements
  • Average margin
  • The monthly cost of the Mindbox platform, without including VAT

The client requested that we do not disclose exact figures in this publication. The formula is as follows:

ROI = (Revenue from direct communications according to Google Analytics data with last-click measurements * average margin) / Monthly cost of the Mindbox platform, without including VAT × 100%

Ennergiias ROI from Mindbox comes out to 664%. Each ruble invested in Mindbox brought the client 6.6 rubles.

Additional revenue relative to the control group from product recommendations

The key business metric for analyzing the effectiveness of on-site product recommendations is revenue achieved in the main group relative to the control. Clients were exposed to recommendations in the main group, but not in the control group.

Google Optimize was used to measure the conversion rate and revenue of both groups and compared them to one another. The group that was exposed to product recommendations brought in 1 million rubles more per month than the control group. The result is statistically significant, with a confidence level of 99%.

We go more in-depth about product recommendations in a separate article on Ennergiias website. A link to that will be posted at the end.

Comparison of revenue from recommendations between the main and control groups
Comparison of revenue from recommendations between the main and control groups
Comparison of the number of orders made between the main and control groups
Comparison of the number of orders made between the main and control groups
 Pavel Reshetov Pavel Reshetov
Ennergiia Marketer

Review from Pavel

«We were faced with the task of launching interesting and profitable triggered mechanics, the guys from Mindbox suggested where to start and shared their most effective cases. Therefore the mechanics were launched very fast.

During their launch phase, many questions arose, from data transfers to layout queries, but managers at Mindbox were very helpful and quickly suggested where and what could be done better so that everything would turn out just how we wanted.

It’s very pleasing that in Mindbox, you can combine all communication channels under one service, that’s very convenient. For example, in the case of a waiting list, we can send messages immediately across several channels right from one interface by submitting just one back-end query.

Now we are thinking about the next batch that we will send for cost reduction purposes (first an email/push, if that’s not read, we will send an SMS) it’s super cool that you can do all of that without leaving the trigger editor»

Mechanics launched

Ennergiia connected three communication channels in order to maximize user reach. Those who do not read emails will receive personalized SMS messages. Unregistered users subscribe to push notifications and receive newsletters without leaving their contact information.

We will share some examples of the mechanics launched in the following three channels: email, SMS, and web push. Let’s go over the special qualities of each campaign and the results they yielded in monetary terms. In total, we’ll go over 4 campaigns involving 8 mechanics:

  1. Email, SMS, and web push-based waiting list.
  2. Reactivation based on purchases using a promotional code from SMS/email/web push.
  3. Adding products to a favorite list through email.
  4. Price reduction on goods that were favorited via email.

We’ll go over each of these mechanics in further detail below. The revenue indicates the associated Google Analytics revenue for the entire duration that these mechanics are in action. The numbers are rounded for simplicity’s sake.

Email, SMS, and web push-based waiting list

If some clothes or shoe items are unavailable, a buyer can subscribe to them on the website using a special form that becomes available after logging in.

On site waiting list subscription
On-site waiting list subscription

After the customer signs up, all that’s needed on his end is to wait for the goods to appear in stock. Depending on the client’s subscription type, he or she will receive a web push, SMS, or email notification. Communications go out simultaneously because it is important for Ennergiia customers to receive information as quickly as possible: the most popular products can frequently disappear within minutes after they become available.

In this case, clients prefer to receive several communications at once across different channels. It’s thanks to these communications that he or she will be able to know immediately upon an item that interests them becoming in stock. Below are some examples of communications done over email, web push, and SMS.

Waiting list mailing results

Newsletter Discoveries Clicks Revenue
SMS 36 000 000 r.
Email 15.95% 4.61% 12 150 000 r.
Web push 59.70% 3.17% 5 000 000 r.
SMS
Item from wish list
Irina Chuprova Irina Chuprova
Ennergiia Marketing Director

Irina’s feedback on waiting list mechanics

«We, probably like any other online store, have a goal, and that is to improve every day. Quite often, we look at market leaders and try to adapt their best mechanics to increase our number of orders, new customers, and of course, revenue. We frequently get the following question from our clients, “will this model appear in stock again”? We even have a special telegram chat with our customers, where they can share their problems with us. All of our team specialists are connected to this chat and are ready to answer questions from their field of work. The idea to create a waiting list was born after we noticed that the “will this model appear in stock again” question became the most popular one.

In this, we discovered benefits for our customers and a strong growth point for our business. A client will know if a model becomes available back in stock, while we will receive a maximally hot customer that’s ready to make a purchase. Since we allow for a partial buyout of an order – many customers often order several sizes of clothes so as to not throw around money and, oftentimes, customers get beat to ordering a favorite item that fits their size directly on-site, due to someone having already ordered it. And this is exactly where we connected our waiting list.

If this was the last option in stock, and it didn’t work out for the client, the path of delivering a good to a client and until a new model appears on site takes a bit of time, meanwhile, another client can add a fancied model which to his or her waiting list. When a product in question goes back in stock, the customer will be notified of that, creating a win-win situation for everyone: the customer who was waiting for his item and the online store that did not lose said customer.

We track products that customers add to their waiting lists on a monthly basis, so we create a list of product recommendations for category managers (procurement specialists) because it’s always easier to make an order when you know what a client wants».

Reactivation based on purchases using a promotional code from SMS/email/web push

If a customer was once active, no longer returns for purchases at Ennergiia, we send out the following chain: email, web push and SMS with a personal promotional code for his or her next purchase.

Results of the reactivation newsletter

Newsletter Discoveries Clicks Revenue
SMS 119 925 r.
Email 15.20% 2.66% 218 286 r.
Web push 57.03% 1.84% 0
Discount
Discount off promo code

Adding products to a favorite list through email

If a customer added some products to his or her favorites list but didn’t buy, we will send out a reminder letter about that.

Results of the newsletter for adding products to a favorite list via email

Opens Clicks Revenue
15.39% 3.73% 5 000 000 r.
An example of a sent out letter concerning favorited products
An example of a sent out letter concerning favorited products

Price reduction on goods that were favorited via email

If the price of a product in someone’s favorite list has gone down, we will automatically notify the client about this through our email channel.

Results from favorite product price decreases via email newsletters

Opens Clicks Revenue
11.48% 2.63% 5 257 000 r.
An example of a letter about a favorite product price decrease
An example of a letter about a favorite product price decrease

Conclusion

We set up automated campaigns for three communication channels: email, web push, and SMS. Based on the method of associated conversion measuring method, they earned 129 million rubles and 60 million rubles with an ROI of 664% according to the last click attribution. Going forward, we plan to set up cascading newsletters from cheap to expensive channels to reduce direct communication costs.

We invite you to read our previous material involving Ennergiia if you wish to learn how they earn an additional 1 million rubles of revenue relative to the control group using on-site product recommendations.

This material was prepared by

Pavel Reshetov

Pavel ReshetovMarketer at Ennergiia
Anastasia ChipryakovaProject Manager

Philip Volnov

Philip VolnovLead Manager and material author
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