How the Hyperauto automobile shop chain increased its ROI by 316% with direct marketing.

1 Jul ‘19

LogoHyperauto – is a network of auto shops based in the Far East. It envelops 40 stores and 19 auto services. All sales are carried out offline, with over 31 998 items available for sale.

Mindbox opinion

Hyperauto is a unique company and a special client for us. Car markets are traditional offline businesses that work with conservative audiences. While at the same time, the company has a high degree of business automation, while the owner himself is seriously involved in marketing and making strategic decisions.

In a personal meeting, he shared with me that he believes there should be anime style Japanese girls on Hyperauto advertisements, billboards. It was at that point that our marketing department proposed to carry out some AB-tests. The idea revolved around placing two billboards in comparable locations. One of them would be minimalistic, while the other would present anime characters. The goal of our experiment was to determine which billboard would yield the best results. In order to track these results, different promo codes were placed on each billboard.

Over some period of time, our marketers provided a report in which it was obvious that the minimalistic billboard with a clear marketing promise yielded 30% more sales as opposed to the anime board. The owner changed his opinion and allowed the marketers to hang the billboard which attracted more clients, rather than the one he liked.

This is just a small example of how properly constructed processes and a deep study of marketing strategies leads to success.

Goal: transition to personal omnichannel marketing

Hyperauto utilizes billboards and radio advertisement. However, a billboard can’t be used to provide a sizeable discount to a specific segment of clients, more specifically, those who haven’t shopped around in a while. While providing every random person with said discount isn’t profitable. Which is why the company decided to cut back on mass offline advertising and instead, to interact more individually with each buyer.

Personal omnichannel marketing is built on data pertaining to client behavior. For example, when and for which sum a purchase was made. By having information on each client, the store doesn’t just provide him or her with a generic discount but rather issues a personalized offer. To do so, Hyperauto utilizes two channels, email and text message.

It’s difficult to launch such marketing campaigns manually. Hyperauto saw great use in Mindbox because the platform allows to combine buyer data in a unified interface and to work with offline buyers with the help of online channels. While at the same time it allows for the automation of marketing campaigns.

Solution: personalized marketing with the help of automation

In order to see information related to buyer behavior and to set up marketing campaigns, Hyperauto connected Mindbox. Now, the client base, all purchases and promo code generation activities are all stored in one system, which allows for the purchase of more complex mechanics and to quickly gauge their effects.

From the perspective of a buyer, it goes like so: a client receives a notification of a discount via text message or email, comes to the store, shows his promo code or discount card at the register, the order enters the Mindbox system, which processes it, at which point the cashier sees which discounts are available to the customer and for what items.

In addition to this, Hyperauto marketers monitor all client purchases and based on their findings they can chose deploy marketing campaigns which they can then continuously improve upon.

This results in personal and omnichannel marketing:

  1. Unified discounts on all channels. A client receives the same special offer via email, text message, and within the store itself.
  2. End-to-end analytics. The company sees what, when, and at which store each client makes a purchase. If a buyer used a promo code at the register, the system shows from which online marketing channel the client came from.
  3. Personalized offerings. Analysts see which purchases the client has made previously and offer discounts on goods from adjacent categories which the buyer has not already acquired. Thus, a push is made towards additional purchases.
  4. Segmentation of marketing campaigns. For example, those who have made a recent purchase, or haven’t made one in a while.

Launch of a campaign to reactivate «sleeping» clients

After integrating Mindbox, Hyperauto marketers launched automated and personalized offers with promo codes. The first offer related to reactivating «sleeping» clients.

Hyperauto analyzed their client database and noticed that it contained «sleeping» clients amounting to 30% of their entire base. By sleeping clients, we refer to those who don’t react to newsletters and don’t make any purchases. Such clients don’t yield profits, but take up resources, since the company spends funds on SMS newsletters and storing contact data on our platform.

It was decided to set up and launch a reactivation campaign. If «sleeping» clients didn’t react to it, they were to be removed from the newsletter list or studied in further detail.

The reactivation campaign for «sleeping» clients is continuously ongoing. With the help of Mindbox, marketers are able to easily launch and analyze its results without having to rely on developers. We provide data on the campaign for the first six months following launch.

Upon the campaign launch, there were 115 thousand «sleeping clients» in Hyperautos database. These are people who haven’t purchased anything over the course of the last 210 days.

During this period, Hyperauto sent its clients three emails and text messages with promo codes. The first batch contained a promo code for a 15% discount, followed by one with 20%, and 30%. Five days prior to the conclusion of each stage, clients received a reminder. If a client provided two contacts within a form, he would receive both an email and text message.

Hyperauto marketers wanted to figure out how much money the reactivation campaign could yield. Thus, they decided to measure results with the help of a controlled group. The group was comprised of 10 thousand randomly selected people from Hyperautos «sleeping» client base. These clients were not sent promo codes with discounts.

At each stage, we split the «sleeper» base in half and sent them two different types of newsletters. For example, one would contain a 20% discount, while the other, an offer for 500 rubles. The idea was to select the newsletter type which ended up yielding the best results and to continue using it further. The flat discount came out victorious.

The discount won
We tested what readers would be most interested in: a 20% discount or a 500-ruble gift. The discount won.

Reminder about the offer
At each stage, five days prior to the offer expiring, clients were issued a reminder about the offer.

At each stage, Hyperauto sent clients identical offers via email and text message.

In order to maintain clarity in the experiment, only those clients which fell under the reactivation campaign from the get-go or those who exited the loop by completing a purchase were considered when calculating campaign results. Clients that became «sleepers» during the reactivation campaign were not considered.

The uniqueness of this campaign lays with the fact that Hyperauto launched a campaign via online channels for clients who are typically frequenters of offline stores.

Roman Aleshin
Roman Aleshin Hyperauto Analyst

Hyperauto Opinion

Our main goal wasn’t to simply launch a reactivation campaign for «sleeping» clients. We wanted to learn how to objectively evaluate the effectiveness of such a mechanism: have a clear guideline in the form of a control group, an understanding of our ROI and volume of additionally received profit in rubles. Additionally, there was a need to automate this mechanic in order to eliminate the need to manually select clients and hit them with newsletters. We had questions pertaining to separate discount parameters, which we planned on finding answers for during our AB-tests.

Together with our colleagues from Mindbox, we set up all necessary triggers and started sending clients offers over 3 stages. During our AB-tests, we managed to figure out the most effective variants when it comes to discount sizes and actually formulating our offer. After 6 months, when the first wave of clients passed through all stages of the reactivation program, we came to drawing up conclusions. After comparing indicators with the control group, we noticed a rather obvious economic effect. Our payback on expenditures was more than decent. Additionally, we gained a clear understanding of how «sleeping» customers behave (how they react to different types of offers, which portion of them «wakes up» without additional promos, how the average bill differs from stage to stage depending on discount sizes).

After going through this, positive, and clearly digitized experience, we began utilizing the possibilities of triggered work with other categories of clients by incorporating new mechanics.

Conversion of advertisement mailings

Over the course of six months, 12.9% of buyers from the control group reactivated by themselves. They spent, on average 7% less money in stores than buyers who participated in the campaign.

Conversion of the control group

Conversion of the control group

What pertains to the main group, over the course of the campaign, 21,135 clients reactivated (20.1%). Of which 2,444 clients (2.3%), utilized promo codes. While 18,691 (17.8%) made a purchase without using a promo code.

When evaluating results, Hyperauto considered that a part of the experimental group could have reactivated by themselves, as this was the case with the control group. Presumably, the percent of those who reactivated by themselves, without a newsletter, is exactly the same as in the control group, 12.9%. Consequentially, 17.8-12.9=4.9% clients reactivated thanks to the mailing list but didn’t utilize a promo code. We can assume that they were pushed towards making a purchase thanks to Hyperauto reminders via email and text message.

Reactivation of sleepers, quantity of clients

Reactivation of sleepers

How much reactivated clients spent across all three stages:

Segment of clients that participated in the campaign How much they spent compared to those who did not participate
Bought without a promo code 7% more
Bought with a promo code 118% more

The average revenue per check from those who used the promo code was twice as large in comparison to other segments. While the average revenue per check in all three segments was about the same.

Conclusions based on the reactivation campaign

Throughout the campaign’s continuation, we managed to reactive 20.1% «sleeping» clients. From them, 2.3% used promo codes. They spent, on average, 118% more money than those who didn’t participate in the reactivation. 4.9% of reactivated buyers acquired goods, but didn’t use promo codes. They spent 7% more than buyers from the control group. The ROI indicator for the reactivation campaign came out to 316%.

When calculating net profit, Hyperauto marketers added profits derived from those who reactivated with a promo code and those without on top of the control group and subtracted text message sending costs.

Thus, Hyperauto were able to:

  1. Stimulate their clients to make new purchases with the help of email and SMS.
  2. Track which offline clients came back after a mailing.
  3. Calculate the quantity of offline money which was brought in by online activities.

First results of Hyperauto’s personalized marketing

The success story of Hyperauto shows that with the help of properly thought out details, it’s possible to achieve great results and profits. For example, in order to launch the reactivation campaign, the Hyperauto base was analyzed, «sleeper» clients were pinpointed, a chain of letters was created and the AB-testing was carried out at each stage. As a result, the investment paid off, by more than three times.

Proper, unobtrusive marketing, which respects clients and the aim of which is to do them good, is beneficial to the clients and business. During the reactivation campaign, Hyperauto interacted only with those buyers who didn’t come to their store for quite a while. Thus, the company made an appealing offer to «sleeping» clients, instead of spamming regular buyers.

Creating personalized marketing for online stores is easy. Typically, we send out an text message or email; the client follows the link within by making one or two clicks and completes a purchase. It’s a bit more complicated with offline stores. In order for a client to make a purchase, he has to leave his home and physically come to the store, measuring the effects is harder. Mindbox tools allow one to realize such difficult to resist value offerings and properly measure them.

In this way, using Mindbox, Hyperauto analyzes its offline client behavior, interacts with them with the help of online channel marketing and provides them with personalized discounts.

Aleksander Voronin
Aleksander Voronin Chief Executive Officer of the Sokrat marketing agency.

Opinion of the Sokrat marketing agency

The network of Hyperauto automobile shop and service stores are one of our main clients. This is a unique company, which took upon itself the role of an innovator in terms of our nation’s automobile goods. In their development, they rely on a mission, which is to provide all motorists in Russia with the best solution for servicing and improving their automobiles through high level service.

And I am very happy that Hyperauto trusted us with all of their marketing and managing large digital projects. In this regard, we have received a great deal of help from Mindbox. With their, assistance we were able to part ways with many manual tasks relating to working with our client database, automate our interaction with various segments and integrate personalized offers. All of this yielded a tremendous benefit for business, the effectiveness of direct communication with consumers is proven with numbers. 316% ROMI – is an achievement of not only a well thought out strategy but the Mindbox platform as well, which helped to easily and rapidly realize this strategy.

Mindbox team

Timofey Stolyarov

Timofey StolyarovProject Manager

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