PUDRA Case study: revenue growth from automated campaigns from 26% to 36%

9 Dec ‘17

pudra-ru-2PUDRA is the largest online cosmetics store on the post-USSR territories. PUDRA is focused on a young, progressive audience, carefully following the novelties and trends in the beauty industry. The store was designed to deliver every customer his own, very personal shopping experience, normally met in luxury shops only.

Why Mindbox

Before Mindbox-era, other service was used to send mailings. Automated communications were launched via internal solution. It was difficult to do more in this situation, because the launch of new automated campaigns and hypotheses testing required a lot of effort from IT. All the customers data, purchases story and mailings-related data was kept separately in different services and mailings for different customer segments were sent through «mailing lists», created by marketer manually, in MS Excel. That is why PUDRA marketing spent too much time on routine instead of launching new marketing campaigns.

What PUDRA is using in Mindbox:

  • Email
  • Product Recommendations
  • Mailings Frequency Control
  • Control groups: the best way for measuring added value of personalization
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Power of Numbers

The main metric of the project was the revenue from the automated communications in comparison to the total revenue from the Email-channel. The period from December 2016 to February 2017 is a high season for PUDRA, as a period of holidays and gifts. Relative to the period before Mindbox, revenue from triggers increased from 26% to 36%. The graph is based on data from Google Analytics:

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Communication Frequency Control

To make communication frequency comfortable and personal to each specific customer, Mindbox developed an intelligent algorithm. Based on the customer behavior, the algorithm makes and automated decision on should we send this particular message to specific customer or not. If the client temporarily lost interest in the brand, the algorithm gives him some time for respite. It creates a situation when every mailing is interesting for a customer. For now, our results are demonstrating that customers which are receiving mailings, controlled by algorithm are less likely to unsubscribe, they are more likely to stay active keep interacting with the brand through mailings.

The result of the algorithm was measured with the control group: half of the customers fall under the conditions of the frequency control, and the other half is not.

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The letter internals

To show your customers the most personalized content, the marketing department of PUDRA pushed to the maximum use of all the capabilities of the template engine, our special markup language. In each automated letter there are numbers of conditions that the system takes into account when generating a letter for each client such as his behavior, purchases and personal data like name or gender.

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Even in a simple reactivation letter, we consider customer’s segment, his last purchase, the availability of a promotional code, similar products, the hottest offers of the week, and much more is taken into account. The client sees only those offers that could be relevant for him.

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Automated Email Communications

We’ve launched more than 30 automated scenarios.

Mechanics:

  •     Abandoned view
  •     Abandoned category
  •     Abandoned Cart
  •     best-selling products are back on the stock
  •     Birthday letter
  •     Wishlist letter
  •     Welcome series
  •     Product review
  •     Shop review
  •     Reactivation based on purchases
  •     Reactivation based on behavior
  •     Club Member special offers

Wishlist Letter

After the customer adds items to favorites, after a while we send him a letter with a reminder. Depending on the customer’s behavior, the communication can become a chain.

wishlist

Welcome series

The welcome chain adapts to the client’s behavior and includes several letters with A / B tests.

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Club Member Special Offers

Many PUDRA customers are members of the Pudra Secret Club, which provides secret discounts. Customers don’t always remember to use it on time. When we send the reminder we take into account personal discount and the offer’s validity date.

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Summary

We’ve successfully centralized data in one place, moved the campaigns from two services to Mindbox and started to segment customers. Mindbox provided an opportunity to test hypotheses and launch new mechanics without involving PUDRA’s IT. As a result, the average revenue from the automated communications has increased by 8%. We’ve launched an algorithm to control the frequency of mailings, which results in the number of unsubscriptions and increase the OR / CR. In September, we launched a control group to measure the real added value of the automated communications and preparing the next case study based on the results.

Anastasia BlinovaAnastasia Blinova, CMO
PUDRA

PUDRA Feedback

For a long time we have been looking for a solution that would allow our marketers:
— Quickly launch and test hypotheses (without involving IT)
— Built segments based on purchase and behavioral data in a single tool
— To collect all stats in the single dashboard and analyze them from different cuts
In all these tasks Mindbox does an excellent job. We got a lot of opportunities to improve our interaction with customers and are now limited only by our own imagination.»

Mindbox Manager

Anna Stepanova

Anna Stepanova
Success Manager
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