Shophair case study: using control groups to prove high added value by emailing campaigns automation

2 Dec ‘17

logo_rus Shophair.ru is an online store with professional cosmetics. Shophair helps to achieve healthy hair for more than 70 thousand customers for the last 10 years. The store sells more than a 100 of various cosmetics brands.

What Shophair.ru is using in Mindbox:

Why Mindbox

Before Mindbox era, e-mail marketing in  Shophair.ru was relatively primitive: some bulk mailings with Mailchimp and a couple of simple trigger-based communications through CMS. Many of the customer life-cycle scenarios couldn’t be automated because of the lack of IT: it was required to develop more integrations and campaigns logic.

For example, Shophair.ru marketer Catarina had to manually create «Happy Birthday» mailings to congratulate customers or to suggest to buy shampoos or cream based on their previous purchases. It took a lot of time working with HTML or data export and filters in MS Excel. For example, if a letter had an items showcase, it had to be created and checked if all the prices and images are looking good and so on. The databases of the external ESP and the store had to be synchronized and manually loaded every day.

Shophair marketers wanted to get rid of unnecessary work, improve automatic communication chains and add a lot of new ones, by centralizing customer database in one place and increase revenue from email channel.

ShophairStatsEng

Turning On the Control Group

From the start we’ve decided to measure added revenue through control group:
Each month 5% of randomly chosen customers has been excluded from email communication. By the end of the month, we’ve measured the difference in revenue between those who get email communication and those who don’t. We’ve also measured average revenue per user, number of purchases and conversion to order.
Such way of measurement allows us to reliably measure the added effect from communication.

Power of Numbers

The first two months the share of revenue from mailings relative to the control group did not show any significant results (the confidence interval crossed zero) – there wasn’t enough data for measuring. Additionally, we’ve worked hard for two months on improvements to existing campaigns and launching new ones from the scratch.

For the third month of our work, we finally met good and trustful results.

Revenue share from email (calculated with Control Group) was 34.7% (with a confidence interval of 10.5% to 57.9%). Confidence probability: 95%

It was very interesting to compare results, gained from Control Group method with commonly used Google Analytics last click attribution.

Every month the value of the share of the Email-channel for GA appeared within the confidence interval of the share from the CG, but for the first two months the value, as shown by the CG, was statistically insignificant.

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The revenue has increased, but why? After we took a closer look, we’ve noticed that the main contribution to revenue growth was made by a significant increase in the average check by 22% (with a confidence interval from 6.5% to 37.3%) in the group receiving the mailings comparing to the control group:

check

In addition to a statistically trustful measurement using a control group, Shophair.ru measured the effectiveness of the email-channel before and after connecting Mindbox via Google Analytics. According to GA, email channel grew 2 times in just 3 months.

shophaireng

Automated Email Communications

In just 3 months Shophair.ru has launched more than 81 (!!!) automated email communications with an incredible number various scenarios, successfully covering their customer life-cycle.

Among trigger-based campaigns we’ve launched:

  • Abandoned View
  • Abandoned Category
  • Abandoned Cart
  • Angel’s Day
  • Customer’s Birthday
  • NPS
  • Welcome Series
  • Reactivation based on the behavior
  • Special Offers in categories customer interested in
  • Item replenishment reminder

NPS

npscut

Shophair.ru cares about customer service quality. After the order is successfully delivered we send a letter to the customer, kindly asking them to rate the quality of service. If the customer wasn’t satisfied, we sent his contact information to Call-center automatically, allowing shop’s managers take special care on each specific occasion.

On the other hand, customers rated Shophair.ru service as «Good» or «Excellent» has been asked to leave a review and rate shop at Yandex.Market, most popular marketplace at CIS. Reviews and rates are tracked by Mindbox and stored in the customer profile, allowing marketers to use these data for building the segments and launch new campaigns.

Customer Rating statistics

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Welcome Series

shophair1

Welcome series from Shophair.ru is adapting to the specific customer behavior. It also gives an opportunity to get to know more about one of the oldest cosmetics stores in Russia.

Angel’s day

Angel’s day is an interesting way of connecting with the customer. The image with the name of the customer is generated on the fly and each particular customer receiving its own personalized message.

Product Recommendations

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We started to use Mindbox’s personal product recommendations in emails, adjusting algorithms to marketer’s needs.

Summary

First automated communication was launched two days after finalizing the contract. In just three months we’ve launched more than 80 trigger-based communications and managed to significantly grow value from automated communications, which was proven by the control group. In the near future Shophair.ru plans to add RFM-segments, SMS mailings and personalize content in Email even more.

Leonid
Leonid, Мarketing Director
Shophair.ru

Shophair Feedback

«Email-marketing in Shophair.ru has launched some time ago but was greatly underestimated. When we started the work, the situation was rough: the scorched subscriber base, low open rates, bulk mailings only without any type of segmentation.We decided to re-launch email-marketing in the company and chose Mindbox as a partner.During the first month, almost all standard triggers such as abandoned view and others, a series of reactivation letters and a few more from above were launched.

After that, we felt almost unstoppable and let our imagination flow! There are plans to make welcome series lasting for several months or even a year.We focus on useful, educational mailings in the customer’s world. We do not sell through mailings, we help the client find a better and smart solution. In the niche of professional hair cosmetics, this approach is especially important.

As a result, Open Rate grew up several timEmail-marketing in Shophair.ru has launched some time ago but was greatly underestimated. When we started the work, the situation was rough: the scorched subscriber base, low open rates, bulk mailings only without any type of segmentation.We decided to re-launch email-marketing in the company and chose Mindbox as a partner.During the first month, almost all standard triggers such as abandoned view and others, a series of reactivation letters and a few more from above were launched.es, our customers began to read our emails.We did smart multi-step reactivation campaigns trying to recover relationships with customers, who was disappointed with long-term email bombing.This month we segmented our customers and run dedicated communication strategy for each particular segment. Implemented an assessment of the quality of service and delivery, which makes us proud: both metrics were over 90%.

The result of the implementation is described in the case study, but we are realizing, that we’re still somewhere at the start point. All the fun is still to come, so wait for the second case from us in next few months.

In conclusion, I want to highlight the well-coordinated work of the Mindbox team. They do not leave us 1-on-1 with the platform, there is always a manager and support, which will help us to perform even better».

Mindbox Manager

Philipp Volnov

Philipp Volnov
Client Success Manager

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