Data Analytics in Marketing Case Study – How Analytics drove Rs 34 Lakhs in sales during the lockdown from first time ecommerce shoppers.
True story of how data analytics can fine-tune and accelerate your performance marketing campaigns.
Company: Brand F – A premium fashion brand for women
Brand F is a premium women’s fashion brand with an omnichannel presence. The brand has 48 offline stores and a direct-to-consumer/e-commerce website. They are very forward thinking in terms of fashion but were found wanting when it came to customer data hygiene. The brand relied heavily on engagement. Brand F engaged with Tech Start-up X to help them better understand customers. The objective was to drive better ROI from campaigns.
The COVID 19 lockdown that came into effect in India in March 2020 brought businesses like fashion retailers to a standstill. With stores shut, deliveries prohibited, businesses like Brand F were left wondering about continuity and cash flows.
How could they get the brand’s customers to shop during these times?
Breaking the norm
Tech start-up X went to Brand F and proposed an idea: “pre-book your favourite style/merchandise from your favourite fashion brand”.
This would require a change in customers’ buying habits, from off-line to online. What was required was to move customers who normally shopped in their store to shop on their online website. This would require a sharper understanding of their customers. The process to build this 360 degree view of customers is described below.
The process: development of persona (360 view)
❖ Collated offline and online customer data in the CDP (Customer Data Platform)
❖ Cleaned, mapped and structured the data
❖ Understanding business, customer behaviour and defined missions
❖ Enrichment of customer data
❖ Definition of the marketing/engagement strategy
Predictive modelling technique
This involved running a series of models, including propensity modelling, to arrive at segment of customers most likely to purchase. This meant pruning the database from overall size of 6+ lakhs (600,000) to 41,000.
Personalisation; multi-channel engagement & campaign duration
This was done based on the purchase history recommendations and made to each of the 41,000 customers. Engagement with them was through personalised and relevant communication on Facebook; Instagram; SMS & E-Mail.
– 1.9% response resulted in 779 customers shopping (by way of coupon redemption)
– 42% were pure offline customers –they made their first online purchase
– Average Transaction Size (ATS) of 4400 ->resulted in net sales of Rs 34+ Lakhs
– Campaign cost: Rs 27,000
Company X used CDP, data analytics and marketing automation tools. Post Covid-19 – retention will be the new customer acquisition model.