BRIGHTAGE, a Japanese skincare and cosmetics brand under IM, offers anti-aging products to middle-aged customers, helping them maintain skin resilience, as well as moisturize and brighten their skins.
Customers are able to choose between a trial kit and a subscription trial on BRIGHTAGE’s landing page, but the number of new customers who chose the trial kit was always higher as they feel it’s too much to pay for the subscription. IM wanted to encourage more subscriptions as it believes that customers are likely to see skin improvements from regular uses.
IM conducted A/B tests in two campaigns to decide the most effective coupon.
Campaign 1: IM used AiDeal, Appier’s customer targeting solution powered by advanced Machine Learning, to conduct one A/B test, randomly dividing the target audiences who were hesitant customers into a 50:50 ratio. While Group A was offered a coupon for 500 yen off upon selecting the subscription trial, Group B didn’t receive any coupon. The performance was measured based on the conversation rates (CVR) of the two groups.
Campaign 2: IM used AiDeal to send coupons to visitors who landed on the site in two separate tests in order to understand how different discounts influence performance. The same customer pool was randomly divided in a 50:50 ratio, and group A was offered a coupon of 300 yen off in the first test while group B was offered a coupon of 500 yen off in the second test. The impact of different incentives on CVR was measured.
Based on the results of the A/B tests, IM found that in the first campaign, the CVRs of the two groups were almost the same. However, in the second campaign, the CVR of the first test was 22% higher than the second test. In this way, IM was able to identify the most cost-efficient incentive, which was 300 yen off. Its subscription rate from new customers has improved from 40% to a maximum of 70% since the first month of the campaign.
Download our latest white paper to understand how AI and Data Science can help you predicting customer behavior in Financial Services